Dr. David Geck
By Dr. David Geck
Colorado’s New Damage Caps: Why a $1M Professional Liability Policy May No Longer Be “Enough
You have built a thriving practice. Your patients trust you, your team respects you, and your reputation is “solid”. Then the unthinkable happens. A surgical complication, an adverse outcome. You’ve always believed your $1 million professional liability policy would protect you. But under Colorado’s new legislation increasing tort damage caps, that assumption may leave you at personal financial risk.
As of January 1, 2025, Colorado enacted sweeping changes to its damage cap laws through House Bill 24-1472, dramatically increasing the maximum recoverable damages in civil and dental/medical malpractice lawsuits. For dental professionals, this isn’t just a subtle “tweak” to the law, it is a significant shift that could leave dentists underinsured with inadequate professional liability insurance coverage.
Many dentists in Colorado carry a $1 million per occurrence liability policy, long considered sufficient. However, under the new law, that coverage may no longer protect you against the full financial risk of a claim, whether it be a nuisance or a serious claim. It is time to address the key changes, their implications for dental practices, and the steps dentists should take to safeguard their professional and personal assets.
Colorado’s updated damage caps significantly increase the financial exposure for healthcare providers, including dentists. The most relevant changes include:
Noneconomic Damages in Civil Actions (General negligence)
- Old Cap: $250,000 – Adjusted to $729,790 as of 2024
- New Cap: $1,500,000
- Adjustment: Indexed for inflation every two years starting in 2028
Wrongful Death (General negligence)
- Old Cap: $250,00 — Adjusted to $729,790 as of 2024
- New Cap: $2,125,000
- Adjustment: Indexed for inflation every two years starting in 2028
Medical Malpractice – Wrongful Death
- Old Cap: $300,000
- New Cap: $810,000 (cases filed in 2026)
- New Cap: Phased increase to $1,575,000 over three years
- Adjusted for inflation effective 2030
Medical Malpractice – Noneconomic Damages
- Old Cap: $300,000
- New Cap: $530,000 (cases filed in 2026)
- New Cap: Phased increase to $875,000 over three years
- Adjusted for inflation effective 2030
Medical Malpractice Overall Damages Cap – Economic and Noneconomic Damages
- New Cap: $1,012,500: The greater of $1,000,000 or 125% of the Medical malpractice and Wrongful Death noneconomic damages cap in effect at the time the acts or omissions occurred.
- Increases to $1,968,750 over next three years
- Adjusted for inflation effective 2030
These increases reflect a broader national trend toward expanding patient rights and compensation. Colorado’s biennial inflation adjustments mean these caps will continue to rise, further increasing liability exposure over time.
For example, consider the following hypothetical claims:
A patient suffers severe infection and permanent facial nerve damage from a dental procedure, resulting in extensive follow-up care, chronic pain and loss of function. Economic damages alone, such as medical or surgical expenses, lost wages and future care, could quickly eclipse $1 million. This is especially true if the patient has a difficult medical course, is a substantial wage earner, or the future treatment is likely to be extensive. Then, the noneconomic damages for pain and lost enjoyment of life could easily add up from there, leaving a six- or even seven-figure gap in coverage.
A patient experiences post-treatment complications alleged to have been caused by dental/medical care, and sadly the patient dies. Numerous factors can drive exposure in wrongful death claims filed under a dental/medical malpractice theory. Before the recent changes to the damage caps, most such claims were subject to a $300,000 exposure. The new wrongful death caps, especially as they grow in the future, can make settlement or verdict amounts exceed the historically common $1 million policy limit.
If your coverage stops at $1 million, you’re personally responsible for the rest.
In each case, if a judgment exceeds your insurance coverage, plaintiffs may pursue your personal assets, including savings, property, and future earnings. This could bring considerations about additional legal challenges, liquidating assets, facing wage garnishment, or enduring long-term financial hardship. As damage caps rise, insurers may adjust premiums, policy structures, and underwriting criteria. Dentists should expect potentially higher costs for enhanced coverage.
So, what’s your plan moving forward?
Start with a review of your current coverage. Contact your professionally liability provider and confirm your per-occurrence and aggregate limits. Understand the scope of your coverage and any exclusions.
If you are a member of the Dentists Professional Liability Trust, you are already have a $2M/$6M policy. If you have a $1M/$3M policy, you should consider raising your limits. The cost difference is minimal compared to the risk of underinsurance. And as always, do your due diligence and consider which policy is the best fit for you.
Be proactive to reduce your risk. Invest in continuing education, review and update patient hand-off and inter-office protocols. And remember that detailed, accurate documentation and thorough informed consents (not just a signed form, but a true communication about risks, benefits, and alternatives) are pivotal in defending a claim against you.
Prioritize communication and trust. Establish rapport and trust with each patient and with your team. Most lawsuits start with a breakdown in communication or a loss of trust. When complications arise, speak directly with your patient. They feel more reassured and valued when the dentist personally reaches out, offering clarity and a compassionate touch. Often, a kind and empathetic face-to-face conversation (not just a text message) can go a long way toward de-escalating a matter.
Colorado’s new damage caps mark a turning point in malpractice liability. For dentists, the message is clear; the old standard of a $1 million policy is no longer enough. By taking proactive steps, reviewing coverage, increasing limits, and enhancing risk management, you can protect yourself, your practice and your future.
Don’t wait for a claim to test your limits. Prepare today for tomorrow’s risks.
Contact the Dentists Professional Liability Trust of Colorado Today at ask about our 2million/6 million claims made policy to make sure you are protected. It’s Personal to us and your protection matters.
“I’ve been with Dental Trust since completing my residency, and I can wholeheartedly attest to their exceptional professionalism and commitment. Their open communication always makes me feel valued and understood, with my best interests consistently prioritized. Dental Trust has stood by me, providing unparalleled support, and ensuring I’m well taken care of. I’m grateful to be part of the Dental Trust family and highly recommend them to any dental professional seeking trustworthy coverage.”
“I had insurance coverage with the AAO for over 20 years and switched to the Trust seven years ago. The AAO was fine, but I never had anyone to reach out to, when I had questions or concerns about patients. Having a personal connection with my local peers, like Dr. Delapp and Dr Geck at the Trust, has made it easy to discuss those difficult circumstances which we all have. Honestly, I would rather have my insurance contact being in Denver, vs calling a 1-800 number, probably one of the best moves I’ve made to protect my practice.”
“I have been practicing dentistry in the state of Colorado since 2007. It is an absolute privilege to work with The Trust. I am proud to be part of a member owned, non-profit organization where I am represented and supported by my peers. The Trust has given me advice in many aspects of private practice. This organization uses dentists to examine claims, and the best legal teams to guide you. They are professional and understand what the stresses and challenges are of being a dental professional. There are times in our careers where we are working long days or late night and we need advice. The Trust will be there for you 100%. I support The Trust as much as they support me. I would not want to practice without them.”
“It’s so nice to have a support system such as the Trust to help navigate through a situation. I greatly appreciate what you do to support dentists like myself throughout the entire state. Thank you, Thank you!"
"I have been working with the Trust for a total of 5 years. They have made it very easy to reach out for advice and are always protecting the dentist. They are a valuable resource and are consistently professional. The rates are very reasonable but more importantly, the resources and support you are getting by becoming a Member of the Trust is invaluable."
"Here’s my experience with The Dentists Professional Liability Trust as one of its defense attorneys: it exclusively uses seasoned dentists as claim professionals, so they know the dentistry, provide excellent assistance to legal counsel, and understand the emotional toll of having a patient sue, even though you’ve done your best. The Trust provides sound, honest advice to avoid or resolve conflicts; it arranges immediate legal help for insureds if complaints are made to the Colorado Dental Board; and if litigation is unavoidable, it lends thoughtful, steady support. It is a superior insurer."
"I brag to my friends in other states about the tremendous advantage Colorado dentists have with the Trust. I have more confidence knowing that a group of dentists are supporting me and looking out for my best interests and my practice. I'm assured knowing that I can call them anytime, with any question, and I'm able to talk to an actual practicing dentist. I feel like the Trust cares for me and my practice."
“The Trust is one of our state's most unique and beneficial resources for Colorado dentists and dental specialists. It offers exceptional value and excellent representation coupled with a very professional and knowledgeable staff who are always willing to offer advice and resources to ensure optimal risk management for our practices.”
“I have participated in The Trust since their establishment in 1987, and value their competent, professional staff, their reasonable rates, and their sound business practices. They have built a wonderful reputation for serving and protecting Colorado dentists! Their coverage cannot be beat!”
“I would be happy to share with my colleagues that my participation in the Trust over the past 25 years has been a consistent source of security, comfort, predictability and stability for my dental practice. I rest a little easier knowing that the folks at the Trust have engineered a liability safety net that provides excellent protection for my practice and family assets. I cannot imagine practicing without this critical coverage.”