What Is The Cost Of Dental Malpractice Insurance?
Dental malpractice insurance protects you and your dental practice against everyday risks. If your practice is accused of malpractice, then your professional liability insurance company will help you fight against the claim. On the other hand, if the plaintiff wins the claim, then your insurance company will pay out the damages. Here is what you should know about the cost of professional liability insurance.
Location of Dental Practice
Location plays a big role in the amount you have to pay out in premiums. Insurance rates tend to vary from state to state. Dentists in large metropolitan areas usually pay more than dentists in rural areas.
First-Year Claims Policy
The first-year claims policy is a type of malpractice insurance that is available at an affordable rate. It covers claims that occurred while the policy is still in effect. This type of insurance covers claims in the millions. According to Dental Economics, the average cost for a first year claims policy for a new doctor is from $300 to $400 per year. This policy will most likely increase after five years to around $2,000 per year. If you are a new dentist who purchases this policy, then you will also have to buy an additional tail policy. A tail policy protects your practice against claims after your retirement.
Occurrence Policy
An occurrence policy is a type of malpractice insurance that provides lifetime coverage for claims that occurred while the policy was still active. This means that the policy covers you claims even when you no longer has a policy with the company. Insurance companies usually offer occurrence policies at a discount rate to first year dentists. According to Dental Economics, the average cost is around $1,100 to $1,200 a year. This amount will increase to around $3,000 per year after five years.
Premiums
Insurance companies determine the amount of money that is needed for claims. This amount is divided among the insurers to determine yearly premiums and to spread the risk. Certain factors also affect your premium amount, such as personal claims history, location and specialty.
If you are a new dentist, then you want to prepare in advance. Some dentists make the mistake of waiting until they are being sued by a patient. At this point, it is too late and you could end of paying more out of pocket. The cost of dental malpractice insurance is based of policy type, location and coverage amount. To learn more, visit HMBD Insurance Services.
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