Updated Dec. 06, 2024: In the last year and a half, seven of the top 12 property insurers that were operating in California have either placed new restrictions on where they do business or stopped selling new policies entirely. CDA continues to hear from members whose policies are not being renewed by their current carriers and has learned that at least one carrier has made the decision to non-renew policies for the dental practice category as a whole. Read on for more background and options for navigating insurance transitions.
Aug. 24, 2023: In a significant development that has caused ripples in the insurance landscape in California, several prominent insurance carriers have announced that they will no longer offer property policies in the state. More recently, this disruption hit the small business market when another prominent carrier announced it would cut business owner policies in California and would not renew current policies beginning later this year.
Through The Dentists Insurance Company, the California Dental Association has heard from members who received non-renewal notices from their business owner insurance carriers. Members who rely on these policies to protect their practices and investments are concerned. In the wake of these announcements, CDA reminds members that they continue to have access to business owner coverage through TDIC.
Regulatory shifts, increased risk exposure drive insurers’ decisions
The decision by certain insurance carriers to phase out business owner policies in California is driven by a complex mix of factors, including evolving market conditions and increased risk exposure. These carriers cite the increased risk of wildfires due to climate change and high construction costs as major factors in their decision. As a result, dentists who have traditionally relied on these policies to safeguard their practices and assets are now faced with the challenge of finding alternative insurance solutions.
Absence of coverage can leave dentists vulnerable to financial loss
The discontinuation of business owner policies can have significant implications for dental practice owners. These policies typically provide coverage for property damage, liability and other critical aspects of a practice's operations. The absence of such coverage can leave dentists vulnerable to financial losses stemming from unforeseen events, accidents or legal claims.
Moreover, securing new insurance coverage with a looming policy discontinuation can be a daunting task. The changing insurance landscape may result in increased premiums or reduced coverage options, adding to the uncertainty that practice owners are already facing.
TDIC offers CDA members reliable insurance options
CDA members have exclusive access to insurance coverage — including business owner policies — from TDIC. Because TDIC protects only dentists, members benefit from dedicated expertise, risk management guidance and products designed to meet their unique needs at every stage of practice.
TDIC’s experts have a specific understanding of the type of coverage needed to safeguard the specialized equipment and premises of dental practices. Replacement cost value is factored uniquely for dental equipment. TDIC offers coverage and limits for any stage of practice, plus up to 24 months of protection for covered practice interruptions. Dentists may save on their Commercial Property policy if they have closed-end water systems or if they qualify for a multi-policy discount.
Founded by CDA member-dentists during a time when the dental malpractice market was experiencing skyrocketing premiums to give members access to affordable insurance options, TDIC has a long history of providing consistent protection in periods of market disruption.
California dentists with coverage questions can contact TDIC
If you are a California dentist who is facing the discontinuation of your current insurance policy, TDIC Insurance Solutions advisors are available to answer your questions. You can schedule a policy review with a knowledgeable advisor or request a free, no-obligation quote online.
By leveraging the resources and expertise offered by CDA and TDIC, dental practice owners can navigate transitions with more confidence and resilience in an ever-evolving insurance landscape.