Got clients in disability support? Here’s what you may need to know
The NDIS workforce is one of Australia’s fastest growing industries.
In June 2021, Australia had over 11,600 NDIS providers, employing more than 270,000 workers across 20 occupations. That number is set to explode to over 350,000 workers servicing around half a million participants by 2024.
With this rapid growth, many new NDIS providers are expected to enter the industry – each requiring their own set of mandatory business insurance.
This article is designed for our partners to help you approach the conversation of business insurance with your SME clients in the disability sector.
It will explain some of the key insurance products required for support workers so you can equip yourself with the knowledge you may need to advocate in the disability sector.
What insurance do disability workers need?
Disability businesses in Australia need three types of insurance: Workers Compensation, Professional Indemnity, and Public Liability.
Workers Compensation insurance
Workers Compensation insurance is a compulsory form of insurance that employers are required to take out to protect their employees.
Workers Compensation insurance is designed to cover an employee’s loss of wages, medical and rehabilitation expenses for work-related injuries or illnesses. Lump sum benefits may also be available if an employee dies or is permanently impaired as a result of their work.
To find out how to get Workers Compensation insurance in each Australian jurisdiction, click here.
Professional Indemnity (PI) insurance
Professional Indemnity cover is an essential policy for disability workers. It’s designed to protect against the financial loss for claims arising from acts of negligence, errors or omissions which involve a breach of your professional duty if your clients provide a specialist service or advice.
Examples of claims for negligence could include failing to assess a risk accurately, incorrectly administrating prescribed medications and emergency procedures, or failing to provide agreed supervision of your client in public spaces. It is also designed to cover legal and defence costs.
An important consideration for clients in the disability sector is to check their PI policy’s run-off cover, which is designed to provide protection against claims made against them after they cease working.
Public Liability (PL)insurance
Every day your clients work closely with members of the public. A claim could arise from forgetting to clean a spill on the floor, causing someone to slip over and injure themselves or accidentally breaking their customer’s property.
This makes Public Liability insurance a vital type of cover for disability support workers. It provides cover against legal costs and compensation for claims made against your clients by third parties for injury and property damage.
Top tip
It is also a good idea to combine the Public Liability and Professional Indemnity policies to avoid any shared risks between the two exposures. Combining the policy often also has cost benefits that can be an attractive incentive for your SME clients.
The Allied Health Combined Liability insurance product found on BizCover includes protection for Professional Indemnity and Public Liability insurance* and is available for workers in the NDIS sector.
Where is it mandatory?
At the very minimum, a disability support worker should have Public Liability and Professional Indemnity insurance across all jurisdiction in Australia, according to industry body My Care Space. If the business has employees, they will also need Workers Compensation.
Disability providers governed by the NDIS, the national scheme that oversees disability care in Australia, will need three forms of insurance.
The NDIS Terms of Business for Registered Providers states that NDIS providers must maintain an adequate level of PL insurance, PI insurance, and Workers' Compensation insurance when employing workers.
All insurance must be taken out with an insurer recognised by APRA or regulated by a State/Territory Auditor-General.
For more information, click here.
Refer your SME clients
Many clients need mandatory insurance and some other insurance cover options to minimise their risk.
These requirements make it easy to refer your clients through the BizCover Referral Portal and create an additional revenue stream for your business and add additional value to your clients.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769