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Your dentist disability insurance coverage helps protect your personal monthly income stream should you become disabled and unable to perform the duties of your profession. But what happens to your business income and expenses should you suffer an injury or sickness that prohibits you from practicing? Should you do nothing, the answer is simple: Your business income goes to zero while your expenses continue at their normal level. This equation does not work.
A business overhead expense policy is structured to reimburse you for your normal and usual business expenses while you are disabled. If you serve as an employee for another practice, clinic, medical center, or hospital, you may not need this coverage. But if you are in private practice or a partner in a multi-dentist center, you should consider having this protection.
If you are like some dentists and take a certain income while reinvesting much of your earnings in your practice, this coverage may become even more important than your personal dentist disability insurance policy. Most insurance companies use your federal tax return data to set a maximum benefit level of overhead expenses for your practice. Don't assume anything, however. Compare companies to determine the type and level of coverage you're purchasing and policy limits and maximums as compared with your overhead expenses from your prior tax year. As always, you want to purchase coverage levels that are right for you.
Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.