Whenever a student or new dentist inquires about the cost of malpractice insurance, we typically make reference to an automobile purchase. How much does a car cost? Well, that depends - new or used, compact or SUV, economy or luxury. The same principles apply to malpractice insurance - you can receive the quality that you pay for.
Is everyone charged the same amount of premium?
The amount of premium for a dentist can differ based on a wide variety of factors including, but not limited to the following:
Location (state, county)
Past claims experience
Specialty (oral surgeon vs. general dentist vs. specialist)
Procedures (anesthesia, extractions)
Coverage differences for policy type (occurrence vs. claims-made) and limits
Why do different companies charge different premium amounts?
Accurately pricing a malpractice insurance policy requires expertise and specialization. An insurance company tries to differentiate between the risks posed by potential insureds and properly price the dentist’s malpractice exposure. Variation in premiums could occur for a variety of reasons including a varying opinion in the risks or exposure.
How do premium rates change over time?
As a new dentist, some companies will offer you a significant discount for the first few years. Thus the premium you see for your initial policy may be drastically different from your premium in future policy years. In addition, if you select a claims-made policy, the premium will also increase for the first five years until your rate matures. Once you have been in practice for five years your rate will reach a “mature” stage where your rate will stabilize.
