The Importance of Dental Professional Liability Insurance

Having dental professional liability insurance is a crucial aspect of being a dentist. It provides financial protection against lawsuits and malpractice claims. This type of insurance is specifically designed for dentists and dental professionals.

The cost of a lawsuit can be staggering, with some cases reaching into the millions of dollars. In fact, a single lawsuit can cost a dentist up to $1 million in damages and legal fees. This is a significant risk, especially for solo practitioners or small dental practices.

A lawsuit can also damage a dentist's reputation and practice, making it difficult to attract new patients and maintain a good standing in the community. In fact, a survey found that 75% of dentists who faced a lawsuit experienced a decline in their practice's reputation.

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If you're a dentist or dental professional, you're likely aware of the importance of having the right insurance coverage to protect your practice and reputation. One key benefit of dental professional liability insurance is the protection it offers against claims of malpractice. With this type of insurance, you can receive a 5 percent program discount, as well as an additional claims-free credit of up to 10 percent, if you're an FDA member.

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You'll also have access to free web-based and live CME, which can help you stay up-to-date on the latest developments in the field. Additionally, if you're part of a dental society, hospital committee, or other professional board, you may be eligible for coverage up to the policy limits.

One of the most valuable features of dental professional liability insurance is the right to approve settlements. This means that no lawsuit can be settled without your consent, giving you a level of control and agency in the process. You'll also have coverage for attorneys' fees, arbitration costs, expert testimony fees, court costs, and settlement costs, which can help protect your practice and finances in the event of a claim.

Here are some of the key benefits and features of dental professional liability insurance:

Overall, dental professional liability insurance can provide you with peace of mind and financial protection in the event of a claim or lawsuit. By understanding the benefits and features of this type of insurance, you can make an informed decision about whether it's right for you.

Dental malpractice claims can be costly and devastating for both dentists and patients. A dentist's worst nightmare is a malpractice claim, and unfortunately, mistakes can happen even with the best care.

In South Sydney, a man was awarded $100,000 for a malpractice lawsuit after a dentist caused nerve damage. In 2016, a contaminated dental unit waterline caused infections in 71 pediatric patients, leading to a 12-office dental group shutting down.

Some common types of claims made against dentists include improper crown/bridge placement, prescribing incorrect drugs or dosages, and improper tooth extractions. According to the American Dental Association (ADA), these are among the most common claims made against dentists.

Here are some of the most common risk exposures that dentists face:

Dental malpractice claims can be costly, with some cases resulting in significant financial awards. In South Sydney, a man was awarded $100,000 for a malpractice lawsuit after a dentist caused nerve damage.

A contaminated dental unit waterline caused infections in 71 pediatric patients in 2016, leading to a 12-office dental group shutting down. This incident highlights the importance of proper infection control in dental practices.

Another patient was awarded $9.8 million for a malpractice suit after a botched wisdom tooth removal. These high-stakes cases emphasize the need for dentists to prioritize patient safety and take steps to prevent such incidents.

The most common types of claims made against dentists include improper crown/bridge placement, prescribing incorrect drugs or dosages, and improper tooth extractions. These claims often result from a combination of human error and inadequate training.

Here are some examples of costly dental malpractice claims:

These cases demonstrate the importance of having a malpractice insurance policy in place to protect against costly claims. By being proactive about risk management, dentists can minimize the likelihood of facing a malpractice claim and safeguard their practice's reputation and financial health.

A claims-made policy is a type of malpractice insurance that covers incidents only if they happened and the claims were filed during the policy period.

The premiums for a claims-made policy are typically lower in the first five years, but they increase yearly until reaching their mature level.

Claims-made policies usually have less expensive premiums than occurrence policies, but this is because the dentist is essentially paying for tail coverage in the yearly premium.

To stay covered after retiring or leaving a practice, dentists with claims-made policies need to purchase specialized insurance called "tail coverage."

Tail coverage continues to protect dentists after they retire or until the statute of limitations is over, and some insurance companies offer it for either type of policy.

If a dentist chooses a two-year claims-made policy but gets sued two years and 45 days after the coverage is canceled, the claim is not covered because the policy only lasted for two years.

Here's a comparison of the two types of policies:

Remember, a claims-made policy covers claims when they are made, so the policy must be active for coverage to be in effect.

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There are two main types of dental professional liability insurance policies: Claims-Made and Occurrence. A Claims-Made policy covers incidents only if they happened and the claims were filed during the policy period.

Claims-Made policies are typically offered at a lower cost by an insurance company, with premiums based on the timeframe in which the claim against you is made. This timeframe usually ranges from 1-5 years.

If you choose a Claims-Made policy, you'll need to purchase tail coverage when you retire or leave your practice to continue protecting yourself after the policy ends. Tail coverage can be expensive, typically costing 2-3 times the expiring premium.

Occurrence policies, on the other hand, cover incidents that happened during the policy period, even if the claim is filed after the policy expired. This type of policy ensures continuous coverage throughout your career.

Here's a summary of the two types of policies:

Keep in mind that switching from one type of policy to another can be complex, and you'll need to ensure the new policy will pick up prior acts to avoid gaps in coverage.

Choosing the right professional liability insurance provider is a crucial decision for dentists. It's essential to consider factors such as company reputation, financial strength, and coverage options to find a provider that best meets your needs.

Providers like MedPro Group and CNA offer extensive policies and resources that cater to the broad needs of the dental profession. Companies like TDIC and the Professional Protector Plan offer specialized coverage that addresses the specific risks faced by dentists.

Determining the right amount of professional liability insurance coverage is crucial for dentists. This decision should be based on a thorough assessment of the potential risks and the financial implications of a malpractice claim against your dental practice.

Anyone in the dental field needs to obtain malpractice insurance to mitigate their risk. This includes general dentists, orthodontists, periodontists, endodontists, oral surgeons, and prosthodontists.

To choose the right insurance provider, consider the following factors: special rates for recent grads, legal defense costs outside the limits of liability, availability of both occurrence and claims-made coverage, limits of liability options, no deductible, knowledgeable claims professionals, consent to settle, convenient payment plans, online access to manage your policy, and financial strength ratings.

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Here are some key terms to understand when it comes to malpractice insurance:

Dental malpractice insurance is a type of professional liability insurance that provides coverage if a lawsuit is brought against you. In most cases, the insurance company will provide you a lawyer and cover court-related costs, judgments, or settlements.

On average, claims against dentists pay around $300,000. However, some claims can pay millions, such as the $10.2 million awarded in a wrongful death case or the $14.8 million awarded in a jaw repair case.

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Dental professional liability insurance can be a significant expense, but it's essential to consider the potential costs of not having it. The average cost of dental malpractice coverage for new dentists within their first five years of practicing can be as low as $300—$1,000 a year.

Factors like your specialty, practice size and location, and personal claims history can influence your policy premiums. For example, a recent dental school graduate's first-year occurrence policy can cost anywhere from $100 to $400 per year.

Your premiums will typically increase each year for the next 5 years before they max out. Here's a breakdown of what dentists, hygienists, and periodontists might pay for dental malpractice insurance at Berxi in Massachusetts:

Most dentists don't have the resources to pay the high costs of court fees, settlement awards, and indemnity claims out of their own pockets. Between 2001 and 2021, most dental claims were less than $50,000, but many were above that amount, costing up to $2 million or more.