In the past five years we have seen the emergence of many new Dental Indemnity providers which has meant more choice and more competitive premiums which is great news. However, in that same time we have seen a worrying trend in individuals being provided with poor insurance advice and being left with gaps in insurance coverage.
Failing to have adequate indemnity coverage in place could be hugely damaging to an individual’s career and reputation.
For the past 10 years we have championed insurance backed indemnity. Being one of the first indemnity providers to offer ‘Claims Made’ and ‘Claims Occurrence’ coverage we pride ourselves on Diligent, Impartial and Transparent advice.
Unfortunately, very few of the new indemnity providers can provide both ‘Claims Made’ and ‘Claims Occurrence’ coverage. In most cases these providers only promote the benefits of the cover they provide. This is where we are often seeing poor advice and the consequential loss or gaps in coverage.
Firstly, let’s look at the difference in the two types of coverage and the very basic insurance fundamentals that drive the price.
What is ‘Claims Made’ Insurance Cover
‘Claims Made’ cover means that cover is only in force whilst the policy is in force. When the policy ends the cover ends unless of course alternative arrangements are made. Your policy may include ‘Run Off’ coverage, but this is usually only limited to retirement, death, and disablement circumstances.
When you switch providers from a ‘Claims Made’ policy you need to ensure that any new provider gives retroactive (backed – dated) cover to ensure you are left with no gaps in cover. We are seeing several providers limit the retroactive cover to just two years which in a lot of cases is insufficient as the statute of limitation period is longer than this.
Generally, ‘Claims Made’ cover is cheaper because it is easier for the insurer to limit the claims exposure. For instance, if the underlying insurer decided to exit the market and stopped providing indemnity cover to dentists, they could do this quickly. After all, once the policy ends coverage ends meaning no long-term exposure for that insurer.
What is ‘Claims Occurrence’ Insurance Coverage
‘Claims Occurrence’ simply means that if cover was in place at the time of the negligent treatment cover will remain in place even when the policy has ended.
‘Claims Occurrence’ cover is usually more expensive. This is because even when the policy ends the insurer remains liable for any potential claim for for that insured period. Unlike ‘Claims Made’ the insurer cannot limit potential claims exposure overnight.
The importance of transparent advice
Simply one solution does not fit all; price is of course an important factor, but it should not be at the risk of your career or reputation which is why truly transparent and accurate advice is imperative.
Whether you are an All Med Pro client or not we will provide a no obligation Indemnity Health-check. Simply complete the form below and we will provide you with tailored guidance around your needs.
Have a look at an independent website called Insurance & Indemnity for more information.