Insurance considerations for your dental practice go far beyond protection against threats like theft, fire and floods. Your insurance advisor at CDSPI Advisory Services can identify other threats to your practice and help ensure your practice has broad insurance protection. For example:
When an Office Disaster Prevents You from Practising
If items in your practice sustain damage resulting from a disaster like a floor or fire, office contents insurance will help pay for their repair or replacement. But that’s not the only monetary loss you could suffer from such a disaster.
If your practice has to be closed for several days (or even weeks) while repairs are in progress after such a disaster, you could lose a significant amount of income. Your insurance advisor can show you how to protect your income in this circumstance, but obtaining practice interruption insurance.
When a Disability Prevents You from Practising
If you were to become disabled, your disability insurance benefits would help replace your personal income. However, you would still have to contend with the substantial monthly expenses of your practice. For many dentists, these expenses can total tens of thousands of dollars each month.
Your advisor can help you get the right level of office overhead expense coverage to financially protect you in this situation. This insurance provides a monthly benefit (for a specified period) to help you cover office costs (such as rent and utilities) when you are disabled, since your practice’s income will likely be reduced or halted by your inability to work. (If you’re a partner or an associate or are in a cost-sharing arrangement, you may be contractually responsible for a share of the overhead expenses and therefore still need to consider obtaining office overhead expense insurance.)
If You're Named in a Third Party Lawsuit
If someone sustained a slip-and-fall injury on your practice premises, you could be on the receiving end of a large liability lawsuit.
Your insurance advisor can assist you in dealing with this potentially crippling cost by ensuring you’re protected with commercial general liability coverage. This insurance provides coverage for damages and legal costs resulting from third-party lawsuits resulting from incidents on your office premises.
If Your Equipment Accidentally Breaks Down
Smoothly working equipment in your dental practice is vital to your business. But if an important piece of equipment accidentally broke down, you could face serious financial headaches. Even if that equipment is under warranty, you could lose income while the device is inoperable.
Fortunately, your advisor can help you gain equipment breakdown coverage. This insurance offers protection should certain types of equipment in your office accidentally break down due to an insured peril (such as a power surge). It pays for the repair or replacement of broken equipment and reimburses you if the breakdown results in a loss of income.
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If Your Partner Dies
If you practise with a partner or have a cost-sharing arrangement with a dentist at your office, your advisor can show you how to protect your stake in the practice through the use of life insurance.
With life insurance, you can gain the financial resources you need to offset financial losses on the death of a key person in your practice, or to buy out a deceased partner’s interest in the practice (fund a buy/sell agreement). Your advisor can help you determine whether a term or permanent life insurance product would best suit your needs.
When the Value of the Contents in Your Office Changes
The contents in your office (including your equipment and furnishings) are only covered up to the amount of insurance you’ve paid for. So, if the cost of replacing the existing contents of your office with equivalent items has gone up over time — and you haven’t increased your coverage amount accordingly — you could be caught short when the bills roll in.
Whenever you upgrade items in your practice, you can contact your advisor for an office contents coverage review. He or she can recommend any necessary adjustments to your coverage.