As a Practice Owner there are a range of insurance covers specific to operating a business.
Your premises, equipment and practice fit-out are all a part of your business assets. Loss, damage or theft would financially impact upon your business. A Material Damage Insurance policy provides the cover required to repair or replace any of these.
A material damage claim event could result in your practice being closed for a period of time. Business Interruption Insurance provides cover to replace the lost gross profits and/or assist in relocation to new premises.
Regardless of a company’s size, it can become liable at any time to pay compensation for damage arising from a claim made by a third party or negligence or omission from a staff member. Liability Insurances provide cover to meet the costs.
Should you be disabled and unable to work, the revenue you generate as a practising dental surgeon would cease. Business Continuity Insurance ensures there are funds available to maintain your practice until you are able to return to work.
If you have borrowings or personal guarantees within your business, repayment of these loans and meeting these obligations in the event of death (Life Cover), Total Permanent Disability or Trauma will be required. Insurance is one method of funding these liabilities.
If there are unrelated shareholders in your company structure it is common to have a Shareholder Agreement. This agreement will invariably provide rules on the transfer of shareholding to surviving shareholders in the event of death (Life Cover) and Total Permanent Disablement. Insurance policies are likely to be the most cost effective option to fund the transfer of shares.