Dental labs manufacture customized dentures, crowns, bridges and orthodontic appliances for use by individual patients. Owners of dental labs provide this important service for dentists and orthodontists as well as supervise the work of lab technicians, obtain and use expensive equipment, and employ a high degree of professionalism and expertise.
If you own a dental lab, you need customized business insurance in order to protect your business and your employees from the unexpected events that can cause financial ruin for any small business.
Owners of dental labs, as well as the dental professionals and patients they serve, face numerous risks to their own businesses. If you own a dental lab, here are just a few of the risks your business is exposed to:
You need a comprehensive set of dental lab insurance policies to help you protect your business, your employees and your customers.
Dental labs need business insurance to protect against the risks to property and individuals that they face every day. You need a variety of dental lab insurance policies to ensure that you have no gaps in coverage.
Commercial property insurance protects dental labs from the costs associated with physical damage to equipment and property on their business premises. This type of coverage reimburses you if your building and its contents are damaged or destroyed by fire, smoke, hail, wind, vandalism, theft and other unforeseen causes of loss. It protects your tools, materials and equipment if they are damaged, so business property coverage is essential even if you lease your lab space.
Commercial property policies may also include coverage for business interruption, which helps you pay for continuing expenses if you cannot operate for a period of time after a covered loss. If you have a fire in your dental lab while using heat to prepare a dental appliance, you may suffer a significant loss of property. If you must close or relocate while repairs are made to your lab or equipment, business interruption coverage reimburses you for lost income, ongoing expenses (rent, salaries, etc.) and even relocation expenses after a covered property loss.
Commercial general liability is an essential business insurance policy for any business, including a dental lab. It protects your business if you or an employee damages another person’s property or injures a third party. It covers the costs associated with lawsuits, including your legal defense, court costs, settlements and judgments.
Certain small businesses qualify for a business owners policy (BOP). This is a customizable policy bundle that includes affordable property, liability and business interruption coverage in one convenient policy. Your independent insurance agent can help you determine if you are eligible for a BOP.
You also likely need product liability coverage. Product liability insurance covers a business’s financial responsibility for losses or injuries to a user, buyer or bystander caused by a defect or malfunction of a product. In some instances, product liability insurance may also cover you for defective design and failing to warn a buyer of a particular danger.
Any company that participates in bringing a faulty product to market can be sued. Given that your dental lab produces dental devices for personal use, you have a significant product liability exposure. If you are sued for manufacturing a faulty product, the medical costs, compensatory damages, economic damage, attorney fees and court costs can be insurmountable.
Your CGL policy might cover some product liability claims, but that coverage may be limited and insufficient for your needs.
Imagine the consequences if your lab did not perform the work it promised, was negligent in its manufacturing practices or provided incomplete, incorrect or poorly made products to the dental professionals who hire you. Any mistake you make can cause substantial financial injury to a dentist or orthodontist as well as financial and physical harm to patients.
Professional liability insurance, or errors and omissions (E&O) insurance, is an essential policy for a dental lab. If you make a mistake or are somehow negligent in the services you provide — causing harm to a dentist or a patient — you can be sued and held liable for damages.
Your dental professional liability policy should be tailored to your unique exposures and written to address the specific risks your business faces. In general, it will protect you if you are sued for negligence or mistakes in your work. Even if the lawsuit is without merit, it will help you pay for your legal defense, court costs, attorney fees, settlements and court-ordered judgments.
Without this coverage, your personal assets could be at risk.
You may need several other dental lab insurance policies to ensure that you have comprehensive coverage.
Dental labs are unique businesses that serve a very specific purpose. To find the best business insurance policies that meet your budget, contact a local Trusted Choice® Insurance Agent, who can obtain a variety of quotes from reputable insurance companies that specialize in dental lab insurance. Together, you can evaluate and choose the combination of coverage and price that will best protect your business assets.
When comparing insurance company proposals, be sure that you are comparing equal coverage. Using an apples-to-apples approach to coverage comparisons is the only way to make sure you are choosing wisely.