Dental Malpractice: Does Dental Malpractice Insurance Cover Lapses, Gaps or Prior Acts?

As a dental professional, the right liability coverage can be critical for protecting your finances, reputation and livelihood. Understanding how dental malpractice insurance may or may not apply during a gap in coverage, after a policy lapses or when a claim arises from past services may be of particular concern. Mikel's Insurance Services is here to offer guidance regarding these potentially confusing scenarios.

How Policies Handle Prior Acts

Dental malpractice policies can be written as a claims-made or occurrence policy. If you have claims-made coverage, it will generally apply when the claim is reported while the policy is active and the incident in question occurred on or after its retroactive date. Meanwhile, an occurrence policy may cover allegations filed after a policy lapses, as long as the incident in question occurred while coverage had been active. In either case, a claim that arises from treatment provided before a policy’s effective or retroactive date will typically not be covered.

What Happens During a Coverage Gap

A lapse in coverage creates a window of exposure. If a claim is filed during that gap, or if your new policy does not include a retroactive date that reaches back far enough, you may face that claim without coverage. Dentists who close a practice, take leave or switch carriers should address this risk before any gap occurs.

Key Coverage Options to Discuss With Your Agent

When acquiring dental malpractice insurance or revisiting your current policy, consider asking about the following:

• Prior acts coverage, which can extend coverage to a specified retroactive date
• Tail coverage, or an extended reporting endorsement, which allows claims to be reported after a policy ends
• Nose coverage, offered by a new carrier, to provide prior acts coverage for incidents from before your switch

Protecting Your Practice Over Time

Contact Mikel's Insurance Services to review your dental malpractice coverage and find a policy suited to your needs.