Often referred to as Dental Malpractice, Errors & Omissions Insurance (E&O) or Professional Indemnity, professional liability insurance policies are designed to protect the insured individual or organization from responsibility for any losses suffered by their customer as a result of the policyholder’s actions.
Liability insurance is critical for anyone who drives a car, owns a business, or practices law, medicine or dentistry.
How Insurance Works
Insurance premiums are based on risk, and the price for premiums is partly based on an insurer’s best estimate of how much they will be required to pay out in claims on the policies it wrote in any given year.
To cover the cost of lost claims, insurance companies use the premiums paid by their policyholders in that year. In addition to payouts, insurance premiums are also calculated to include operating expenses and underwrite taxes.
In 2019, the value of insurance premiums written in the United States was $1.32 trillion.
What is liability?
Liability is when your company is held responsible for damages or losses to a third party.
For example: If someone slips and is injured while visiting your premises, you may be held responsible for any resulting costs. Lawsuits are very costly, and not only can they be a serious financial blow, the impact on your reputation could be devastating.
You may feel like you haven’t done anything wrong, but still find yourself involved in a lawsuit. In these situations, the right kind of insurance can protect you and your business.
What is Liability Insurance?
Liability insurance is a blanket term that refers to coverage for costs associated with third-party liability issues, and is designed to protect business owners if they are found legally responsible.
As a business owner, you are exposed to a range of liabilities that can subject your assets to substantial claims. To safeguard your holdings, you need to build an asset protection plan with the right liability insurance coverage as it’s cornerstone.
3 Things You Need To Know About Liability Insurance
- It provides protection against claims resulting from injuries and damage to people and/or property.
- It covers legal costs and payouts that the insured party is found liable for.
- It does not cover intentional or criminal acts – even if the insured party is found legally responsible.
Why Professional Liability Insurance Is Important For Dentists
As a professional, you know that every time you operate on a patient there is a chance that something can go sideways. It doesn’t matter how well trained you are, accidents can happen at any time, and even if it isn’t your fault, you could still be sued.
Professional liability insurance for dentists can offer protection from the Damocles sword of patient lawsuits.
Not only will professional liability insurance cover medical expenses that the patient may incur, but it also offers financial protection against lawyer fees and court costs, and protects your employees in the same manner that it protects you.
How Much Professional Liability Insurance Coverage Do Dentists Need?
Not having enough insurance is never a good option. If you lose a lawsuit and do not have adequate coverage, it could mean you’ll have to pay out tens of thousands of dollars, or more. This is why an average sized dental practice should consider at least a 2 million dollar policy.
Because every dentist and dental practice is different, the cost of insurance policies vary, but, generally speaking, most dentists will pay anywhere from $300 to $1,000 + a year for coverage.
When a patient is dissatisfied with your care, it is important to:
- Remain calm and professional
- Be empathetic
- Maintain confidentiality
- Keep notes
- Refrain from admitting liability
- Notify us immediately
Your liability protection could be jeopardized if claim situations are not handled properly. We can help you manage reportable situations, and mitigate negative outcomes. With our user-friendly online platform, it’s fast and easy to get a free, customized, liability insurance quote for your business. Our dedicated insurance team is always ready to help you customize your insurance policy to meet your unique business needs.