Insurance for Dental Practice Owners
Protect your dental practice investment completely
Enhanced Coverage for Practice Owners
Practice owners need more comprehensive insurance than associates. Beyond personal disability and professional liability, add: overhead expense insurance (covers fixed costs if unable to work), property insurance (protects equipment, leasehold improvements), business interruption (replaces lost revenue), cyber liability (protects patient data), and key person insurance for partnerships. Total annual cost: $15K-$30K depending on practice size.
Essential Coverage for Practice Owners
Overhead Expense Insurance - Critical Priority
Pays fixed practice expenses (rent, staff salaries, utilities, loan payments) if you're disabled and unable to work. Keeps practice viable during recovery so you have business to return to. Benefit: $10K-$25K/month for 12-24 months. Cost: $200-$500/month.
Without this, practice closes within 2-3 months if you're unable to work. Staff disperses, patients leave, equipment deteriorates. Recovery means starting over.
Enhanced Professional Liability
$3M-$5M coverage as owner vs $1M-$2M as associate. Covers your work plus work of any associates/hygienists. Occurrence-based preferred (covers incidents during policy period forever) vs claims-made (coverage ends when policy ends). Cost: $4,000-$8,000/year.
Ensure coverage transfers to corporation if incorporated. Review policy annually as staff and services expand.
Property & Equipment Insurance
Covers dental equipment ($300K-$600K value), computers, furniture, leasehold improvements from fire, theft, vandalism. Replacement cost coverage essential vs actual cash value. Include equipment breakdown coverage for major items. Cost: $2,000-$4,000/year based on equipment value.
Update coverage as you add equipment. Major purchases (CBCT, CAD/CAM) require policy increases to maintain adequate coverage.
Business Interruption Insurance
Replaces lost revenue if practice forced to close temporarily (fire, flood, renovations, equipment failure). Covers ongoing expenses plus lost profit during closure period. Typical coverage: 3-12 months at $50K-$150K/month lost revenue. Cost: $1,500-$3,500/year.
Calculate coverage based on average monthly production. Include extra expense coverage for temporary office setup if needed.
Annual Insurance Budget - Practice Owner
$22,200/year = 3-4% of practice revenue provides comprehensive protection for all major risks
Corporate-Owned Life Insurance for Tax Optimization
Beyond standard business insurance, permanent life insurance held in your professional corporation serves dual purposes: reduces retained earnings tax exposure (paying 50%+ corporate tax on passive investments) and builds tax-deferred cash value accessible via policy loans for retirement income without triggering dividend tax. Premiums paid from corporate dollars, death benefit flows tax-free through Capital Dividend Account.
Major carriers offer specialized business owner solutions: Sun Life, Canada Life, Manulife, and Equitable Life all provide corporate insurance strategies designed for practice owners with substantial retained earnings.
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Protect Your Practice Investment
Comprehensive insurance protects your livelihood, staff, patients, and the significant capital you've invested in your practice.
We'll design an insurance strategy that covers all risks without overpaying for redundant coverage.