This article was provided by Lockton Affinity, the administrator for the AAO-Endorsed Insurance Program. Available insurance products include group term and level term life insurance, group disability insurance, critical illness insurance, cyber liability insurance, business overhead expense and more. Lockton Affinity is focused on enhancing the insurance program to help ensure it continues to meet the changing needs of orthodontists. To learn more, contact Lockton Affinity at (844)-893-9888 or visit AAO-Insurance.com.

Protecting Your Practice

Building, growing and operating a successful orthodontic practice is no easy feat. Not only did you commit to your education to become an orthodontist, you made a commitment to opening your own practice and all that it entails.

Now that your practice is running successfully, you have a lot of responsibility for the business that you’ve grown—for your patients, your staff, your property and your finances.

After all that work and commitment, your future deserves protection. One way you can help protect your future as a practice owner is business overhead expense insurance.

Overhead Expenses for Orthodontic Practices

Overhead expenses, or operating expenses, are the costs it takes to run your practice. These expenditures can include rent, electricity, internet, office materials, insurance, employee salaries and more.

Overhead expenses for orthodontic practices typically range from 49% to 60% of a practice’s total revenue1. Consider these expenses:

  • On average, rent is $25 per square foot2. With a 1,600 square-foot space, you could expect to pay $3,333 per month.
  • Utilities expenses cost around $2 per square feet3, or around $267 per month for a 1,600 square-foot space.

If an injury or illness were to keep you from working, could you afford your practice’s overhead expenses for months and months? Without your income from practicing, these costs can make a big impact on your practice’s financials. Would you have to cut costs, use personal funds or take out a loan to keep your business afloat?

Resorting to your personal assets or taking out a loan to pay for your practice’s expenses may be undesirable. That’s why practice owners should consider business overhead expense insurance.

Why Business Overhead Expense Insurance may be Critical for Orthodontists

Business overhead expense insurance works for your practice the way disability insurance works to protect your individual income. Should you become disabled and unable to work as an orthodontist, business overhead expense insurance helps protect your personal assets by paying your business expenses.

The American Association of Orthodontists knows the importance of business overhead expense insurance for orthodontic practices. See how Lockton Affinity, AAO’s insurance partner, can help protect your career and future at AAO-Insurance.com or call (844) 983-9888.

1 Wilson, Susan. “The Universal Language of Business.” The Orthodontic Practice US, Gaidge, 31 July 2020.

2 Sorensen, Larry. “How Much Do Dentists Pay to Rent Their Office?” Global Cool, Health Pro Realty Group, 2 Jan. 2021.

3 Kriss, Randa. “14 Business Startup Costs Business Owners Need to Know.” JustBusiness, 16 Dec. 2020.

The AAO-Endorsed Insurance Program is administered by Lockton Affinity, LLC d/b/a Lockton Affinity Insurance Brokers LLC, Affinity Administrator Services, LLC in California #0795478, and in Arkansas #100108685. Coverage may not be available in all states and is subject to actual policy terms and conditions. Policy benefits are the sole obligation of the issuing insurance company. American Association of Orthodontists (AAO) will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.

Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 under Group Policy No. G-14242-4 on Policy Form G-14242 /GMR-FACE.

New York Life Insurance Company is licensed/authorized to transact business in all of the 50 United States, the District of Columbia, Puerto Rico and Canada. However, not all group policies it underwrites are available in all jurisdictions. Please check the eligibility sections for current availability. New York Life Insurance Company’s state of domicile is New York, and NAIC ID is #66915. AAO incurs certain administrative expenses in connection with this sponsored program. To provide and maintain this valuable membership benefit, it is reimbursed for such expenses.