Cyberattacks, Natural Disasters, and Weird Employees: How to Properly Protect Your DSO

Hello everyone! Have you ever watched the news and thought, “Oh geez, what if that happens to me?” Whether it’s tornadoes in the heartland, wildfires out west, or hurricanes on the East Coast, the threat of natural disasters can be overwhelming. Add to that the unpredictable actions of people, such as a malpractice insurance claim or a cyber-attack that holds your offices hostage, and it’s enough to make your head spin. That’s why today, we’re going to talk about how insurance can mitigate risk and help you sleep a little better at night.

My Journey into Insurance

Let me take you back to the beginning of my journey. As a child, I didn’t dream of becoming an insurance agent, putting on a red State Farm jacket, and playing office. No, I wanted to be a doctor. I aspired to help people and make a difference in my community. But there was one tiny problem – the sight of blood made me queasy. So, I had to find another way to contribute to the well-being of others without the risk of fainting in the process.

This is where insurance comes into the picture. You might wonder, why insurance? Well, I figured I could help people while indulging in fancy dinners and high-powered negotiations. So, I went to college and got my business degree in risk management and insurance. I made a pivotal decision – to find a niche and help grow a smaller brokerage. I chose dentistry. At the time, dental schools had a 50/50 female-to-male graduate ratio. Dentists are well-educated and, in most cases, very reasonable. I joined my current firm 20 years ago and found my niche. Some of my clients started buying multiple practices, and I began working with their legal teams to set up programs to protect their DSOs. Now here I am, the largest dental malpractice broker nationally with over 10K clients.

The Importance of Specialized Insurance

Over these years, I learned two fundamental truths: (1), no one wants to deal with insurance until something goes wrong. It’s not fun to talk about; it costs money, but everyone hopes it’s all in place when needed. And (2), in DSOs of almost all sizes, being “in charge” of commercial insurance is nobody’s designated job. Often, it’s a hot potato that gets passed from one person to the next.

Let’s talk about the first truth. No one wants to deal with insurance, so they trust their insurance broker. But who is their broker? As a DSO or group practice grows, they often pick an insurance broker out of a phone book, let each office keep their own, or use someone they went to school with.

Why DSOs Need Specialized Brokers

Now, let’s dive into why DSOs need to hire a brokerage that specializes in DSOs. DSOs face unique risks and challenges that are quite different from other businesses. From malpractice claims to professional service agreements, the spectrum of potential issues is vast. A specialized brokerage understands these nuances and can tailor coverage to meet specific needs, ensuring comprehensive protection.

Consider this scenario: An associate dentist in your DSO faces a lawsuit from a patient. The lawsuit doesn’t just name the associate; it also names the DSO. Now, imagine the DSO doesn’t have a group policy and relies on associates to carry their own insurance, sometimes even reimbursing them for it. But what if the associate didn’t keep their policy active or had lower coverage limits than necessary? Who do you think the client and their attorney will go after? They will target the deeper pockets, which in this case is the DSO.

And when it comes to a jury deciding on damages, they will also aim for the deeper pockets, meaning the DSO is at significant risk. This is why understanding the importance of entity coverage, vicarious liability, and additional insured status is crucial. A specialized brokerage will ensure that the DSO itself is protected, the professional corporations are named correctly, and vicarious liability is in place, not just relying on individual associates’ policies. This kind of comprehensive risk management can prevent catastrophic financial losses and protect the DSO’s reputation.

Designating a Dedicated Insurance Manager

Equally important is designating a staff member to supervise commercial insurance. In many DSOs, the responsibility for insurance is fragmented: HR handles the employee benefits, compliance handles the medical malpractice, while the Operations team handles the property insurance, leading to gaps in coverage and inefficiencies. By assigning a dedicated person to manage insurance, DSOs can ensure that their policies are up-to-date, claims are handled promptly, and risks are continually assessed.

This role is not about paperwork; it’s about being proactive in risk management. For instance, regular audits and updates to coverage can prevent costly oversights. Semi-annual check-ins with the broker ensure that the DSO’s insurance strategy aligns with its overall business goals.

The Peace of Mind that Comes with Proper Insurance

Why does all this matter? Because insurance is not just about protecting against potential losses—it’s about peace of mind. When a DSO knows it has the right coverage and a dedicated person managing it, it can focus on what it does best. This peace of mind translates into better service for patients, a more secure business for practitioners, and ultimately, lower premiums for having fewer claims.

In essence, by investing in specialized brokerage services and designating an insurance controller, DSOs are not just protecting their assets; they are building a foundation for sustainable and scalable growth.

I hope you have a newfound appreciation for the role of insurance in the success of DSOs. There’s so much that’s not in your control, like natural disasters, cyber-attacks, and employees who just plain do weird things. We’re here to help you navigate the unthinkable and ensure that everything runs seamlessly.

And who knows, maybe one day you’ll get as fired up about insurance as I am. But if not, that’s okay. Just remember to use someone who is!

Ready to hire a broker who specializes in DSOs?

Dentist Insurance Services is here to help. With competitive rates and policies tailored specifically for your DSO, we ensure comprehensive coverage to protect your practice and your team.

For questions about group policies email Carrie Millar or call/text (850) 681-2996. To get a quote on coverage, visit our website.