4 Things You Need to Review Before Renewing Your Office Insurance

By FDA Services

FDA Services (FDAS), a wholly owned subsidiary of the Florida Dental Association (FDA), is an insurance agency created for and benefiting dentists. We work tirelessly to secure the best carriers and lines of insurance dentists need throughout their careers. FDAS provides the best coverage at the most affordable prices with incomparable customer service.

It’s important that FDA members and FDAS clients are aware that the property insurance market in Florida is hardening. This means that coverages are more difficult to find, coverages are reducing and prices are significantly increasing. What should dentists do? FDAS recommends reviewing the following four things:

1. Deductibles
Most office insurance policies in Florida will have two deductibles: a wind deductible and an “all other perils” (AOP) deductible.

  • Wind deductibles have been increasing each year, so it’s important you know how they work. They often are stated as a percentage. This means they are a percentage of the coverage amount, and not the loss. For example, if your wind deductible is 5% on your $350,000 building, then in the event of a hurricane your deductible is $17,500.
  • Usually, the AOP deductible is a set dollar amount. It’s typically a range from $500 up to $5,000.

2. Business Income Limits and Length
Business income covers lost revenue in the event of a physical loss to the practice. In recent years we have seen an increase in the number of caps and deductibles put on this coverage. Following are some samples and explanations. 

  • Fraction Deductible: Often listed as 1/3, 1/4, 1/6 or 1/12, this is the monthly cap on coverage. Since most business income claims are in the first few months before repairs can be finished, it is best to have no deductible or the largest one, 1/3. For example, if your business income has a stated amount of $500,000 and 1/3 deductible, the cap on monthly payment is $166,676 each month until you meet your limit. However, if you had $500,000 but a 1/12 deductible the monthly cap is $41,667.
  • Time Deductible: Instead of a fraction deductible, some policies pay actual loss sustained with no cap on monthly limits. However, the period of payout can be capped. If your policy is six months Actual Loss Sustained, then in the event of a triggering claim, the carrier will pay for business income up to six months if repairs are still being made. The cost to repair/rebuild from major losses can take much longer, so be aware that business income will be cut off after that time period.

3. Utility Services Coverage
Utility Service Coverage, also referred to as off-premises power coverage, covers businesses from property damage and loss due to utility services, originating away from the premises of the insured property and caused by a covered peril. Several years ago, this coverage was standard but due to a large number of claims in the past few years, carriers are deleting or capping this coverage. There are two parts to this coverage and you should research to determine if you have both.

  • Direct Damage: Coverage for damage or loss to your covered property if caused by the utility failure. For example, lightning strikes at a nearby electrical transformer, creating a power surge that causes your operatory light to explode.
  • Time Element: Covers business income or extra expense to cover a loss of income due to the suspension of business because of the interruption in your utility. For example, a fire at the power plant causes an outage at your office preventing you from opening/treating patients for a week.

4. Property and Building Values
The point of insurance is to have coverage for your practice in the event of a covered loss. The insurance carrier will only pay up to your policy limits. With construction costs rising drastically and supply chain shortages, it is important to reevaluate your REPLACEMENT COST limits annually (replacement cost does not factor in depreciation). If your practice was 100% lost in a fire, how much would you really need to rebuild at today’s costs?

Beware of co-insurance clauses: This insurance is not like health insurance. More property policies are including co-insurance clauses in the policy. These are stated as a percentage, usually 80%, 90% or 100%. It is essentially a penalty for not having enough insurance. This reduces your limit amount if the co-insurance requirement is not satisfied.  

Have questions or want more information? Our experienced staff is ready to get to work for you — call or text 850.681.2996 or email insurance@fdaservices.com to connect to our agents today. 

Book Review: Cephalometry in Orthodontics: 2D and 3D

Reviewed by Dr. Alan E. Friedel

Cephalometry in Orthodontics: 2D and 3D was written as an aid for Orthodontists but it is also an exceptional book which can be of value to any dentist interested in a more comprehensive understanding of 2D Cephalometric radiographs and CBCT (3D) radiographs. The chapters are arrayed in a logical progression, and are easily understood and put into useful context.

The first three chapters lay the foundation for what follows. They provide historical perspective, beginning with a review of our understanding of human skull growth and development in the time period before radiology. Much of this knowledge was anecdotal, but some put us on the path we are on today. Up until recent times 2D Cephalometric radiography was all that was available. Radiologists had to learn how to stabilize the skull and take views that would be both reproduceable between patients and for a single patient. This began a more scientific approach to Cephalometry.

Visit floridadental.org/member-center/publications/book-reviews to read the full review.

New Year, New Skills for Your Dental Assistants

Help your dental assistants attain their 2023 professional development skills by enrolling them in the  FDA’s MyDentalRadiography online program. Getting them started is fast and easy. First, you create an account at mydentalradiography.com/FDA and complete the brief supervising dentist tutorial so you understand your responsibilities. Then, purchase a voucher for the 9-unit educational program and assign it to your dental assistant. The student will receive an email with log-in information and a link to the training site.

Once the online training is complete and a comprehensive test is passed, the student exposes a full-mouth series of radiographs including four bitewings under your supervision. If you’re satisfied with their work, you sign the certificate of completion. Then the assistant applies to the state for licensing. Eliminate all the barriers to training with this Florida dental board approved affordable, online alternative. Vouchers cost just $285 for FDA members and $385 for non-members.

Contact Lywanda Tucker at 850-350-7143 for more information or click here to get started.

Relentless Positive Action

By FDA Executive Director and CEO Drew Eason

There’s that person. The one who shows up with nothing positive to say. The comments are about how bad the weather is or how awful other drivers were on the way to the office. The person might go on to complain about work, politics, body aches and pains, etc. We all know that person. Sometimes, we are that person.

I decided a long time ago that I was going to do all in my power to be relentless about being positive about whatever action I needed to take. Relentless positive action. I even had a bracelet made to remind me of my commitment to positivity. I’ve been doing it for a long time and have gotten a reputation for being a positive person. And I benefit personally.

Being positive is believed to have many health benefits*:

  • Increased life span.
  • Lower rates of depression.
  • Lower levels of distress and pain.
  • Greater resistance to illnesses.
  • Better psychological and physical well-being.
  • Better cardiovascular health and reduced risk of death from cardiovascular disease.
  • Reduced risk of death from cancer.
  • Better coping skills during hardships and times of stress.

Additionally, people enjoy the company of those with a positive approach. We’ve all had instances where we are getting split into teams to tackle an issue and you might find yourself thinking “please, please don’t put me on Sam’s team.” Why? Because you know Sam will complain the entire time. “This exercise is stupid and won’t change anything.” Followed with multiple eye rolls. No one wants to work with a person like that. The alternative? Working with others who are ready to tackle the future with optimism and a positive approach. That’s the breakout group you see talking, smiling and even laughing as they work through the assignment. That’s the group where I want to be.

Sometimes, positivity can be mistaken for weakness. It is not. Being positive isn’t being cheery and pretending problems don’t exist. It’s more about a person’s overall perspective in life and a tendency to focus on the good in it. I know where problems are, and I address them. I just don’t do it in a negative way. It would be wrong to assume a positive person isn’t willing to address a problem or doesn’t see it. It is more likely he or she knows that being negative would likely just make things worse or, at a minimum, make the situation even more uncomfortable.

Need some examples of what a positive attitude looks like?

  • Enjoying the unexpected, even when it’s not what you wanted originally.
  • Smiling and being friendly to those you don’t know.
  • Being the one who joins a meeting with a friendly greeting and hello, looking others in the eye.
  • Being happy when someone else succeeds.
  • Complimenting others – even strangers.
  • Not talking badly about others.
  • Be as consistently positive as you can. No one wants to guess what version of you they are going to get each day.
  • Tell someone they did a great job.
  • Don’t let those who are negative bring you down.
  • Have a good time…even when you are losing.
  • And, again, smile.

The world is full of challenges. We hear negative messages all day via social and other media. Choose to be a leader by being positive and setting a tone for others to follow. Do it relentlessly as you move your practice, office or association into action to address the challenges of the day. Relentless Positive Action

*Mayo Clinic Staff (https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/positive-thinking/art-20043950)

Anyone interested in a reminder to be positive can request an FDA Relentless Positive Action bracelet! Simply email Kelsey Simmons at ksimmons@floridadental.org.