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Hidden Liabilities in Your Dental Practice

Can You Survive a Loss with Your Current Policy?

by Lindsey Kutscher, MDIS Licensed Agent

As a dentist, you face a fair amount of liability in your day-to-day practice and if you own a practice, you face additional liabilities you may not have previously considered. While you probably already realize the importance of professional/malpractice liability, how much do you know about your business owner’s policy and its liability coverages?

Often, we notice our clients use the term liability or general liability interchangeably when referencing premises liability or professional liability. 

General liability from a commercial standpoint is typically in reference to premises liability. If you are a practice owner and/or independent or sub-contractor, make sure you have general liability in place. In the event a patient or other third party were to be injured on the premises, this is the only way to insure your exposure. For example, a patient falling on their way to an operatory: Whether you own the practice or are working as a sub/independent contractor, your premises liability is the same. A patient was in the office to see YOU. Therefore, you or your legal entity can be held liable for an injury on the premises. Because this is not a treatment related issue, professional liability would not come into play. However, general liability does because the incident occurred in/on the premises in which you practice. 

If you are a practice owner who also owns the building your practice occupies, you have an even greater exposure! In this instance, your liability is not limited to the office space in which you practice, but extends to common areas of the building, space occupied by other tenants (if applicable) and even the parking lot.

You’ve heard it before: you get what you pay for. That said, not all business owners’ policies are created equal. While most captive agencies are hyper focused on property, contents and general liability coverage, MDIS knows these are just a few of the many coverage considerations you should be aware of to protect your practice from what could be detrimental loss. Some of the most utilized coverages by our insureds aren’t even included in a captive agency’s policy and when they are, the limits tend to be insufficient. Such as: 

Business Interruption 

What would you do if your practice sustained a tremendous physical loss, such as a fire? Would your current policy provide business interruption coverage helping to pay overhead expenses for your practice while you’re not able to work? It’s likely if you have a loss, you’ll need to find a temporary practice location while restorations take place. This type of coverage will help pay rent, utilities, staff salaries and other business-related expenses when your practice suffers a physical loss. 

Computers and Media 

Does your policy have a separate limit of coverage for computers and media? If not, it should. The replacement of computers and media (i.e. digital x-rays) could be time-consuming and costly. Some agencies might tell you that these items are covered in your business personal property (or content limit) but may not increase your limit of coverage accordingly. If your policy does have coverage outlined for computers and media, make sure your business owners/contents limit will suffice.

Reimbursement for Legal Expense Coverage for Court or Review Boards 

While most carriers do not offer this endorsement as part of their business owners policy, MDIS’ carriers do! This is an important coverage to have if you’re called in front of a court or review board for issues other than treatment of patients and it does just what it says: reimburses you for legal expenses.

Tenants Improvements and Betterments 

Do you lease your office space? If so, check your current policy to see if you have coverage for leasehold improvements (otherwise known as tenants’ improvements and betterments). Often, we learn that our insureds (as tenants) are responsible for the improvements they make to their office space. Unsure? Check your lease agreement. Tenants’ improvements and betterments or leasehold improvements would include items such as operatory cabinets, light fixtures, paint, flooring, etc. If you don’t have insurance protection for items such as these, you may end up paying out of pocket to restore these enhancements.

As an insured, you may or may not realize commercial property insurance rates are often based on the property value in which your practice is housed, as well as overall location, building type (age, construction, condition of building), and not only your own loss history but losses nationwide. Due to widespread losses across the nation, we saw significant increases in property rates over the last year. Especially for building owners. This is yet another reason to take the time to look over your policy. We know this task may seem daunting but it’s important to make sure you have adequate coverage and that your liability exposures are being addressed. If you are not sure where to start, MDIS is happy to review your current policy, offer suggestions or even provide a no-obligation quote. MDIS is here to help!

Lindsey Kutscher, Licensed Agent, is the MDIS Practice Insurance Manager. Contact her at info@mdis4dds.com or call 800-944-7550.

Checked Your Insurance Lately?

Or do you let a sleeping baby lie?

by Jerri Wildhaber, MDIS Operations Director

Just like parents are the safety net for those sleeping babies — willing to do anything to keep them secure and provide for their well-being — so too, insurance is a critical safety net that helps protect your financial well-being against unexpected events. But just as children grow and needs change, life evolves and so do your insurance needs. Reviewing your insurance coverage regularly is essential to ensure that you are adequately protected and not overpaying for unnecessary coverage. Here’s why you should review your insurance and how to do it effectively.

WHY YOU SHOULD REVIEW YOUR INSURANCE

Life Changes // Major life events such as marriage, the birth of a child, purchasing a practice, changing jobs or hiring an associate can significantly impact your insurance needs. For example, a new baby may require you to update your health or life insurance policy, while buying a practice could mean you need to be sure you have Business Owners insurance coverage, and hiring an associate can bring new liability issues you never thought about.

Coverage Gaps // As circumstances change, it’s possible your current insurance policy might not cover all the risks you face. A review can help identify gaps in coverage, ensuring you are adequately protected from potential financial burdens.

Changes in the Market // The insurance market is dynamic, and new policies or updated plans may provide better coverage at a lower cost. By reviewing your insurance, you can take advantage of newer options that fit your current needs and budget.

Cost Savings // Insurance premiums are often based on factors such as age, health, practice location, payroll, revenues or even the procedures you are performing in your practice. Over time, your situation may change, and you may qualify for discounts or lower premiums. Reviewing your policy can uncover opportunities to save money.

Regulatory Changes // Laws and regulations governing insurance can change, impacting how much coverage you need or how your policy is structured. A regular review helps you stay compliant and aware of any new requirements.

HOW TO EFFECTIVELY REVIEW YOUR INSURANCE

Assess Your Life Changes // Start by reviewing any personal, financial or professional changes that may have occurred. Ask yourself:

  • Have I recently bought a practice or major equipment to use in my practice?
  • Have I hired or reduced my staff size?
  • Am I working part time, or doing new/stopped doing any procedures?
  • Has there been a change in my marital status or family size?
  • Have I taken on more debt or made significant investments?

Answering these questions will give you a clearer idea of whether you need to update your coverage.

Evaluate Your Coverage Needs // With your life changes in mind, consider if your existing policies still meet your needs. Do you have enough health insurance to cover medical expenses, or have your deductibles and co-pays changed? Is your practice insurance sufficient to protect against the risk of natural disasters, fire or theft? What about your malpractice — are you paying for coverage you don’t need or are you missing any easy discounts?

Check Your Deductibles and Limits // Reviewing your policy’s deductibles and coverage limits can help you decide whether they still make sense for your practice or financial situation.

Review Policy Exclusions // Policies can have exclusions, and it’s crucial to be aware of them. For instance, most Business Owners policies may not cover flood damage, and Malpractice policies may exclude certain procedures unless you add coverage back into your policy. By reviewing your exclusions, you can decide whether you need additional coverage or if certain clauses should be adjusted.

Check for Policy Riders or Add-Ons // Some insurance policies offer riders or add-ons that enhance the coverage. Such as an “own occupation” endorsement on a disability policy. (Do you have that on your disability policy?)

Consult with MDIS // Any of the agents at MDIS can help you understand the details of your current policy and suggest better options based on your needs.

Document and Organize Your Policies // As you review your insurance policies, ensure that you keep them organized and document any changes made. This makes it easier to track your insurance coverage over time and ensures you can quickly access any policy details in an emergency.

Reviewing your insurance is not just about renewing policies every year — it’s about ensuring your coverage aligns with your current life, financial situation and practice goals. Make it a habit to review your policies regularly (at least once a year or after major life events) to ensure you’re getting the best possible protection at the best possible price.

The MDIS team can help with your insurance review. Call 800-944-7550 or email info@mdis4dds.com.

Risk Management: Online Social Media Reviews of Dentists
MedPro Risk Solutions offers a variety of on-demand educational programs on a range of risk management topics. These are for both office- and hospital-based healthcare providers and are available to both insureds and noninsureds. Insureds who successfully complete on-demand programs may be eligible for a risk management premium credit at their next policy renewal. Learn more about CE topics and contact MDIS to inquire about a policy discount if you are a Med Pro insured.

by Marc R. Leffler, DDS, Esq

In these days of every restaurant, hotel and concert — where you eat, stay, or attend — asking for online reviews of your experiences, it is neither unusual nor surprising for dental offices to do the same. And even when dental offices don’t seek online reviews, that does not stop patients from posting them. But beware of HIPAA constraints before responding, no matter how terrible or how glowing that review might be. Not only can an investigation and penalty ensue following an unauthorized disclosure based upon responding to a negative online review, but the same result might come to pass even when responding to positive ratings given online, as counterintuitive as that might seem. Patients “own” their HIPAA rights, so they are free to disclose/post anything they choose about their health, but that disclosure does not then constitute a waiver to allow the dentist to disclose about them about almost anything.

Dentists are not traditional vendors, but instead health professionals who are vested with the obligation of protecting their patients’ privacy, not only ethically, but statutorily as well. As such, dentists must not divulge any information about their patients, absent explicit written authority from the patient or a rule exception, which usually — but not exclusively — involves the sharing of health information among multiple providers who are treating the patient and who have a need to know.

Therefore, it cannot be emphasized enough that, before releasing or disclosing anything about any patient, the dentist must be in possession of a HIPAA-compliant document authorizing the release; in situations where a dentist might believe that sharing medical/dental information with another provider is warranted, the safest approach is a consultation with an attorney familiar with this subject matter. That extra step might be the difference between compliance and a large fine. And even when sharing information appropriately, HIPAA requires the methods for doing so include reasonable protections against the dissemination of that information to any person or entity other than specifically intended.

It also should be noted that, when situations which trigger online reviews involve claimed negligent treatment which injured the patient, leading to a malpractice lawsuit, the entire set of online events, and potentially the government actions in response, might be a source of intra-lawsuit litigation as to whether the issue could be explored in the usual discovery process and whether a jury might be able to be made aware of the events. That is not to say that it is a given that this issue would become a (distracting) part of a trial, but it is a potential unhelpful wrench that can be eliminated with due consideration in advance. Online responses to online stimuli might feel justified at the moment, but silence is often the better approach to take; a patient’s review does not constitute authorization for a response.

Online platforms have become realities of life, affecting virtually every aspect of our daily activities. For most of those activities, it is perfectly fine to give in to the temptations that set in motion various types of online posts. But doing so in the context of dental practice is entirely different, and it carries with it potential consequences that likely do not exist elsewhere. So, taking a step back, before publicly celebrating a patient’s satisfaction or defending a patient’s criticism, is a wise risk management tool. Finally, dentists ought to be aware that what office staff members post online in the name of the dentist is as though the dentist had personally done it: in this regard, dentists might wish to consider limiting who in the office — with a full understanding of ramifications — has such access to “speak” on the dentist’s behalf.

Marc Leffler is the MedPro Group Dental Risk Solutions Lead and Head of the Dental Advisory Board.