UK Dentist Insurance

High-paid and high net worth professionals such as dentists need to carry appropriate property and liability insurance to protect their business and personal assets. Without such insurance, a fire or other catastrophic event could destroy thousands of dollars of equipment that would have to be replaced from personal assets. Even more important, a lawsuit for professional malpractice by clients or an injury claim by workers could result in very large judgments that could wipe out a lifetime of savings in a moment or result in garnishment of earnings for many years.

The purpose of insurance is to protect individuals against catastrophic events that have a small probability of occurring and very high financial consequences. Most individuals wouldn’t have sufficient personal savings to cover these expenses out-of-pocket. Particularly for liability claims, the larger the dentist's net worth, the greater the size of the potential award for damages. Consequently, it is critical for a dentist to purchase and maintain an insurance policy to adequately protect his or her business.

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Many UK insurance companies have “all risk” insurance policies that are specifically designed for professionals such as solicitors, accountants, doctors and dentists. While insurance policies vary in terms of types of coverage and exclusions, a typical policy will offer the following types of coverage on a standard or optional basis.

• Structure. This covers damage to the building where the dentist’s office is located and/or the office itself due to fire, flood, earthquake or other similar events. This typically includes damage to signs, windows and other parts of the office front. It also covers loss of income if the office must be closed for repairs.

• Contents. This covers damage to the contents of the dentist’s office due to natural catastrophes, theft and accidents. It covers such items as computer equipment, professional equipment, fixtures and fittings and personal effects and loss of income due to office closure.

• Public liabilities. This protects the dentist against claims for injuries or damage to property of third parties – typically the dentist’s clients – that the dentist causes in the course of business or from services that he or she provides. This could be an injury suffered on the dentist’s premises from a fall or accident or it could be an injury caused by professional malpractice.

• Employer liabilities. This protects against claims by the dentist’s employees for injuries suffered in the course of their employment. This includes claims for compensation for lost wages, medical or other expenses required as a result of an injury and legal costs to defend against any lawsuits.

• Loss of money. This compensates the dentist for loss of money due to theft while it is locked in a safe in the dentist’s office, in temporary storage at a bank or in transit to or from a bank.

• Personal accident (assault). Benefits cover costs for bodily injury to the dentist and employees and damage to property due to robbery or assault.

• Legal expenses. Coverage for legal expenses is very important. Particularly for liability claims, there can be extensive litigation to determine whether the dentist is liable and the amount of damage claims awarded.

For all of the coverages listed above, policies always contain a maximum amount of benefit that will be paid per event or over the life of the policy. The policy also typically contains an "excess" for some or all of the coverage types. The excess is the amount the dentist must pay before the insurance company pays anything. This means the dentist will typically pay small claims out-of-pocket. The purpose of the insurance is to cover catastrophic losses and not minor losses that can easily be covered by the dentist from cash flow or savings.

It is important for the dentist to carefully examine all insurance policies and the financial strength of the insurer before making a purchase. Not all of the coverages listed above are included as standard benefits. Some may have to be added as options. In addition, the dentist will typically have several options for the maximum benefit payable and the excess. These choices may have a significant impact on the policy premium. Finally, all policies have exclusions – certain types of events that are not covered. For example damage to structures due to subsidence may not be covered or may require an additional premium.

However, all professionals require all risk insurance coverage. The dentist’s office structure and the business equipment used in the business are expensive and will need to be replaced if it is damaged or destroyed. In addition, a great deal of business income can be lost while the office is closed for repairs and equipment is replaced. Lawsuits by clients or employees can also result in personal and business bankruptcy in the absence of insurance. Luckily, many insurance policies are available to protect high-paid professionals against these risks and appropriate insurance is as essential to the success of the business as office and equipment.