Running a dental practice means juggling patient care, staff management, and regulatory compliance. But here's what keeps many practice owners up at night: the question of whether they have the right insurance coverage. One malpractice claim or cyber breach can devastate a practice financially, even if you've done everything right. That's why having a comprehensive insurance checklist isn't just smart—it's essential for protecting everything you've built.
The good news? You don't need to figure this out alone. This guide breaks down exactly what coverage your dental practice needs, what's optional, and when to add specific policies as your practice grows. Whether you're opening your first practice or reviewing your existing coverage, this checklist will help you identify gaps and make informed decisions.
Essential Coverage Every Dental Practice Needs
Professional liability insurance (also called malpractice insurance) sits at the top of your must-have list. This coverage protects you when a patient claims you provided inadequate care, made a treatment error, or failed to diagnose a condition. Common claims include allegations of negligence, improper extractions, nerve damage from procedures, or complications from implants. Most leading insurers offer policies with limits up to $1 million per occurrence and $3 million aggregate annually. If you're incorporated, consider separate entity coverage so you don't have to share your liability limits if both you and your practice are named in a lawsuit.
You'll also need to understand the difference between claims-made and occurrence policies. A claims-made policy only covers incidents that happen and are reported while your policy is active. If a patient files a claim two years after you switch insurers, you're not covered unless you purchased tail coverage. An occurrence policy covers any incident that happens during the policy period, even if the claim comes years later. Occurrence policies cost more upfront but eliminate the need for tail coverage if you change insurers or retire.
General liability insurance covers non-professional risks like slip-and-fall accidents in your waiting room, property damage, or advertising injury claims. For dental practices, this typically costs around $22 per month or $259 annually. If someone trips on a loose carpet and breaks their wrist, your general liability policy handles their medical bills and potential lawsuit. Most practices bundle this with property coverage in a Business Owner's Policy (BOP) for better rates.
Workers' compensation insurance is legally required in most states once you hire employees. It covers medical expenses and lost wages if a dental hygienist injures their back lifting equipment, a receptionist develops carpal tunnel syndrome, or a team member is exposed to infectious materials. Without it, you're personally liable for these costs—and you could face hefty fines for non-compliance. The average bundled coverage (BOP, workers' comp, and professional liability) runs about $127 monthly or $1,522 yearly for dental practices.
Property insurance protects your physical assets—dental chairs, x-ray machines, computers, and office furniture. If a fire destroys your practice or a storm damages your building, property insurance pays for repairs and equipment replacement. This becomes even more critical if you own your building rather than lease space. Business interruption coverage, often bundled with property insurance, replaces lost income if you're forced to close temporarily after a covered event.
Optional Coverage to Consider as You Grow
Cyber liability insurance has shifted from optional to essential for most practices in 2025. With patient records now digitized, dental practices face heightened risk of data breaches, ransomware attacks, and HIPAA violations. A single breach can trigger regulatory fines, patient notification costs, credit monitoring services, and potential lawsuits. Claims against dental practices have risen sharply as hackers increasingly target healthcare providers with valuable patient data. If you store patient information electronically (and you probably do), this coverage deserves serious consideration.
Employment practices liability insurance (EPLI) protects against claims of wrongful termination, discrimination, harassment, or wage disputes. If you have employees, you're vulnerable to these claims even if you've done nothing wrong. EPLI covers defense costs and settlements, which can easily reach six figures. This becomes especially important as your team grows beyond a few staff members or if you're in a state with employee-friendly courts.
Commercial auto insurance is necessary if your practice owns vehicles—whether for mobile dental services, supply pickups, or staff use. Personal auto policies won't cover business use, leaving you exposed if an accident occurs during business activities. Consider umbrella liability insurance once your practice grows. This provides additional coverage above your primary liability policies, offering an extra layer of protection against catastrophic claims that exceed your standard limits.
When to Add or Adjust Your Coverage
Add coverage before you actually need it. If you're hiring your first employee, get workers' comp before their start date, not after they're injured. Planning to offer sedation dentistry or implants? Update your professional liability before performing these higher-risk procedures, as they may require additional coverage or higher limits. Some insurers won't cover you retroactively, meaning any incident before your coverage starts won't be protected.
Major practice changes trigger the need for insurance reviews. Opening a second location, bringing in an associate dentist, purchasing expensive new equipment, or changing your practice structure from sole proprietorship to corporation—all of these require coverage adjustments. Also review your policies after reaching revenue milestones. As your practice grows, your original coverage limits may no longer adequately protect your assets.
Industry changes matter too. In 2025, malpractice insurance premiums are rising with double-digit increases at some carriers due to increased claim payouts. Starting July 1, 2025, Medicare claims require ICD-10 codes on dental claim forms—a documentation change that affects billing and potential coverage disputes. Additionally, 15 states introduced dental loss ratio requirements in 2025, and CDT 2026 codes took effect January 1, 2026. Staying current with these regulatory shifts helps you maintain appropriate coverage and avoid gaps.
Annual Review Checklist Items
Set a calendar reminder to review your insurance annually—ideally 90 days before renewal. This gives you time to shop around if needed. During your review, verify your coverage limits still match your practice value. If you've added $200,000 in equipment, does your property coverage reflect that? Check whether your revenue has grown significantly, which might require higher liability limits to protect your increased assets.
Review your policy exclusions and endorsements. Are you paying for coverage you don't use? Are there gaps you've overlooked? Confirm that all current employees are covered under your workers' comp policy and that your professional liability covers all services you now offer. Document any claims or incidents from the past year, even minor ones, as they might affect your renewal rates or coverage options.
Compare quotes from multiple carriers. Insurance premiums vary widely between providers, with monthly costs ranging from $33 to $56 for similar coverage. The American Dental Association offers resources and risk management checklists to help you evaluate your coverage needs. Don't automatically renew without checking if you're getting competitive rates and adequate protection for your current practice situation.
Getting Started with Your Coverage
Start by gathering information about your practice: annual revenue, number of employees, services offered, equipment value, and current coverage details if you have existing policies. This gives insurers what they need to provide accurate quotes. Work with an agent who specializes in dental practice insurance—they understand the unique risks you face and can identify coverage gaps general agents might miss.
Don't sacrifice coverage for lower premiums. The cheapest policy often has the most exclusions and lowest limits. Instead, focus on getting adequate protection at a fair price. Ask about claims-made versus occurrence policies, tail coverage costs, defense-outside-limits provisions (meaning legal defense costs don't reduce your coverage limits), and whether your staff, volunteers, and nonlicensed healthcare providers are automatically covered.
Insurance isn't exciting, but it's the foundation that lets you focus on patient care instead of worrying about financial catastrophe. With the right coverage in place, you can handle whatever comes your way—from routine slip-and-fall claims to complex malpractice allegations. Review this checklist regularly, adjust as your practice evolves, and you'll build the protection your dental practice deserves.
