Discretionary vs insurance-backed cover – know the difference and you’ll protect not just your career and finances, but your health too
Featured Products Promotional FeaturesPosted by: Dental Design 17th December 2022
Indemnity insurance is a requirement for all dental professionals in the UK but, as is often the case with insurance, many say they don’t have the time – or inclination – to shop around. Also, it can seem more complex than it is. Along with business, management and leadership skills, it is a topic often not taught, or taught in enough detail, at dental school.
If you don’t understand the differences between the types of cover available, what the terms mean and how they would apply in practise, know that indemnity insurance is too important a topic to not get to grips with, sooner rather than later. Without the right cover in place, when you need it most, you could be risking your reputation, finances, livelihood and mental health. When you protect and nurture your emotional wellbeing, you can cope better with life’s ups and downs.
Imagine a scenario when you realise another type of insurance is inadequate – an incident involving your car, or pet for example, and the stress to discover you aren’t covered for X, Y or Z. Insurance is one of those things that people often don’t give a second thought to, until they need it. They’ll renew their policy, after skimming the detail, and risk being unprepared for something that comes out of the blue. Most practices have a story about a patient who seemed happy when they left and their treatment went smoothly – then you receive a letter, requesting their records and scans. We are a more compensation-minded society than we ever were; we’re told it’s easy to make a claim, with law firms advertising their services on a no-win, no-fee basis. There are plenty specialising in dental claims too, encouraging unhappy patients to pursue a pay-out if they believe they were misdiagnosed, given incorrect or inappropriate treatment and/or care, or the dentist failed to spot something.
But before you even start looking at providers, you’ll need to know the difference between discretionary and contract cover.
Discretionary cover
If you have this, legal and financial assistance will be provided at the discretion of the provider, such as a mutual defence organisation, or MDO. An MDO is a not-for-profit organisation, owned by its members. The decision to provide support will be considered on a case-by-case basis and this, they say, gives them flexibility. It also means support can be declined. Discretionary policies don’t state specifics either, another reason why providers like MDOs may say this makes them responsive and adaptable, because gaps and grey areas don’t exist in imprecise wording.
It’s fair to say that a discretionary policy with a MDO is the ‘traditional’ way that dental and other medical professionals have protected themselves. So, you may not have questioned whether your policy is suitable for this modern era, and the kind of dentistry you or your practice delivers.
Insurance-backed, contract cover
More dental professionals are choosing insurance-backed contractual cover for this reason alone – peace of mind. Regulated by the Financial Conduct Authority (FCA), as a policy holder you will see what is and isn’t covered defined, clearly, comprehensively and concisely. This means more confidence too, and flexibility as policies can be tailored. For example, what if you have only started placing and restoring dental implants in the last year? Your indemnity must protect you as and when your scope of practice changes.
Contract certainty also means a legal obligation to pay out, as per the terms of your policy. So, there is a surety of compensation, which will go some way to protecting your mental health in the event of a claim. Leading specialist insurance and indemnity provider Howden offers polices with contract certainty, so you can be reassured of support, advice and the right people on your side when you need them most. This is high-quality insurance and, if your matter does proceed to a dental claim, you’ll have a top tier legal practice representing you. You will also get access to a mental wellbeing helpline if the claims process is leaving you feeling stressed, anxious and struggling.
The differences between the types of dental indemnity are too important not to know! Learn what they are, to ensure you’re adequately protected in this modern era. With the right cover, you will be taking care of your career, your finances and your emotional wellbeing too.
For more information or to contact team, please visit www.howdengroup.co.uk or call 020 3918 912.
Howden Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority in respect of general insurance business. Registered in England and Wales under company registration number 725875. Registered Office: One Creechurch Place, London, EC3A 5AF
