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The New Dental Practice Insurance Checklist: 6 Policies to Consider

2026-08-21

The New Dental Practice Insurance Checklist: 6 Policies to Consider
Photo: Gustavo Fring / Pexels

A practical guide to the 6 essential insurance policies for new dental practices, with cost ranges and steps to get covered.

Starting a dental practice means juggling clinical care and business operations. One of the most critical business tasks is securing the right insurance. Without proper coverage, a single lawsuit or accident can wipe out your savings. This checklist covers the six policies every new dental practice should consider, with realistic 2026 cost ranges and concrete steps to get covered this week.

1. Professional Liability (Malpractice) Insurance

This policy protects you if a patient claims injury or harm from your treatment. It covers legal defense costs, settlements, and judgments. Most states require it, and malpractice claims can exceed $100,000, so this is non-negotiable.

  • Cost range: $5,000-$12,000 per year for a new practice, depending on location, coverage limits, and claims history.
  • Key terms: Look for “claims-made” vs. “occurrence” policies. Claims-made covers claims during the policy period, but you may need tail coverage. Occurrence covers incidents during the policy period regardless of when the claim is filed.
  • Action step: Get quotes from 3-4 carriers like The Dentists Supply Company (TDSC), MedPro, or Professional Solutions. Compare limits of $1M/$3M (per claim/aggregate) as a baseline.

2. General Liability Insurance

This covers bodily injury and property damage that happens in your office, such as a patient slipping in the waiting room or a visitor tripping over equipment. It also covers advertising injuries like defamation.

  • Cost range: $500-$1,500 per year for a small practice.
  • Coverage limits: Typical limits are $1M per occurrence and $2M aggregate. Some landlords require higher limits.
  • Action step: Bundle general liability with your business owner’s policy (BOP) for a discount. Ask your insurance agent for a BOP quote that includes this coverage.

3. Business Owner’s Policy (BOP)

A BOP bundles general liability, property insurance, and business interruption coverage into one package. Property insurance covers your equipment, furniture, and leasehold improvements. Business interruption covers lost income if you have to close temporarily due to a covered event, like a fire.

  • Cost range: $1,000-$3,000 per year, depending on your location, building value, and equipment.
  • What it covers: Equipment breakdown, theft, and loss of income. It does not cover professional liability or cyber liability.
  • Action step: Get a BOP quote from a commercial insurer like Hiscox, Travelers, or The Hartford. Provide an inventory of your dental equipment and estimated building value.

4. Workers’ Compensation Insurance

If you have employees, most states require workers’ comp. It covers medical expenses and lost wages for employees who get injured on the job. Dental offices have risks like repetitive strain injuries and needle sticks.

  • Cost range: $500-$2,000 per year per employee, depending on your state’s rates and your claims history. Dental assistants and hygienists have higher rates than dentists.
  • Action step: Contact your state’s workers’ comp board for requirements. Get quotes from a workers’ comp specialist like EMPLOYERS or AmTrust.

5. Cyber Liability Insurance

Dental practices store sensitive patient data, including health records and credit card numbers. A data breach can cost thousands in notification, credit monitoring, and fines. Cyber liability covers these costs and legal fees.

  • Cost range: $500-$1,500 per year for a small practice with basic coverage.
  • Coverage limits: Look for $1M in coverage, which is common. Ensure it includes breach response, forensic investigation, and business interruption.
  • Action step: Check if your BOP includes cyber coverage; if not, buy a standalone policy. Get quotes from providers like Chubb, CNA, or Coalition.

6. Employment Practices Liability Insurance (EPLI)

This covers claims from employees, such as wrongful termination, discrimination, or harassment. Even if you have an HR manual, lawsuits can happen. EPLI pays for defense costs and settlements.

  • Cost range: $500-$1,500 per year for a small practice with 5-10 employees.
  • Coverage limits: Typical limits are $500K-$1M per claim.
  • Action step: If you have employees, add EPLI to your BOP or buy standalone. Some insurers offer it as an endorsement.

Checklist: Steps to Get Covered This Week

  1. Inventory your risks: List your equipment value, number of employees, and patient data handling.
  2. Get quotes for professional liability: Contact 3-4 carriers and compare coverage and cost.
  3. Bundle general liability and property: Ask for a BOP quote from a commercial insurer.
  4. Check state requirements: Verify workers’ comp and malpractice requirements with your state dental board.
  5. Assess cyber risk: Review your patient data storage and get a cyber liability quote.
  6. Review your BOP for EPLI: If not included, get a standalone quote.

FAQ

Q: Can I skip workers’ comp if I’m a solo practitioner with no employees? A: Yes, in most states you don’t need workers’ comp if you have no employees. But if you hire even one part-time hygienist, you likely need it. Check your state’s rules.

Q: What’s the difference between claims-made and occurrence malpractice policies? A: Claims-made covers claims filed during the policy period, so you need tail coverage when you leave. Occurrence covers incidents that happened during the policy period, even if the claim is filed later. Occurrence is more expensive but offers long-term protection.

Q: How much coverage do I need for general liability? A: Most practices carry $1M per occurrence and $2M aggregate. Your landlord or state may require higher limits, so check your lease.

Q: Can I get a discount for bundling policies? A: Yes, bundling general liability, property, and business interruption into a BOP often saves 10-20% compared to buying separately. Ask your agent.

The Bottom Line

Insurance is a fixed cost that protects your practice from catastrophic financial loss. The six policies above are the core coverage every new dental practice should consider. Start with professional liability and a BOP, then add cyber and EPLI as you grow. Get quotes this week, compare coverage, and work with an independent agent who understands dental practices. The cost is a small price for peace of mind.