REAL PRACTICE STORIES. REAL INSURANCE LESSONS FROM DENTAL ASSURED
Case Study 1: A Practice Insurance Renewal Review That Revealed More Than Expected
Is your insurance really giving you the protection you think it is?
Insurance renewals can often feel like a straightforward process: the renewal arrives, the premium is reviewed, and the decision comes down to whether the price looks reasonable.
But what if the information your policy is based on is no longer accurate?
One dental practice owner approached Dental Assured, Dental Innovations’ insurance partner, shortly before renewal to get a second opinion on their existing insurance arrangements.
At first glance, everything appeared to be in order. The practice had been insured for years and the renewal was already underway. However, after taking the time to understand the practice and how the business had changed, it quickly became apparent that some of the information being used by the insurer was no longer accurate.
During the review, it was discovered that the turnover recorded on the policy was more than double the practice’s actual turnover. This was contributing to a higher insurance cost, but the more concerning issue was found within the practice’s Business Interruption cover.
The practice’s insurable gross profit figure was significantly understated compared with the business’s true exposure.
When the numbers don’t tell the whole story
Underinsurance is one of the common issues that can become apparent at claim time. If a major event such as a fire or other incident forced the practice to close, an incorrectly calculated Business Interruption sum insured could leave the business facing a significant shortfall in its insurance recovery.
Dental Assured worked closely with the practice to review its financial information and ensure the sums insured properly reflected how the business operated today, rather than relying on outdated information that had simply carried forward from previous renewals.
The review also identified another potential gap.
The practice’s Statutory Liability cover had been arranged as a small extension within its business insurance policy. While this type of extension can provide a level of protection, it may not provide the breadth of cover available through a dedicated Management Liability policy.
After discussing the practice’s specific risks, Dental Assured recommended replacing the extension with a standalone Management Liability policy. This provided broader protection across areas including statutory investigations, employment-related claims, tax audit costs, crime and fraud-related events, as well as social engineering and cyber-enabled payment fraud.
The outcome
The final insurance program cost more than the practice’s previous arrangement.
But the objective wasn’t simply to find a cheaper premium. It was to make sure the practice had insurance that accurately reflected its business and provided the protection it expected.
The turnover figures were corrected, Business Interruption insurance was increased to a more appropriate level, and the practice received significantly broader protection through a dedicated Management Liability policy.
Most importantly, the practice owner had greater confidence that their insurance program was properly aligned with the business – and would be there to respond if they ever needed to make a claim.
The takeaway for your practice
An insurance renewal shouldn’t just be a conversation about price.
Practices change. Turnover changes. Staffing changes. Equipment and assets change. The way a practice operates can change significantly from one year to the next.
Yet sometimes the information used to arrange the insurance simply gets carried forward from the previous renewal.
That can mean you’re paying for cover you don’t need, while potentially leaving gaps in areas where you do.
A renewal review can uncover these issues before they become a problem – because claim time is not the time to discover that your policy doesn’t provide the protection you thought it did.
Don’t simply renew. Have it reviewed.
Your insurance renewal may look straightforward, but a renewal is the perfect opportunity to check whether your cover still reflects your practice, your assets and the risks you’re actually exposed to.
Small changes to your practice, equipment, turnover, premises or circumstances can mean your policy no longer provides the protection you expect. And comparing premiums alone doesn’t tell you whether you’re adequately covered.
Dental Assured specialises in understanding the unique insurance risks faced by dental practices and can review your renewal to help you understand exactly what you’re paying for and whether your cover is still right for your practice.
Take the First Step
Simply complete the short Dental Assured renewal review form, attach your renewal, and their team will be in touch to discuss your requirements.
Complete the Renewal Review Form
Or, if you’d prefer to speak to someone directly:
Call William on 0447 784 755
Email: william@dentalassured.com.au
A few minutes now could give you greater confidence in your cover for the year ahead. Don’t renew until you’ve had it checked.