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Monthly Archives: March 2015

Entity Coverage on Dental Malpractice Insurance

Most Florida dental practices are structured as a corporation or professional association. Vicarious liability exposure occurs when the dentist or dentists operate as an entity separate from themselves. If only one dentist is involved in the practice, this vicarious liability exposure is very small, and can be added to the individual dental malpractice insurance policy. When there is more than one dentist involved in the practice, however, the exposure is greater. In this case, the practice needs to purchase a separate entity policy, to cover the dental entity and its employees for malpractice insurance lawsuits. Coverage is also provided for the entity’s vicarious liability resulting from the acts or omissions (malpractice) of the dental affiliates working on behalf of the entity.

Normally, the entity and the dental affiliates maintain the same limits of liability to avoid one becoming the deep pocket for the other in a dental malpractice insurance claim. Entity policies are not issued with liability limits greater than the limits of the dentists who practice under the entity.

The cost of the dental malpractice insurance entity policy is based on the number of dentists involved in the practice and the nature of their individual dental malpractice insurance coverage. If a separate entity policy is issued, the practice is protected for exposures of current and past dentists. So, if a dental affiliate leaves the practice, and a dental malpractice insurance suit is brought against the entity at a later date, there is coverage. The entity is also protected if it is the only defendant named in a dental malpractice insurance claim.

John Gracey Backer, CPA

John Gracey Backer, CPA, is the Treasurer of Gracey-Backer, Inc., an Insurance Agency in Delray Beach, Florida specializing in All Lines of Malpractice, Professional and Personal Insurance for the Healthcare Provider. He can be contacted at 800-272-6055 ext 128, or at

Healthcare Providers Scramble for Cyber Liability Insurance

It used to be that doctors, dentists and other healthcare providers were not too concerned about cyber attacks. That was something that happened to the Targets, Anthems, JP Morgan Chases and Home Depots of the world—not to small physician offices. But things have changed, as cyber hackers zero in on patient health information (PHI) as a treasure trove of privacy information that can be sold on the black market.

What has caused this change of heart and this rush by doctors to purchase cyber liability insurance? Mainly the hack of health insurer Anthem, Inc.’s computer system, a breach disclosed in early February 2015 and affecting up to 80 million customers. In this attack, Social Security numbers and other vital health information were stolen. According to the reports, because cyber liability insurance was in place, the financial blow to the company was minimized.
According to insurance analysts, spending on cyber liability insurance nearly doubled in 2014 from 2013, to about $2 billion.

Cyber liability insurance policies for physicians and surgeons and dentists cover a wide range of losses, including fixing computer networks, tracking down the hackers, notifying affected customers and defending against litigation, as well as public relations campaigns to restore the reputation of a medical or dental practice. In addition, most policies have a risk management component, to help prevent a cyber attack in the first place.

The cost of cyber liability insurance varies according to the size of the practice, the extent of the coverage, the value of the data at risk, loss history, and the strength of internal defenses. Gracey-Backer, Inc. offers a cyber liability insurance policy for only $463 per doctor. We also offer more comprehensive and complex policies for larger medical and dental practices. Our cyber liability insurance specialists can guide a physician, surgeon, oral surgeon or dentist toward a tailor made program.

Barbara Gracey Backer

Barbara Gracey Backer is the Vice-President of Gracey-Backer, Inc., an Insurance Agency in Delray Beach, Florida specializing in All Lines of Professional and Personal Insurance. She may be contacted at 800-272-6055 X118 or at

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