Taking Inventory to Safeguard Your Practice

Take a quick moment to reflect on your practice. Imagine the space — the patient lounge, reception area, operatory and back office. Now, consider all of the many moving parts that come together to make your practice function — computer systems, phone systems, delivery systems, digital imagery, autoclaves and the list goes on and on. Lastly, name each piece of equipment you own, including the model number, serial number, purchase date and estimated value. Not so easy, is it?

Relying on memory alone to recount your business assets is an exercise in futility. While most dentists have a general idea what they own and how much it’s worth, not all have a thorough, detailed inventory of their office contents. Unfortunately, failing to document all items of value can lead to a shortage of insurance coverage should a loss occur.

The Importance of Inventory

The Dentists Insurance Company reports many cases in which dentists have failed to conduct accurate inventories of their office contents and subsequently did not purchase enough coverage. In one case, a dentist purchased only $580,000 in coverage for a practice with 12 operatories, which had a value of at least $1.2 million — not including the value of the reception area, break room or sterilization room. In another case, the building in which a dentist housed her practice suffered a fire, and while her property was unaffected, she was forced to relocate. But with four operatories and 1,600 square feet, her $287,000 coverage was hardly enough to rebuild her practice in a new location. 

Waiting until after a loss occurs to conduct an inventory can slow down the claims process and dentists risk inaccurate reimbursements due to unaccounted for and overlooked items. Conducting thorough inventories preemptively avoids additional and unnecessary stress following a loss. Being proactive, rather than reactive, results in a smoother claims process and a reimbursement amount more in line with the true value of the loss.

Options for Documenting Inventory

While a manual method or spreadsheet can suffice, taking inventory of your property has never been easier with apps and software designed especially for this purpose. Tools marketed for conducting home inventories can also work well for documenting business personal property. Many walk users through the process step-by-step, storing the information securely online.

Here are two popular options for digital property documentation (not endorsed by TDIC): 

• NAIC Home Inventory. Developed by the National Association of Insurance Commissioners, one of this apps useful features is the barcode scan, which will automatically fill in an item’s serial number if you hover your phone over the barcode. You can also add multiple videos or images to each entry, which is handy when listing items in bulk.
• Encircle. An app designed to inventory home belongings, Encircle’s intuitive, photo-based interface can also be used to quickly and accurately take a visual inventory for a small business. Both mobile and desktop accessible, data can be exported to PDF or Excel. The home inventory app is free on the App Store and Google Play.

The quickest way to create an office inventory isn't be using an app or spreadsheet. Simply taking a walk-through video of your practice can be an efficient way to document it's contents. While it may not have the robust detail of other digital documentation options, risk management analysts agree that some documentation is better than none. If all you have time for now is a video of your practice, that will suffice until you have the capacity to do more.

Finding Resources and Support

Ensure your practice — and everything in it — is taken into account. Failing to document all contents can lead to stress and frustration should a loss occur. Taking complete and regular inventories of your office contents allows you to purchase the coverage that’s right for you and ease the process of filing a claim.

 As a TDIC policyholder, you can refer to your declaration insert to determine your individual policy’s coverage limits. To make adjustments, contact a TDIC advisor who can work with you to assess the value of your office’s contents and develop a coverage plan that ensures you are not under- or over-insured.

Concerned about the increasing threat of wildfires? TDIC’s Risk Management experts have created a wildfire resource page to aid policyholders in understanding coverage, preparing practices and safely responding to disruption caused by wildfires. Contact TDIC to review your coverage options or learn more about managing your risks. Additional information on preparing for an emergency can be found on the Federal Emergency Management Agency website.

TDIC’s Risk Management Advice Line is a benefit to TDIC policyholders. To schedule a consultation with an experienced risk management analyst, visit tdicinsurance.com/RMconsult or call 1.877.269.8844.