Colorado’s New Damage Caps: Why a $1M Professional Liability Policy May No Longer Be “Enough”
By David Geck, D.D.S., M.S., From the Winter 2026 Journal of the Colorado Dental Association
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 that increases tort damage caps, that assumption may leave you at personal financial risk.
As of Jan. 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 health care 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: $250,000 – 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:
Case 1:
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.
Case 2:
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 professional 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 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. 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.
Dr. David Geck is the associate executive director of the Dentists Professional Liability Trust of Colorado. Contact him at dgeck@berkleyrisk.com.
