Page 28 - Bulletin Vol 27 No 3 - Sept. - Dec. 2022 Final 2_Neat

Article |Five Things to Consider in Choosing a Dental Malpractice Insurance Carrier

By Al Anthony Mercado, Esq.

As a dentist you work hard to maintain a successful practice and deliver excellent dental services to your
patients. Unfortunately, in the litigious New York malpractice environment, there is a good possibility that
you will eventually face a dental malpractice claim. Similarly, legislation such as Lavern’s Law and the
pending Grieving Families Act expands the time to sue for malpractice and recoverable damages. The best
initial way to protect yourself against a dental malpractice claim is to choose the right malpractice carrier.
Below are five basic things to assist you in choosing the right dental malpractice insurance carrier.

1. Claims Experience: a dental malpractice insurance carrier’s presence and experience in New York
state, and especially in your local area, is extremely important to the handling of malpractice
claims. Knowledge of the litigious New York malpractice environment including the laws, courts,
judges, attorneys, and damage values is especially important to successfully defending a dental
malpractice claim. Presence alone is not enough, look at how long an insurance carrier has been in
New York state insurance market and their claim results.

2. Financial Strength, Stability and AM Best Rating: Financial strength and stability is another key
consideration is choosing the right dental insurance carrier. You certainly do not want to learn of
your insurance carrier’s financial instability while facing a claim of malpractice. Financial strength
and stability can demonstrate an effective history in handling past claims as well as the ability to
successfully defend future claims.

A key indicator of an insurance carrier’s financial strength in the market is its AM Best rating. AM
Best is a global credit rating agency specializing in the insurance industry. When an insurance
carrier has a superior AM Best rating of A+ or better, it is a strong indication of its stability and
strength in the marketplace. Although it should not be the only factor when evaluating an
insurance carrier’s financial strength and stability, it should be a primary consideration in choosing
the right professional liability insurance carrier.

3. Insurance Policies, Discounts & Cost: The two Cs, “Choice and Cost” are two considerations when
choosing an insurance carrier. Some specific considerations include:

• Availability of claims made and occurrence policies
• Availability of consent and non-consent to settle policies
• Availability of coverage for professional entities and employees
• Availability of various discount programs, like the first-year young dentist discounts

You should keep two sayings in mind when considering cost: “penny wise, pound foolish” and “an educat-
ed consumer is the best customer.” Cost is an important consideration but should not be the only one.
When comparing costs make sure that you are getting the same protection and services
4. Risk Management Education and Services: malpractice claims begin during the treatment of a pa-
tient. Education and training on risk mitigation strategies have been shown to be effective tools for den-
tists to avoid claims and/or lower damages. In addition, the availability of an insurance carrier’s legal team

28 | Nassau County Dental Society ⬧ www.nassaudental.org