Insurance Buyers Guide for Dental Practice Owners
Protecting Your Business
When purchasing your dental practice you need to ensure that it is as comprehensively protected as possible. In the event of a major incident the very existence of your business could be under serious threat. You will typically need to ensure that you are covered for the following:
Buildings/Tenants Improvements (depending on whether the practice is freehold or leasehold)
Loss of gross revenue (known as Business Interruption cover)
Insured events should include (but not be limited to):
Escape of water
Statutory & Regulatory Insurance Requirements
There are several key areas of cover that are statutory requirements and as such, these are also CQC requirements and often the Care Quality Commission will want to ensure these covers are in force or will be in force upon completion of the practice purchase. These include:
Pressure Vessel Inspection Cover
It is often possible to incorporate most of these covers within a single, specially tailored Practice Insurance policy.
Business Dental Indemnity Insurance
If you are in the process of buying a limited company have you considered that clinical negligence claims could be brought against the limited company for treatment undertaken prior to your purchase completing? It is common to see clinical negligence lawyers bring claims against the practice as well as the dentist who provided the treatment and this would mean you being legally liable to pay any legal costs and compensation, even after the completion of the practice purchase. Having an “entity” dental indemnity policy in force provides a vital cover to ensure that such circumstances do not put the business at risk.
Lenders/Banks Insurance Requirements
It is often very common to see a lender insisting that a number of insurance policies are taken out when purchasing a new dental practice. These can range from life insurance, buildings insurance and permanent health insurance. Lenders also sometimes request that a locum policy is taken out. A locum policy covers the dentist against accident and sickness and pays a monetary benefit to the practice to cover the cost of hiring a locum in the event that the dentist is unable to work. This is different to income protection, which covers your own personal income should you be unable to work. If you own an NHS practice you will have to consider your UDA requirements and the impact of you being unable to practice due to a serious injury. Furthermore, the practice will have ongoing liabilities such as staff wages, rent/mortgage, business rates and equipment leasing expenses – not to mention the necessity to retain your patient goodwill. Having a locum policy will provide a real safety net at what would already be a difficult situation as it will give the business the capacity to continue generating revenue to meet these liabilities.
Additional Insurances Available:
Practice Insurance (buildings, contents, public & employers liability)
Practice Overheads/Locum Cover
Pressure Vessel Inspection Cover
Property Owners Insurance (buy-to-let, holiday home, unoccupied)
Medical Indemnity Insurance (individuals and vicarious entity cover)
Hands & Eyes Insurance
Directors & Officers Liability Insurance
Dental Laboratories (including products liability)
Aesthetics Medical Indemnity Insurance
Private Medical Insurance
For above services we act as introducers only.