How much should you pay for dental insurance?

Through: dr. Luke Shapiro

I just called my insurance representative and they told me it would now cost me nearly $11,000 to have malpractice insurance in New York City! What?!

I thought I misunderstood. Is it even legal to increase malpractice by that much?

Turns out it is. They can raise as much as they want, whenever they want.

Rising insurance costs for malpractice

First, let’s take a look at why the company is doing this. Supposedly there have been a lot of lawsuits in New York City recently, and the company can’t support the claims and basically kicks all orthodontists in New York City off their insurance.

Next, let’s take a look at how they did this. The company sent a few emails and that was it! No phone call, nothing. Some orthodontists have been with this company for more than 40 years. That’s hundreds of thousands of dollars given to the company and this is how they say goodbye? A simple email?

In addition, some dentists don’t even read their email or it gets sent to the junk mail. So many orthodontists read the news on Facebook or find out via text message with a friend.


This post is not intended to taunt this malpractice insurance company, I just want to share my experience! AAOIC is the official insurance policy of the American Association of Orthodontists (AAO). I thought the AAO would try to fight for us on our behalf, but I was wrong. It’s not because the AAO doesn’t care, but that’s not how a sponsored business relationship works.

Furthermore, it seems to me that the AAO was completely unaware of this rate increase as they told us in a letter, “We appreciate you notifying us of the substantial rate increase.” How so?!? They then said, “We were equally surprised by this increase. While AAOIC is the AAO-approved partner for professional indemnity insurance coverage, it is not a division of AAO; rather, it is a separate company.”

I think there are many important lessons to be learned here and questions to ask insurance companies when deciding where to sign up.

Event-based insurance

On the other hand, if you’re a recent graduate, I highly recommend getting event-based insurance. Many employers require you to have such insurance.

If you don’t buy an event and buy claims made, there are many employers who will ask you to buy a tail if you decide to leave the practice. A tail is another sneaky way an insurance company can charge you a lot of money. A tail can cost about $20,000, depending on what business you have and how many years you’ve been working.

Finding Cheaper Malpractice Coverage

There are other companies with great offers! For example, MedPro has $50 for new grads with discounts for the first few years. If there are other companies with great prices, let us know!

I hope this helped you! I don’t want to scare you, just want to let you know what the options are! Be sure to ask the insurance companies outright if they have had any drastic rate hikes in the past or how much they typically increase each year. It will save you a lot of time and aggravation in the future!

Next one: How dental students can save for their own practice

photo by RODNAE Productions

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