How Much Practice Insurance Do I Need?

It’s important to have the right amount of insurance to protect your practice so that you’re not caught short when you need the coverage the most. If you have any questions regarding what amount of office insurance coverage is right for you, please call us.

TripleGuard™ Insurance:

TripleGuard™ Insurance from the Canadian Dentists’ Insurance Program is three coverages rolled into a single convenient and economical package — office contents, which protects your office equipment and supplies against loss or damage, practice interruption, which protects your practice against the financial consequences of business interruption, and commercial general liability, which pays the cost of third-party legal actions. It also includes employee dishonesty coverage to cover losses caused by staff and up to $2,500 coverage for professional accounting fees to substantiate an employee dishonesty loss.

Building Insurance:

If you are a dentist who owns the building in which you practise, the TripleGuard™ Insurance plan's Building Insurance option offers coverage — available for a competitive additional premium — for your building's structure, such as the walls, roofing and attached fixtures. To calculate the amount of coverage required, estimate the replacement cost for your building's structure, not including the value of the land or contents (furnishing, etc.) within the building. It is important to insure to the full replacement cost. Also consider adding optional Equipment Breakdown coverage to protect against the sudden and accidental breakdown of specific building equipment. Your Equipment Breakdown coverage limit will equal your Building Insurance coverage limit. If you rent out part of your building, you should also consider adding Extended Rental Income coverage. Buy coverage equal to 100 per cent of the gross annual rental income you receive.

Office Overhead Expense Insurance:

It’s fairly simple to calculate how much of this coverage you’ll need. First, figure out your monthly overhead costs. These may include fixed costs, such as:

rent and mortgage payments on your practice

property taxes on the practice

fees of a management company hired, provided such fees are attributable to your normal duties as a dentist

interest on loans for office equipment

depreciation or rental or lease of office equipment

professional association membership dues

premiums for business insurance

It may also include such variable costs as:

utilities (electricity, heat, water, internet service and phone)

accountant’s services

salaries of dental office staff (other than salaries of other dentists, including locums)

premiums for employees’ provincial hospital, medical insurance, group life and/or health insurance coverage

laundry service for the practice

Next, choose enough office overhead expense insurance to cover those fixed and variable costs. Then, if you suffer a disability, your monthly office overhead expense benefits will help keep your office running.

Your choice of options will affect your premium level. For example, you can select either Reducing payments or Fixed Benefit payments. You can also select your elimination period - the length of time before you receive benefits. Selecting a longer elimination period will result in lower premiums.

Critical Illness Insurance:

In the absence of other coverages, the Critical Illness benefit payment could help preserve your practice’s value if you suffer a serious covered illness. Select a benefit amount that is appropriate to cover your expenses such as employee salaries, utilities, rent or mortgage payments for several months or more.

Dental Office Staff Insurance:

Inform your hygienists, certified dental assistants and dental therapists that they’re eligible to purchase the Program’s Dental Office Staff Insurance, which combines Life, Accident and Disability coverages in one convenient and affordable package. Even though it’s not necessary, as an employer, you have the option of contributing to your staff members’ premiums. There are good reasons for this as it may:

improve staff morale and productivity, and help retain experienced staff whom your patients know

represent a potential tax deduction as the premium contributions may be classed as a business expense (Note however, that the premiums may then become a taxable benefit for the employee. Check with your accountant or tax advisor before proceeding.)

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