How Much Does Dental Malpractice Insurance Cost?
Friday, December 14, 2018. 1:12 PM
Insurance policies vary from region to region and even city to city. That's why it's hard to give a definite number for cost of insurance. But we can break down the different malpractice options dentists have and an estimate of how much they could cost
Two options for dental malpractice.
The first option is claim based insurance. This is the cheaper of the two options. It means that as soon as a claim is made against you, as long as you are practicing, insurance will take care of it. This insurance is great as long as you are still a practicing dentist. However, as soon as you retire this insurance will not work for you unless you purchase a tail policy. Tail policies will cover any claims brought against you while you are in retirement for things that happened while you were practicing.
The second option is an occurrence policy. It's more expensive but it will cover the dentist for his lifetime. That means any malpractice claims brought against you, whether in retirement or not, will be covered by this insurance without any extra purchase.
State Fund Option:
There are certain states that have a liability policy for dentists. This policy sets a limit on how much patients can get awarded. This does not count as malpractice insurance. It is only used in addition to malpractice insurance. You participate in a state fund by paying a yearly amount. Each state policy has a different limit set on how much a patient can be rewarded in a lawsuit. While state funds are not insurance, you can potentially receive lower premiums from insurance companies if you do participate in the state fund.
Cost break down:
Insurance premiums will start out lower and raise the longer you are in practice. For your first five years, a claims policy will cost on average $300 to $400 a year. After five years it will likely increase to around $2,000 a year. Occurrence policies start out around $1,100 to $1,200 a year. After five years it may increase to somewhere around $3,000. Some insurances offer a 5% discount for attending a yearly risk-management seminar.
Finding the malpractice insurance policy that best meets your needs can be a difficult task. Use CFO for Dentists to receive all the help you need in choosing the right insurance. Get the best premium and coverage when you let a professional take care of the choosing for you.
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