Insurance Buyers Guide for Dental Practice Owners
Protecting Your Business
When purchasing a dental practice, it is important to make sure that the business is adequately protected. In the event of a disaster, your business could be at risk. It is important to ensure that you are covered for the following:
Buildings/Tenants Improvements (depending on whether the practice is freehold or leasehold)
Contents
Computers
Loss of gross revenue (known as Business Interruption cover)
Insured events should include (but not be limited to):Flooding
Escape of water
Subsidence
Storm
Theft
Accidental Damage
Fire
Statutory & Regulatory Insurance Requirements
There are several areas of cover that are statutory requirements. The CQC requires these covers to be in place or to be put in place when the practice purchase is completed. These include:
Public Liability
Employers Liability
Pressure Vessel Inspection Cover
You can often add most of these covers to a single policy that specialises in dental practice Insurance, which will simplify the process of getting insured.
Business Dental Indemnity Insurance
When you're buying a limited company, it's important to consider the possibility that a clinical negligence claim may be brought against your business. If a claim is brought against the dental practice, this could affect your ability to complete the purchase and make it difficult for you to run the business. An entity dental indemnity policy provides cover for situations such as these.
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)
Home Insurance
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
Travel Insurance