Insurance for Disability Care Providers

This is information about insurance for companies that offer disability support services, whether they are NDIS registered or not.

Insurance for NDIS Registered Care Companies

NDIS Audit Requirements

According to the NDIS Quality and Safeguards Commission,  all registered NDIS providers that offer disability care service must have:

• Professional Indemnity Insurance
• Public Liability Insurance
• Personal Accident Insurance

As a registered NDIS Service Provider, having appropriate insurance arrangements in place is a requirement that Auditors need to verify as part of your NDIS Certification Audit or Verification Audit and they will ask to see a certificate of currency for these insurances, during your NDIS Audit.

Types of Disability Insurance for Disability Care Companies

There are 3 types of insurance cover for disability care companies:

• For companies who offer in-home supports only
• For companies that offer support and short term accommodation  (e.g STA or respite of periods less than 3 months)
• For companies that offer support and  long term residential care (e.g SIL)

Service providers offering disability support services may be newly formed businesses or have been delivering services for years.

Either way, these disability service providers face business risks:

• arising from delivering disability services within the disability industry,
• arising from signing new NDIS service agreements, 
• handling the personal information of NDIS participants,
• because their experience lies in other industries like age care

To help businesses account for this disability-related business risk, MyCareSpace is partnering with insurance experts that understand the risks that a disability service provider faces and can offer specialised disability insurance cover. 

 

 

What insurance do I need if I am NOT an NDIS Registered provider of support workers?

You still face the same risks, even if you are not a registered NDIS service provider. You still need as a minimum:

• Professional Indemnity Insurance
• Public Liability Insurance
• Workers Compensation (if applicable in your state)

If you don't qualify for Workers' Compensation insurance, you should purchase Personal Accident Insurance cover if you are the primary 'earner' and need to be able to cover your overheads/expenses if something happens to you and you cannot work.

Optional cover for cyber risk, management risk, building and contents.

What does Disability Insurance cover?

There’s no ‘one-size-fits-all’ when it comes to insuring a business, just as there are no two businesses that are exactly the same.

Your insurance needs will vary depending on a variety of factors, such as your size, location, annual turnover etc.

A 'shop front' will face different challenges and risks, to say, a mobile or home-based provider. 

Typical cover you would consider including are as follows:

1. Public Liability Insurance (required by NDIS)

Public Liability insurance protects your business if a customer, supplier or member of the public is injured or sustains property damage as a result of your negligent business activities.  

Small business owners have a legal responsibility to take reasonable steps for the safety of their customers, suppliers and the community and for their property.  

Chances are like many other small businesses, if you were faced with a public liability claim, the financial impact of paying the claim and associated legal fees (including defense costs) could potentially send you out of business. That’s why you should consider Public Liability insurance to provide the financial protection your business deserves.  PL Insurance is an NDIS requirement.

2. Professional Indemnity Insurance (required by NDIS)

This is a must if you are providing a service or advice. It protects professionals against liability for damages and the legal costs associated with defending yourself against claims arising from an act, omission, or breach of duty in the course of your work. PI Insurance is an NDIS requirement.

3. Personal Accident Insurance (required by NDIS)

An accident or serious illness could force you to stop working for an extended period, not only leaving you without an income, but also unable to pay your ongoing expenses and overheads to keep your business running. These might include your rent, telephone, salaries, and electricity.

4. Management Liability Insurance

Management Liability Insurance protects the company and the people who manage the company, such as the Company Director and Senior Managers, against the risks and exposures of running the business – your liability for mismanagement.

It covers allegations and acts of misconduct and legislative breaches, including statutory fines and penalties, defamation, statutory breach of duty, OH&S issues, unfair dismissal, and sexual harassment.  

5. Building and Contents Insurance

Building insurance covers the cost of repairing or rebuilding the business premises (that you own) as a result of fire, storm and other perils specified in the policy.

Contents insurance covers your business contents or stock if they were damaged in a fire, storm or due to malicious damage or some other defined event listed in the policy. This could include things like trading stock, fixtures and fittings, business furniture etc.

6. Cyber Risk

If you have a website for your business or you store sensitive customer information on your computers or laptops, you should think about holding a Cyber Liability policy.

Cyber Liability Insurance protects your business in the event of a cyber attack. The legal costs associated with a data breach can have a significant impact on your business, not to mention the damage it can cause to your reputation.

We have chosen to partner with BizCover, who has tailored and affordable insurance solutions to protect NDIS Service Providers against the risks they face.  

These solutions are accessible instantly online and over the phone. No more lengthy documents and questionnaires, it’s a paperless experience. Apply online and an agent will contact you almost immediately.

Need to speak to an Agent?

Call 02 8287 65 76 to speak to a BizCover agent to find out what cover is right for your business.