Dear AAO Members,

I am writing to you to let you know about some significant changes coming to AAO’s endorsed professional liability insurance product, which has been provided by the AAO Insurance Company (AAOIC) since approximately 1995. As of December 1, 2025, AAO and AAOIC will be parting ways, and AAOIC’s professional liability insurance will no longer be endorsed by AAO.

This news likely comes as a surprise to you. For starters, many are not even aware that AAO and AAOIC are separate organizations. They are, in part because of the legal requirements that pertain to insurance carriers. In 1995, AAO created AAOIC, contributing $1.1 million to fund its creation. Many of the positions on AAOIC’s board of directors were held by AAO trustees, either former or current. And, since AAOIC’s creation, AAO and AAOIC have shared an endorsed partner relationship—AAOIC has paid AAO a royalty for use of AAO’s name and logo, and in return, AAO gave an exclusive endorsement to AAOIC’s insurance as its professional liability insurance product.

Over the years since then, and especially recently, AAOIC has drifted away from this initial relationship. Around 6 years ago, AAOIC changed its bylaws to no longer have AAO current trustees, who represented the interests of AAO members, be part of its Board. More recently, AAOIC significantly increased premiums for areas where litigation claims can be more expensive, such as the New York City, Detroit and Miami metropolitan areas—areas where many AAO members practice—such that AAOIC’s insurance coverage was no longer an economically viable option for many. (At the time, many of these members believed AAO made this change, not understanding that the two organizations have separate operations.)

In other instances, AAOIC has declined to cover some AAO members, believing they create too high of an underwriting risk. As a result, only around 52% of AAO members are currently insured by AAOIC—and because of AAO’s exclusive endorsement of AAOIC, AAO has been unable to offer an alternative professional liability option to these members.

The final issue occurred in 2025, when AAOIC indicated to AAO that it was changing its business to insure orthodontists who are not AAO members. AAO for many months tried to negotiate with AAOIC, since AAOIC was created in order to be a benefit of AAO membership. AAOIC indicated it was unwilling to change its intentions, and eventually, notified AAO that it was terminating the endorsed partnership agreement between the two organizations as of December 1, 2025.

Even then, AAO attempted to salvage the relationship. But AAOIC’s actions placed AAO in an untenable position: AAOIC, which was created by AAO to be a benefit of AAO membership, will be selling insurance to non-AAO members; at the same time, AAOIC will not cover a significant portion of AAO members (either those perceived to be too significant of a risk, or pricing coverage so high that members must obtain coverage elsewhere) and AAO was not allowed to provide those members another professional liability insurance option.

These are issues of the utmost importance to AAO membership; while the AAO Board of Trustees did not want to see the relationship between AAO and AAOIC end, we could not undermine AAO membership by giving in on these fundamental issues. Therefore, rather than give in to AAOIC’s demands, the agreement between the two organizations will end on December 1.

I am certain this raises a number of questions for you as a member. One may be, will AAO now have an endorsed professional liability insurance product to offer to members? I can answer emphatically that, within a short time, we will. AAO recognizes the value of a professional liability insurance product for its members. In particular, AAO members need insurance that is competitively priced (among the most affordable in the industry) and offers exceptional protection to your practice, while having claims handled by a team that understands orthodontists and their needs. We are working at top speed to develop a new professional liability insurance product for members, and hope to have something available soon. 

As AAOIC has long been affiliated with the AAO, there will likely be some confusion moving forward about the “AAOIC” name. Please be aware that as of December 1, the company is no longer affiliated with the AAO in any capacity and will be prohibited from using the AAO’s name and logo. Moreover, AAOIC’s insurance product will no longer be endorsed by AAO. AAO will move quickly to provide a replacement product that meets the needs of AAO members. Our baseline expectation is simple: AAO‑endorsed products must deliver measurable value to AAO members.

As you might imagine, this is not news that I had hoped to share with you during my year as AAO President. However, with every challenge comes opportunities. While unfortunate, the developments between AAO and AAOIC will provide AAO an opportunity to create a new professional liability endorsed insurance product, one that meets the needs of all AAO members. This coverage will also be solely a benefit of AAO membership, as was intended when AAO’s endorsed insurance program was first developed, and will be integrated into a full suite of other insurance coverages you need in practice (life, disability, cyber security, and others).

At AAO, our Strategic Plan sets out five core values, and the first one is simple: “Our members come first.” The AAO Board of Trustees, representing you as a member, was unwilling to cave when AAOIC’s actions were simply not in alignment with that core value. AAO’s endorsed professional liability insurance program should be solely a benefit of AAO membership and available to any AAO member who desires to utilize it. AAOIC’s decision to terminate the relationship with AAO on December 1 gives AAO the chance to quickly pivot to a top-quality insurance program that is in alignment with these core values.

Thank you for your time to read these important updates, and please be on the lookout for news  to come about AAO’s new endorsed professional liability insurance.

Sincerely,
Steven Siegel, DMD
President, American Association of Orthodontists