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. 

4 Cybersecurity Awareness Tips

FDA Services (FDAS) has seen an alarming increase in cyberattacks on dental offices in the past few years. This year has especially had a sharp increase, which is why they’ve partnered with Coalition Insurance to bring our members cybersecurity and insurance. Even if you choose not to use Coalition Insurance as your cyber insurance provider, please make sure you have this coverage in place! They recommend, at the minimum, $250 per patient record in coverage. 

Below are four cybersecurity awareness tips from our friends at Coalition:


The FDAS 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. 

Hurricane Practice Prep

We’ve all seen the dramatic effect hurricanes can have, both the initial wind and rain and the floods and devastation that follow. There are steps you can take to stay safe and reduce damage to your property in the event of a storm.

BEFORE A HURRICANE

  • Install storm shutters.
  • Remove yard debris, such as dead tree limbs, that could become flying missiles.
  • Make sure your practice communication plan is in place and ready to be put into effect.
  • Make sure you and/or employees know how to shut off utilities, including water main.
  • Look through your emergency kit to ensure it is fully stocked and up to date with necessities for preparing your practice.
  • Back up computer records and store them at least 50 miles off-site.
  • Gather important papers to take with you if you must evacuate, including inventory lists and insurance information.

DURING A HURRICANE

  • Know your community’s evacuation plan and, if asked to evacuate, do so immediately.
  • Stay inside and away from windows, skylights and glass doors. Avoid elevators.
  • Avoid washed out and wet roads that can hide downed electrical lines or underlying currents that can carry your vehicle away.

AFTER A HURRICANE

  • Water is a major cause of damage after hurricanes. The longer your house is exposed to water, the more damage you’ll see to your roof, ceiling, walls and floors, as well as any personal belongings inside. After the storm has passed, it’s important to dry out anything water damaged.
  • Open windows and doors to allow air to circulate and speed up the drying process.
  • Clean up any broken glass and remove debris.
  • Board up broken windows and doors.
  • Cover roof damage with tarps or plywood.
  • Save receipts for any temporary repair expenses.
  • Move any wet items to a dry place.
  • If possible, place any damaged items in a safe, secure area where they can be inspected later.


Content provided by Safeco Insurance.

This article was originally published in FDA Services’ Hurricane Guide, “Storm Proof.” Be prepared for the 2021 hurricane season with articles about how to prepare, loss and damage, and making a claim. Visit fdaservices.com for more information.

Are You Prepared for Hurricane Season?

June 1 is the official start of the 2021 Atlantic Hurricane Season! Don’t let that important date pass you by without reviewing your storm readiness plan and ensuring you have the right coverages in place to protect your practice. Creating an airtight plan now will give you the peace of mind to focus your attention on other challenges your dental practice may face in the coming months. 

Here are a few points to keep in mind this season:

  • Flood policies have a 30-day waiting period before they become effective.
  • Your office insurance could have some gaps that leave you vulnerable to storms (i.e., wind damage coverage). FDA Services (FDAS) can help identify and fill those gaps.
  • It is important to review the value of your building and its contents every few years to ensure that you have enough coverage.

Call or text FDAS at 850.681.2996 to review your coverage today!

2021 Hurricane Guide

Make sure you check out the 2021 FDAS Hurricane Guide, “Storm Proof,” which is full of helpful resources that will help you prepare for this year’s hurricane season with plenty of time to spare.