Why Dental Offices in Louisiana Shouldn’t Ignore Business Interruption Insurance

Dr. Nguyen didn’t expect to walk into a dark, dead-silent office on a random Wednesday morning. A transformer fire down the street knocked out power to the entire building—and worse, her dental suite had suffered smoke damage that made it unsafe for patients. The office was shut down for 10 days. No cleanings. No root canals. No income. Payroll still had to be met. Rent was still due. And while her property insurance covered the physical damage, it didn’t do anything for the thousands of dollars she lost in income.

That’s where business interruption insurance could have stepped in.

Property Coverage Protects the Building—But What About Your Income?

Every dental office has equipment, supplies, and physical space that are usually covered by commercial property insurance. But when a disaster forces you to temporarily shut down, your building might be intact while your business revenue is not.

Business interruption insurance—sometimes called business income coverage—is designed to cover the financial gap when your practice can’t operate due to a covered event like:

• Fire or smoke damage

• Storms or water pipe bursts

• Theft or vandalism

• Structural collapse

If you’re closed and can’t treat patients, this coverage can help cover lost revenue, payroll, rent, and other operating expenses until you reopen.

What Business Interruption Insurance Can Cover

Here are a few situations where business interruption insurance comes in handy!

Lost Income

This is the big one. Business interruption insurance calculates your average income and reimburses what you would have earned during the closure.

Ongoing Expenses

Even when you’re not seeing patients, expenses like employee salaries, lease payments, insurance premiums, and software subscriptions don’t stop. This policy helps keep those paid.

Temporary Relocation

If you need to rent a temporary space to see patients, this coverage may help pay for the new location, moving costs, and setup.

Loan Payments

Still paying off that CBCT scanner or office renovation loan? Business interruption insurance can help cover those payments even if your revenue stops.

What It Doesn’t Cover

While it’s a powerful form of protection, business interruption insurance doesn’t cover:

• Undocumented income (cash-only earnings with no paper trail)

• Utility outages not caused by physical damage

• Closure from pandemics (unless specific endorsements apply)

• Property damage itself (that’s what your commercial property insurance is for)

Why It Matters for Dental Offices in Louisiana

Louisiana practices face specific risks:

• Hurricane season can knock out power or damage buildings.

• Flooding might force closure, even if your equipment is dry.

• Storm-driven debris or fire can create unsafe conditions for patients.

You don’t need to lose your building to lose business income. If you’re unable to treat patients—even for a few days—it can quickly eat into your cash flow and reserves.

Dental offices run on tight schedules and patient volumes. Missing even one week can derail treatment plans, harm your reputation, and disrupt long-term patient relationships.

Real-World Scenarios Where Coverage Helps

Let's take a look at some real-world scenarios.

Example 1: A Small Fire in the Break Room

Smoke and water cleanup forces a shutdown for 5 business days. Your policy kicks in to cover lost income and payroll.

Example 2: A Tree Falls on Your Roof

A slow-moving storm drops a tree through the roof. While repairs happen, you move to a temporary clinic location nearby. Business interruption insurance helps pay for both the lost income and your relocation costs.

How to Add Business Interruption Insurance to Your Dental Practice Coverage

Business interruption is typically added to your property insurance policy or included in a Business Owners Policy (BOP). It’s relatively affordable compared to the protection it provides—especially for practices with consistent monthly revenue.

To get the right protection, make sure:

• Coverage limits reflect your average monthly income.

• The restoration period (how long coverage pays out) is long enough for realistic repair timelines.

• You discuss exclusions and waiting periods with your insurance advisor.

One Missed Week Could Cost You Thousands

Dental offices don’t have inventory sitting on shelves—they have production based on scheduled procedures and patient flow. Every day closed is a day you’re not producing income. One busted pipe, one fire in the suite next door, or one severe thunderstorm can cost more than you think.

Kastner Insurance helps Louisiana dental practices like yours protect what they’ve worked hard to build—not just the space, but the revenue it creates. From Lafayette to Baton Rouge, Alexandria to New Orleans, we specialize in crafting commercial coverage for dental professionals who own their office space.

Let’s talk about how business interruption insurance fits into your coverage plan before the next unexpected closure leaves you offline and out of luck.

About Kastner Insurance Group