As a dentist, it’s important to make sure you’re prepared for as many contingencies as possible. That’s where business owner policies (BOP) come in. Designed specifically for small business owners, a BOP combines key types of coverage into one convenient package.
Dental practice owners face unique risks that require more specialized protection against exposures that go beyond the typical office. That’s why business owner policies designed specifically for dental practices are important to make sure you don’t overlook coverage you need. This type of dental practice insurance forms the foundation of your coverage, helping safeguard the business you’ve worked hard to build.
Let's take a closer look at what a BOP is, how it works, what it covers, and how it may protect your dental practice.
A business owner's policy generally provides broad protection against both property damage and certain legal claims. Think of it as the rough equivalent of homeowner's insurance for your business. For dental practices, it’s a practical, cost-effective way to cover key risks — general liability and property insurance — under one streamlined policy.
A business owner's policy is typically a comprehensive policy; that is, it combines different forms of coverage in a single policy. Although many BOPs are customizable, they generally contain two main forms of protection: liability insurance and hazard protection.
The property insurance portion of a business owner's policy typically provides coverage only for the events listed in the policy. Commonly covered events are fire, explosion, vandalism, and smoke damage. Some BOPs offer "open peril" coverage that protects in the case of all known risks, but this is not the norm.
The insurance generally provides coverage only to property housed inside or within close proximity of the actual business premises. Policies may also provide coverage to third-party-owned property that is being kept temporarily in the care of the business owner.
The liability portion of the policy covers the insured party's legal responsibility for damages it may inflict on others in the course of normal business operations. This coverage is not all-inclusive, and variations occur from policy to policy.
Generally speaking, however, business owner's insurance covers damage due to defective products, faulty maintenance, or improper installation of equipment, personal injury, and errors in provided services.
Business owner's policies may also contain business interruption insurance, which replaces lost business income in the event that a fire or other natural disaster destroys your workplace. It may also cover the additional expense of operating at a temporary location while your premises undergo repair.
Typical provisions of a dental practice business owner’s insurance policy may include:
In addition to these typical provisions, most insurance companies allow their clients to add endorsements in order to adapt a business owner's policy to meet their specific needs.
Protecting your livelihood, whether as a practicing dentist or as a practice owner, means planning for the unexpected. As the owner of a dental practice, that means being prepared for equipment failure, property damage, or legal claims; and a business owner’s policy tailored to your profession is the strong foundation you need.
For peace of mind, you may want to consider other coverage types that might fit the unique circumstances of your practice. Download our complimentary Practice Owners Guide to Business Coverage to learn more, including information about:
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.
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