When it comes to dental indemnity, the two common coverage options commonly available to dentists are either offered by mutual defence organisations (MDOs) and those provided by insurance companies. In this blog, we will explore the differences between these two types of coverage, including their benefits and drawbacks, to help you make an informed decision.
Medical Indemnity offered by Mutual Defence Organisations:
MDOs are membership-based organisations that provide tailored dental indemnity insurance and support to their members.
In the UK, there are several well-known MDOs that cater to the needs of dental professionals. These include Dental Defence Union (DDU), Dental Protection also known as Medical Protection Society (MPS), Dental Defence Society (DDS) and the Medical and Dental Defence Union of Scotland (MDDUS). Here are some key points to consider:
- Discretionary Nature: One notable disadvantage of MDOs is their discretionary status, which means they have the authority to refuse or withdraw cover at any point. This discretion can cause uncertainty for dental professionals, as they may not have absolute assurance of coverage when they need it most.
- Higher Costs: Due to their discretionary nature and the additional support and services they offer, MDOs often have higher overhead costs, which can translate to higher costs for dental professionals seeking coverage.
- Limited Control in Claim Resolution: With MDOs, dental professionals may have less control over the process of defending or settling a claim. Decisions regarding legal strategy and settlement offers are typically made by the MDO, potentially leaving dentists with less say in crucial aspects of their case.
- Limited Flexibility: MDOs typically offer a set of standard policies, which may not meet the specific needs of all dental professionals.
- Lack of FCA Regulation: MDOs are not regulated by the Financial Conduct Authority, which means their policies may have less transparency and oversight.
Professional Dental Indemnity provided by Insurance Companies:
Indemnity insurance offers a different approach to coverage. Consider the following points:
- Flexibility: Insurance companies offer a range of policies with varying levels of cover allowing dental professionals to choose a policy that suits their individual requirements.
- Regulatory Oversight: Insurance companies are regulated by the Financial Conduct Authority, ensuring policies adhere to strict standards and providing assurance of a high level of protection.
- Competitive Premiums: Insurance companies operate under a different business model, focusing solely on providing insurance coverage. As a result, they often have more streamlined operations, which can result in more competitive premiums for dental professionals seeking coverage. This affordability can be particularly advantageous for dentists looking to manage their overhead costs effectively.
Choosing between dental indemnity offered by insurers vs MDOs requires careful consideration. Remember, securing robust professional indemnity coverage is essential for safeguarding your dental career and ensuring peace of mind. Unlike MDOs, Dental Defence League does not have any discretionary element to its offering. Our coverage is contractually binding, providing you with the assurance that your indemnity will not be refused or withdrawn at any point. We understand the unique needs of dentists because our team includes dental professionals. This firsthand knowledge allows us to tailor our offerings specifically for dentists. Additionally, our brokerage team has been actively involved in putting the policy together, ensuring that it meets the exact requirements of the dental profession. With the Dental Defence League, you can trust that you are getting comprehensive coverage backed by a team who truly understands your needs as a dentist.
