Have you experienced problems obtaining liability insurance?
The ADA News reported Aug. 5 that conditions in the courts, including higher jury awards on malpractice claims, and the downturn in the economy have led to a smaller dental professional liability insurance market.
As a result, according to the ADA Council on Members Insurance and Retirement Programs, professional liability insurers are applying more stringent underwriting criteria than in the past. Dentists who have experienced multiple claims or even single claims of "significant severity" may find it difficult to renew existing coverage or obtain a new policy.
When September JADA readers were asked if they have experienced problems obtaining liability insurance, 30 percent of respondents said yes. Some said that their carrier discontinued dental liability coverage, while others mentioned that their claims history may have been the deciding factor. "I was dropped by my insurance company; I had one claim in 12 years," said one respondent.
"After 38 years of coverage and only one claim during that time, my insurance company would not renew my policy, citing the one claim as the reason why," said another.
Seventy percent of respondents said they have not experienced problems obtaining liability insurance. Several said they had never filed claims, and others said they have had no problems at all obtaining insurance. "I practice in south Florida and have been solicited by three different companies," said one. "It doesn’t seem to be a problem to get insurance."
Others said they have noticed that their premiums are rising and that "liability insurance companies are asking many more questions to determine their risk."
A few readers told about plans they see as working well. "The oral surgeon society formed its own insurance company: AAOMS National," said one.
Others said they go through their constituent dental societies to find an insurer. "I have always gone with the carrier my dental society endorses, and everything has worked out fine," wrote one.
The ADA Council on Members Insurance and Retirement Programs has noticed a significant increase in the number of members using the directory of professional liability insurers on ADA.org ("www.ada.org/members/prac/manage/liability/directory/states.asp") to review coverage options in their states. The directory includes links to 33 insurance companies throughout the United States, many of which offer online rate quotations, coverage descriptions and access to dental risk management libraries.
Rita Tiernan, the Council’s manager, program administration, suggests that dentists whose coverage has been dropped should contact a licensed insurance agent in their state to discuss available company alternatives.
"We recommend dentists act promptly in evaluating their options and apply to more than one insurer whenever possible," said Ms. Tiernan. "Depending on the claims history, dentists also may want to contact an underwriting company that will consider ‘nonstandard’ risk applicants."
