MediCruit - Practice overheads insurance

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Practice overheads insurance
Staff within your practice may have income protection (or Permanent Health Insurance) to cover their own loss of earnings, but this might not offer the practice itself support.

Practice Overheads Insurance is a policy, which offers financial support in the absence of partners, associates and any other key member of the practice. Following a claim, the selected weekly benefit can be used to cover the fixed business overheads expenses such as:
  • Salaries and wages
  • Utility bills
  • Equipment Rental
  • Rent/Loan payments

The difficulty comes when calculating the amount of benefit required. You need to take into consideration the individuals overall contribution to the practice income, the proportion of that individuals expenses as well as any continuing income which will be received during their absence.

Like the Locum Cover, this type of policy can also cover the costs of additional overtime by other staff members who look to fill the gap left by the absent member of the team.

With a private dental practice you do have the choice of how you deal with an absence of a key member in the way you feel is the most beneficial to the practice. Typically, private practices opt for practice overheads insurance to provide cover for the insured dentist’s proportion of the businesses fixed expenses. With shorter periods of absence, private practices sometimes prefer not to go through the process of employing a locum.

Once again when purchasing a new practice, whether you are an NHS or Private practice, many finance companies and banks require either Locum Insurance or Practice Overheads cover as a pre-condition of any loan or a mortgage.
Posted by: Anne Barker on
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