Dental assistants, hygienists, front office staff, and other team members are more likely to stay with a practice that offers solid benefits. Group insurance makes your office more competitive by offering:

- Health insurance

- Dental and vision coverage

- Life and disability insurance

Result: Reduced turnover, better morale, and a stronger team.

Group plans are typically more affordable than individual policies:

Lower premiums per employee

Tax advantages for the business

Often includes better coverage for the price

Result: High-value benefits without high costs.

Group insurance premiums are generally tax-deductible as a business expense. Additionally:

Employer-paid health premiums are not considered taxable income to employees

Contributing to employee benefits can reduce your overall tax burden

Result: Financial efficiency and tax savings

When employees have health and financial protection:

- They take fewer sick days

- They’re less stressed about medical or financial issues

- They’re more focused and productive at work

Result: A healthier, happier, more efficient office.

A dental office that provides comprehensive benefits demonstrates that it:

- Values its staff

- Operates professionally

- Invests in long-term relationships

This builds a positive reputation in your community and among job seekers.

You can tailor group plans to include:

- Health, dental, and vision

- Group life insurance

- Short- and long-term disability

- Health savings accounts (HSAs) or flexible spending accounts (FSAs)

Result: You get the right coverage at the right cost.

As a dentist-owner, you can often include yourself in the group plan and receive the same benefits — potentially at a lower cost than buying individual insurance.

If you’re an incorporated dentist, you can’t normally write off personal medical expenses through your corporation. But with an HSA:

- Your corporation pays for eligible medical expenses

- You receive 100% tax-free reimbursement

- Your business claims a tax deduction

Example: Instead of using after-tax salary to pay $4,000 for braces, your corporation pays and deducts it as a business expense — saving you thousands in personal tax.

Without an HSA, you pay out-of-pocket health expenses using after-tax income. For a dentist in a high tax bracket (often 45–53%), this is extremely inefficient.

With an HSA:

- You avoid paying personal income tax on those dollars

- Your corporation deducts the expense

- No payroll taxes or CPP on the benefit

Result: For every $1,000 in health expenses, you might save $400–$500 in taxes.

HSAs in Canada can cover:

- You (as the owner)

- Your spouse

- Your children (under 21 or 25 if full-time students)

They’re especially useful for:

- Orthodontics

- Dental not covered by insurance

- Physiotherapy, massage, vision care, prescriptions

- Fertility treatments and mental health services

An HSA is a great way to provide health benefits to your team without the cost or complexity of traditional group insurance:

- You control the spending limits

- Only pay when employees make claims

- Simple setup: no premiums, underwriting, or renewals

Result: A highly appreciated benefit that supports retention and morale.

HSAs are fully recognized by the Canada Revenue Agency (CRA) under the Private Health Services Plan (PHSP) rules. When properly structured through a third-party administrator, they are:

- Legal

- Auditable

- Compliant with Canadian tax laws

Unlike group insurance:

- No fixed monthly premiums

- No paying for unused benefits

- You only pay when a claim is made

Result: Predictable, controllable costs that scale with your practice.

Even if you’re a one-person corporation, you can use an HSA. It’s one of the few ways incorporated professionals in Canada can extract money tax-free for personal health expenses.

If a partner dies or becomes disabled, buyout insurance provides the funds needed to buy out that partner’s share. This ensures the remaining partners can continue operating the clinic smoothly without needing to:

- Liquidate assets,

- Take on debt, or

- Deal with unfamiliar or unwanted heirs becoming business partners

In the event of death or disability, partners often don’t have immediate access to hundreds of thousands (or millions) of dollars needed to buy out a share of the practice. Insurance solves this by:

- Providing a tax-free lump sum (life insurance), or

- Offering ongoing income (in the case of disability buyout insurance).

Most dental partnerships have a buy-sell agreement in place — a legal contract that outlines what happens when a partner exits the business due to: Death, Disability, Retirement, or Voluntary sale.

But without funding (i.e., insurance), that agreement is just a promise. Buyout insurance ensures:

- The agreement can be executed as intended.

- There’s no financial strain on the practice or surviving shareholders.

Without insurance:

- A surviving spouse or heir could legally inherit the deceased partner’s shares.

- The remaining dentists may be forced into business with someone unqualified, uninterested, or hostile.

Buyout insurance helps ensure:

- The family receives fair market value for the shares.

- The practice retains control over ownership and operations.

Buyout insurance is often paired with a practice valuation clause, so everyone agrees on how the practice will be valued when triggering a buyout. This avoids:

- Disputes over share value,

- Legal battles, and

- Disruption of the practice.

A well-structured, insured buy-sell agreement signals:

- Professionalism,

- Stability, and

- Continuity of care for patients and staff.

It also reassures lenders and suppliers that the practice has long-term planning in place.

A dentist is usually the main (or only) source of income for their practice. If they die, become critically ill, or are disabled, revenue stops or drops drastically. Key person insurance provides a tax-free lump sum or regular payments to:

- Cover operating costs (rent, payroll, utilities)

- Hire a temporary replacement

- Retain staff while transitioning

- Stabilize cash flow

Without the key person (e.g. a principal dentist), the value of the practice can:

- Drop significantly, making it harder to sell or transition

- Create financial hardship for partners or heirs.

Key person insurance helps maintain the business so it can eventually be sold, restructured, or passed on with minimal loss of value.

If your practice has:

- Multiple partners

- Outside investors, or

- A buy-sell agreement in place

Then key person insurance gives everyone confidence that the business won’t collapse or suffer major disruption if a key dentist is no longer around.

Lenders often require key person coverage as part of their loan security. A dentist practice with key person insurance is more likely to:

- Be approved for financing

- Get better terms

- Maintain credit standing in a crisis

If a key dentist dies or is suddenly gone, staff and patients may lose trust and leave. With a financial buffer from key person insurance, you can:

- Communicate stability

- Retain your best people

- Fund patient transition strategies

Most dental practices are built around the dentist’s hands-on work. If you’re out for weeks or months due to injury or illness, revenue drops — but the bills don’t stop.

Office Overhead Insurance pays for:

- Rent or lease payments

- Staff salaries and benefits

- Utilities (electricity, phone, internet)

- Equipment leases and maintenance

- Insurance premiums and property taxes

- Office supplies and more

A sudden disability could wipe out months (or years) of savings trying to keep your office afloat. This coverage prevents:

- Dipping into personal funds

- Taking on emergency loans or high-interest credit

- Having to sell off assets or close temporarily

Result: Your practice survives while you recover.

Your staff — hygienists, dental assistants, front desk — depend on you. Office overhead insurance allows you to keep paying your employees, even if you’re not generating revenue.

This helps:

- Retain trained staff

- Avoid rehiring/retraining costs

- Maintain patient relationships

If you can’t return to work right away — or at all — overhead insurance gives you breathing room to:

- Recover without rushing back

- Explore selling or transitioning your practice

- Avoid panic decisions under financial pressure

Disability insurance protects your personal income. Office overhead insurance protects your business.

Both are critical — especially if you:

- Own your clinic

- Share a practice

- Are self-employed or incorporated

You can tailor your policy to fit your practice’s needs, with benefits typically covering 12–24 months of overhead. Some policies even offer optional benefits like:

- Replacement dentist costs (to hire a locum)

- Coverage for partial disability (if you’re only out part-time)