Even insured dental practices face uncovered risks. While most dentists carry malpractice and general liability, gaps often appear in areas like cyber exposure, employment-related claims, and equipment failure. These gaps can lead to costly disputes, denied claims, or regulatory violations, especially in high-compliance regions like New York, Connecticut, and New Jersey.
Refine Risk helps dental practices see where they are most exposed and to build a protection plan that closes the gaps before they become liabilities.
How Coverage Mistakes Happen
Sometimes it’s due to policy exclusions, outdated limits, or assumptions made during setup. Insurance mistakes are not always obvious.
A practice may appear well insured but still be vulnerable to:
- Employee lawsuits
- HIPAA-related cyber claims
- Denied property damage claims
- Business interruption exclusions
Understanding these blind spots is the first step toward resolving them.
Mistake # 1: Assuming Malpractice Covers Everything
The risk: Dentists often believe their malpractice policy is a catch-all. But it only covers treatment-related claims.
What’s missing:
- Patient slip-and-fall injuries (requires general liability)
- Data breaches (requires cyber liability)
- Employment disputes (requires EPLI)
What to do: Audit your current malpractice policy to confirm what is and isn’t included. Then structure complementary coverage for other operational risks.
Mistake # 2: No Cyber Liability for Patient Data
The risk: Practices rely on third-party software to manage appointments, billing, and health records. If that system is breached, the practice not the software vendor, is liable.
What’s missing:
- Ransomware coverage
- HIPAA violation protection
- Legal and patient notification support
What to do: Choose a cyber liability policy tailored to dental PHI, even if your software is marketed as HIPAA-compliant. Compliance does not equal immunity from liability.
Mistake # 3: Inadequate Property and Equipment Coverage
The risk: Many dental offices underestimate the replacement cost of equipment or assume their landlord’s policy covers everything.
What’s missing:
- Imaging, sterilization, or lab equipment
- Losses from electrical surges or mechanical breakdowns
- Custom cabinetry, signage, or tenant improvements
What to do: Conduct a replacement cost assessment. Make sure equipment breakdown and property endorsements reflect your actual inventory.
Mistake # 4: No Coverage for Employment-Related Claims
The risk: A single claim of discrimination, retaliation, or wrongful termination can cost tens of thousands to defend. These claims are not covered by general or malpractice policies.
What’s missing:
- Legal defense for employment disputes
- Settlements for harassment or wage-hour claims
- Protection during layoffs or staff changes
What to do: Add Employment Practices Liability Insurance (EPLI) and update it annually based on team size and risk level.
Mistake # 5: Missing or Limited Business Interruption Coverage
The risk: If your office shuts down due to a covered event, lost revenue may not be reimbursed unless you’ve structured business interruption correctly.
What’s missing:
- Income replacement during closures
- Relocation or temporary workspace expenses
- Losses from utility failures or building access issues
What to do: Review your policy’s waiting periods, exclusions, and payout limits. Include dependent property and utility endorsements if needed.
Mistake # 6: Workers’ Compensation Gaps for Small Teams
The risk: Some practices assume part-time or family-member staff don’t require workers’ comp. In NY, NJ, and CT, that’s incorrect.
What’s missing:
- Coverage for assistants, hygienists, or admin staff
- Claims for repetitive stress or needle-stick injuries
- Protection from state penalties for noncompliance
What to do: Confirm your state’s requirements and audit staff classifications annually.
Local Claims Examples
Westchester County: A shared dental suite faced a cyberattack through a third-party scheduling tool. The primary leaseholder was liable. Cyber and HIPAA coverage was used to settle patient notifications and vendor disputes.
Fairfield County: A pediatric dentist suffered equipment failure from a power surge. With no equipment breakdown endorsement, the claim was denied. We helped restructure their property policy.
NYC: A midtown practice expanded its team without updating EPLI. A former hygienist filed a discrimination claim. The practice had to self-fund the settlement.
How to Audit and Resolve Insurance Gaps
- Review all active policies annually
- Compare actual practice risks to what’s listed in policy language
- Ask about exclusions, waiting periods, and outdated classifications
- Engage a specialist advisor to structure and benchmark your coverage
Why Dental Practices Trust Refine Risk
We help dentists in New York, New Jersey, and Connecticut:
- Avoid high-cost gaps through detailed risk review
- Align insurance coverage with licensing, lease, and operational needs
- Stay compliant while protecting patient, staff, and financial continuity
Coverage gaps aren’t always obvious, but they can be costly. A well-structured insurance plan protects more than your license. It protects your practice, your people, and your long-term goals.
Start with a policy review from Refine Risk. We’ll help you identify exposures and build clarity into every part of your coverage.