State of the Insurance Market:
2025 Outlook

Dental

The dental industry — individual dentists, dental practices and dental support organizations (DSO) — has witnessed a continued rise of insurance rates for property coverage, cyber liability, data breach, and professional liability (malpractice).

The rise in premiums correlates with the rise of costs, goods, and services in many industries. Recent claims trends have impacted the cost and availability of property and cyber coverages.

Market Conditions

 

Malpractice insurance premiums are on the rise, with some companies seeing double-digit increases due to market realizations and the increased payouts for dental malpractice claims. Additionally, state board complaints filed against dentists are at an all-time high leading to increased defense costs. Professional liability insurance policies for dentists and dental organizations are impacted by inflation just like everything else in the economy.

Cyber liability claims brought against dental practices have been on the rise due to the digitization of records and patient data. This transition to electronic records puts the dental industry at heightened risk of cyber risks in 2025 compared to any prior year. Practices should be aware of this growing risk and should be prepared to implement new safety measures to better protect their cyber exposure.

For dental offices in areas prone to catastrophic (CAT) weather events, securing property coverage could be difficult upon renewal. As major storms and other extreme weather events become more frequent, insurance carriers are seeing far greater losses than in previous years. This trend is pushing a rise in premium deductibles for property coverage.

Increased labor costs and inflation for building supplies are impacting the dental industry as well. Like most industries the consistent rise in prices on many goods and labor will present a challenge but working with a specialty broker familiar with your risks can help mitigate a rise in premiums.

Coverage Considerations

 

Carriers and their insureds will experience similar challenges in providing and obtaining coverage. Many insurance companies are increasing premiums and deductibles to account for the market changes.

Utilizing the resources available to you through risk management and working with a broker who fully comprehends your risks as a dental practice or organization will help safeguard your business and finances.

Dental Rate Forecast

 
Rate Forecast
Dental: Professional Liability +3% to +5%

Recommendations

 

Working with a dental-specific broker who has relationships with multiple carriers is vital to ensure a smooth renewal process. Since dental practices will have more than one line of coverage, there are different recommendations based on the coverage type. We suggest the following:

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Malpractice insurance
-Complete risk management courses.
-Carefully consider patient selection.

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Property insurance
- Create a policy that has deductibles that match the practice’s financial situation.
- If there is no large reserve of cash, consider selecting a plan with lower deductibles in case of a claim.

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Cyber liability and data breach
- Invest in adequate cyber training and cyber awareness for staff members
- Install multi-factor authentication (MFA) for all accounts.
- Invest in a password manager, however, do not use Google Chrome.
- If there are any changes in payments or finances, follow up with the business or individual.

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The dental industry faces specific risks that standard insurance often overlooks. Whether you're just starting out, running a practice, or managing multiple locations through a DSO, having tailored coverage is essential to protect your assets, employees, and reputation.

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The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.