Insurance is one of those things nobody wants to think about until they need it. But getting your coverage right matters—both to protect yourself from genuine risks and to avoid paying for policies you do not need. Here is what actually matters for dental practitioners and practice owners.
Professional indemnity: the non-negotiable
Professional indemnity insurance covers claims arising from your professional advice or treatment. If a patient alleges negligence, the policy covers legal costs and any damages awarded against you.
This is not optional. AHPRA requires all registered practitioners to have appropriate professional indemnity insurance as a condition of registration. If you are working without it, you are breaking the law and exposing yourself to potentially unlimited personal liability.
Typical cover ranges from $5 million to $20 million per claim. General dentists usually pay $1,500-$4,000 annually. Specialists pay more because higher-risk procedures mean higher premiums.
Major providers include Dental Protection, MDA National, MIPS, and Guild Insurance. Shop around— premiums and coverage details vary.
Public liability
Public liability covers injuries to patients or visitors that are not related to your clinical treatment. A patient slips in your waiting room. A visitor trips on a cable. A child injures themselves on furniture. These are public liability claims, not professional indemnity.
Standard cover is $10-20 million. Cost is typically $500-$1,500 per year, and it is often bundled with business insurance packages.
Business insurance (for practice owners)
If you own a practice, you need coverage beyond your personal professional indemnity.
Contents and equipment insurance covers your dental chairs, X-ray units, CBCT machines, computers, sterilisation equipment—everything that would cost money to replace if stolen, damaged by fire, or destroyed by flood. Replacement value matters here; insure for what it would cost to buy equivalent new equipment, not the depreciated book value.
Business interruption insurance covers lost income if you cannot operate. If a fire closes your practice for three months, this policy pays your rent, wages, and a proportion of your normal revenue while you cannot see patients. It is often undervalued until people need it.
Business insurance packages typically cost $2,000-$6,000 annually depending on your equipment value and coverage levels.
Other coverage to consider
Workers compensation is mandatory if you have employees. It covers workplace injuries to your staff. Premiums vary by state and are typically calculated as a percentage of your wage bill.
Income protection is personal insurance that pays you if illness or injury prevents you from working. This is not practice insurance—it protects your personal income regardless of practice ownership. Highly recommended but often overlooked.
Cyber insurance is increasingly relevant. Dental practices hold sensitive patient data. A ransomware attack or data breach can be expensive to manage. Cyber policies cover response costs, notification requirements, and sometimes business interruption from cyber events.
Key person insurance matters if your practice depends heavily on one person (often the principal). If that person cannot work for an extended period, the policy provides funds to keep the practice running or cover revenue losses.
Associates vs owners: what do you need?
If you are an associate, your minimum requirement is professional indemnity insurance. Check whether the practice provides this under their policy or whether you need your own. Having your own policy provides portability and ensures you are always covered, even between jobs.
Income protection is also worth considering as an associate—your income stops if you cannot work.
If you own a practice, you need the full suite: professional indemnity, public liability, business insurance (contents, equipment, interruption), workers compensation if you have staff, and consider cyber and key person coverage depending on your situation.
Common mistakes
Underinsuring equipment is common. People insure for book value rather than replacement cost, then discover after a loss that their payout does not cover a new machine.
Assuming practice coverage protects associates personally. If you are named in a claim, you want your own policy, not reliance on someone else's.
Forgetting to update coverage when you buy new equipment or expand. Your five-year-old policy may not cover your new CBCT machine.
Ignoring cyber cover because "we are too small to be a target." Small practices are often easier targets precisely because their security is weaker.
Common questions
Do I need PI insurance if I only work part-time?
Yes. AHPRA requires all registered practitioners to have appropriate professional indemnity insurance regardless of hours worked.
What is "claims made" coverage?
Most professional indemnity policies are "claims made"—they cover claims made during the policy period, regardless of when the treatment occurred. This means you need continuous coverage and may need "run-off" cover when you stop practising.
Does my ADA membership include insurance?
ADA membership includes some benefits and access to group schemes, but not comprehensive professional indemnity insurance. Check exactly what is and is not covered.