Pre-Paid ERP (Extended Reporting Period) Endorsement: A big dilemma for DSOs is whether they should have a claims-made policy or an occurrence policy. The claims-made policy typically requires an Extended Reporting Period (ERP) or "tail coverage" to cover claims made after the policy's expiration. Occurrence policies can require mature dentists to have to purchase “tail coverage” before joining the group. This endorsement not only supports the recruitment of experienced professionals but also leverages the advantage of an occurrence policy, eliminating the need to purchase tail coverage when associates leave. This feature prevents potential compliance issues, simplifying administrative processes and ensuring continuous coverage without added financial or paperwork burdens.
Location-Specific Policy Restriction endorsement for Associate Dentists: Implementing a location-specific policy clause restricts associate dentists from practicing outside the designated office(s) covered by the policy. This provision ensures that the insurance coverage applies only to services rendered within the DSO's approved practice locations, minimizing risks associated with outside moonlighting activities and maintaining control over the scope of coverage.
Separate Entity Limits for the Corporation: Establishing separate entity limits for the corporation is crucial. This ensures that the DSO's corporate entity has its own distinct coverage limits, protecting its interests and assets separately from individual dentists.
Vicarious Liability Endorsement- Vicarious liability coverage for individual dentists not explicitly scheduled on their policies is a must for all DSOs. This inclusion is paramount as it shields the organization from potential legal and financial repercussions arising from the actions of these non-scheduled dentists. By extending vicarious liability coverage, the DSO mitigates risks associated with the provision of dental services by affiliated dentists, ensuring that in the event of malpractice claims or allegations, the organization's assets and reputation remain safeguarded.
Customizing a malpractice insurance policy involves understanding the unique needs and risks of a DSO. Working with an experienced insurance broker specializing in dental malpractice insurance can help tailor a policy that meets the specific requirements while addressing potential liabilities and risks.