Practice Management Insurance: A Necessary Evil (Part II)

Insurance: A Necessary Evil (Part II)

By: Joe Strunk, Owner/CEO of 3000 Insurance Group Property/General Liability Insurance tips to help reduce “gaps” in coverage. Property and General Liability insurance is usually provided as a Business Owners Policy (BOP). No two BOPs are the same; however, they provide similar types of insurance: Property, Liability, and Business Income. The language in the BOP and the endorsements (extras) can mean the difference between covered and denied claims.

Limits of Insurance Tips

Issue – It is imperative to review your BOP for the following coverages, placed in order of importance, based on the knowledge of insuring dentists for more than 50 years. Solution – Many of these coverages cost very little and can help when a claim occurs. We try to include them in all our dental practice BOPs. The list is not comprehensive, but it certainly hits many of the most critical gaps in coverage. • Water/Sewer Backup – It is no secret there is a lot of water in a dental practice. It is common for a drain to back up, causing significant property damage. This coverage is usually limited or not included at all unless added.

• Hired & Non-Owned Auto – Most dental practices have employees who may use their vehicles for business purposes.

Your dental practice could potentially be named in a lawsuit or claim if an employee has an accident while running the business’s errands in their own car.

• Employee Dishonesty – This is a top five claim in dental practices.

Regrettably, it is common for employees to find themselves in situations where they can’t resist stealing from their employer.

The limits on this type of insurance usually vary from $25,000 to $100,000 or more.

• Employment Practices Liability – This provides insurance for negligence and allegations related to employees: harassment, wrongful termination, and/or discrimination. The limits on this type of insurance vary from about $100,000 to $250,000. We strongly suggest a separate policy with higher limits. • Cyber Liability – Some BOPs offer limited coverage for Data

Breach; however, we believe a separate Cyber Liability policy is crucial in today’s world. Cyber claims are rapidly becoming a top 10 claim that occurs in a dental practice. Data Breach is not comprehensive enough to cover the numerous threats a dental practice faces today. • Employee Benefits Liability – If your practice offers benefits (Health Insurance, 401K, etc.), this coverage provides protection if you fail to offer benefits to an employee, and they suffer damages as a result. • ERISA Bond – If you have a retirement plan in your dental practice, an ERISA Bond is required with a limit equal to or greater than 10% of the value of the assets in the plan, up to a maximum of $500,000.

• Increased General Liability Limits – While all BOPs have General

Liability, we strongly encourage higher limits. In almost all cases, we use a $2,000,000 General Liability limit. The increased cost of $2,000,000 is generally less than $50/year for each practice location.

• Overhead Transmission Lines – Some BOPs allow coverage for

Overhead Transmission Lines. We are all aware of the damage ice storms can cause to overhead power lines. This coverage can help recoup losses when your dental practice cannot see patients due to loss of power. This coverage allows the Business Income portion of your policy to cover this type of claim in some cases.

Risk Management Tip

Issue – I am unsure if my current BOP has the recommended coverage above. Solution – If you have your BOP with 3IG, there is a good chance we have addressed these issues in your policy. We are also happy to review your existing BOP and tell you what gaps need to be “filled” if you are not insured with 3IG. Either way, feel free to contact our office and allow us to review your insurance with you. There are undoubtedly other policies that a successful dental practice needs. We addressed only the BOP in this article. We strongly encourage you to speak with us about any of the following that you might need: • Professional Liability • Corporate Professional Liability • Worker’s Compensation • Business Auto

• Commercial Umbrella

• Directors & Officers

• Flood

Oklahomans know all too well that you can never be too prepared for severe weather, but where do you turn when you need immediate relief in the aftermath of a devastating Don’t miss the following article, Insurance: Necessary Evil Part III, storm? in which we will discuss “Capturing and Retaining Employees with Help is available! The Oklahoma Dental Relief and Disaster Employee Benefits.” Grant Program (RDGP) is a charitable trust established ABOUT THE AUTHOR: to provide aid to dental professionals affected by natural Joe Strunk, owner/CEO of 3000 Insurance disasters, physical disability, chemical dependence, or other Group, started in insurance in 1997. He has hindering conditions. Over the last three years, the RDGP an engineering degree from Oklahoma State awarded $28,000 in disaster assistance to individuals and University and an MBA from the University of Oklahoma. Joe has served as the President of the Independent Insurance Association of Oklahoma dental organizations affected by severe weather. Aid is provided confidentially and without remuneration. Whether and holds designations as a Certified Insurance you are affected at home or office, contact the RDGP to Counselor, Certified Advisor of Personal Insurance, apply for immediate assistance 800-876-8890. and Certified Risk Manager. With over 25 years of experience, Joe specializes in working with The RDGP accepts tax-deductible donations from individuals professional associations and small businesses to satisfy their Property, and dental organizations from around the country to provide Casualty, Life, and Health insurance needs. aid after devastating destruction caused by tornadoes and other natural disasters across the state. Funds are awarded to dental professionals who are victimized by the storms. 3000 Insurance Group, an ODA Rewards Partner, is Additionally, the funds are used for programs like the independently owned and locally operated to handle Oklahoma Dental Foundation MobileSmiles Program to aid in your insurance needs. We offer affordable and reliable relief efforts in several Oklahoma communities. insurance choices across Oklahoma. We help you find the right combination of tailored, personalized insurance The RDGP relies solely on contributions from individuals coverage at just the right price to fit your needs.and dental foundations. The donations received help prepare & provide for those Oklahoma dentists and dental foundations in need of resources after destructive storms. The RDGP also contributes to the Oklahoma Health Professionals Program which is an outreach program Reimagining designed to support and monitor medical and allied health professionals throughout Oklahoma who are experiencing tomorrow, together difficulty with substance abuse. The services provided by the OHPP are confidential and at no cost. Services include expert consultation and intervention designed to encourage Get expert advice to help you get healthcare professionals to seek help for substance abuse where you want to go with the and behavioral concerns. If you or someone you know ADA Accelerator Series, created needs help, please call the 24-hour confidential direct line hand-in-hand with dentists like you! • Focus on your well-being with (405-601-2536). The RDGP voluntary section on the ODA resources from mental health dues statement funds the ODA’s contribution to the Health Professionals Program. organizations like NAMI Chicago and new member perk ClassPass

Whether you need help or want to • Set a course for financial success with financial expert and provide help, don’t wait! HerMoney.com CEO Jean Chatzky Contact the RDGP manager today at sfrantz@okda.org • Build your leadership skills with career coach and best selling or call 800-876-8890 author Ashley Stahl Tackle your current challenges today Tax-deductible donations to the program can be mailed to: for a better tomorrow. OK Dental Relief and Disaster Grant Program ADA.org/Accelerator 317 NE 13th Street Oklahoma City, OK 73104 For grant application and program guidelines, visit okda.org/programs/member-support/