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Will You Need It for Your Dental Practic?


Imagine if your thriving dental practice had been destroyed in a natural disaster and it was your family's primary source of income. How do you earn income in a community that has been claimed a disaster area? How will you pay your employees their salary when they're not working? How do you pay for the leased property and equipment that is no longer operable. These are all questions that may be overlooked when insuring your dental practice.

Consider the many dental practices that were affected by the recent natural disasters in the Gulf Coast. Sure their business structures may have been protected by insurance under some type of flood damage or hurricane rider policy, but what about the income their business lost in the last several months due to evacuating and rebuilding? This is why your dental practice needs to have business interruption insurance.

Business interruption insurance is property insurance that compensates for lost or reduced business income due to hazardous (i.e. hurricane or tornado) damage. It can also compensate for the extra expenses of setting up a new or temporary office and operating expenses such as utilities, salaries, rents, taxes and benefits for key employees.

Business interruption insurance cannot be purchased separately but is purchased in addition to the hazard insurance rider on the policy. When purchasing this type of insurance, it is important to consider how long it will take to rebuild your practice, including the time you may need to obtain permits, equipment and hire new employees.

A file can't be submitted for business interruption until the business has been out of commission for 36 to 72 hours. Most typical policies will cover a business from one month up to a year for services non-rendered, but they can be negotiated for longer time periods. Be prepared to show the insurance agent documents that support your business' income and expenses. This will help to expedite process handling.

Oftentimes, we attempt to plan out everything almost perfectly, in order to run our businesses on a day-to-day basis. In doing so we overlook things that may prevent us from running our business all together. It's easy to take situations like this for granted when we're rarely confronted with them, but it's much easier to cope with a crisis when you've prepared for the worse.