May/June 2019 | Page 26

Risk Management: The occupational demands of practicing clinical dentistry are unlike any other occupation. Physically, dentists must contort their necks, backs, shoulders, arms, wrists and hands for prolonged periods of time. They are also required to engage in repetitive tasks requiring fine manual dexterity, fine motor skill, grip strength and gross motor function. This is all done while utilizing needles, sharps, drills and other dental instruments in the confined space of a patient’s mouth. The occupational demands are further compounded by need for unimpaired cognitive and executive function, as well as visual acuity. Given these occupational demands, “minor” medical conditions can render a dentist “totally disabled” from practicing clinical dentistry. While these medical conditions might be a “mere inconvenience” to other professionals, given the occupational demands, they can prevent dentists from practicing with requisite skill to ensure patient safety, forcing them to cease practicing. The consequences of becoming disabled can be devastating if a dentist lacks the proper financial planning. Specifically, studies indicate that 38 percent of disabled dentists will struggle to pay their normal living expenses within three months of losing their occupational income. 3 These studies also indicated that approximately 65 percent of disabled dentists will be unable to pay their normal living expenses within one year of becoming disabled. 4 Financial advisors traditionally recommend that professionals obtain disability insurance that provides a net benefit equal to 60 percent to 70 percent of their gross earnings. While this general rule accounts for the applicability of tax consequences, it does not address the unique nature of dental partnerships and the potential financial impact on a dental practice should a partner become disabled. 24 MAY/JU NE 2019 | P EN N S YLVA N IA D EN TA L J O UR N A L The importance of understanding your policy definition of “Own Occupation” coverage: The strength of a dentist’s disability coverage is determined by the policy provisions. IDI products, if purchased correctly, provide dentists with access to the best available coverage. A common issue of confusion arises when discussing “Own Occupation” coverage. Traditionally, there are three tiers of “Own Occupation” coverage: 1) “True Own Occupation”, 2) “Modified Own Occupation” and 3) “Limited Own Occupation.” All three of these products are marketed and sold as “Own Occupation” policies; however, these products do not provide equal coverage. It is common for dentists, like my client, to confuse their “Own Occupation” coverage with “True Own Occupation” coverage. As my client learned, this common mistake can leave dentists with significantly less coverage than anticipated. “True Own Occupation” Coverage is designed and marketed to provide a dentist with 100 percent of their disability insurance benefit if an injury or sickness prevents them from working in their occupation. The dentist is entitled to this benefit, regardless of their ability to work in another occupation. The full disability benefit remains payable, even if the dentist pursues another occupation generating significant income.