Introduction to NDIS Insurance
The National Disability Insurance Scheme (NDIS) has enabled thousands of Australians to access critical support services. But with service delivery comes risk. That’s why NDIS insurance—including public liability, professional indemnity, and sexual abuse (molestation) insurance—is vital for providers. Comprehensive cover builds trust, ensures compliance, and protects your business when things go wrong.
Public Liability Insurance for NDIS Providers
Definition and Scope
Public Liability Insurance covers third-party claims for injury, property damage, or loss due to your business activities. For NDIS providers, this could mean a participant or visitor is injured at a therapy session or while accessing your premises.
What Incidents Are Covered
- A participant slips and falls in an NDIS centre.
- A tenant in a group home damages a visitor’s personal property.
- A support worker accidentally knocks over expensive equipment.
Real‑Life Examples in NDIS Context
At a respite care facility, a participant trips over a loose carpet and breaks their wrist. Public liability insurance handles the medical claims and potential legal costs.
Typical Policy Limits and Claim Handling
NDIS scheme terms often require at least $10 million in liability cover. Claims include legal defence, settlements, and compensation related to bodily injury or property damage.
Professional Indemnity Insurance in NDIS
Understanding Professional Indemnity
This insurance protects you against claims that arise from professional mistakes, negligent advice, or errors. For NDIS providers, it’s essential for those advising or guiding participants.
Common Claims
- Incorrect care plan documentation causing financial loss.
- Miscommunication leading to a missed service or support.
- Allegations of failing to provide competent support coordination.
Policy Structure and Limits
Coverage usually starts at $1 million per claim. It includes legal fees and payouts associated with professional errors or omissions.
Sample Scenarios
- A support coordinator gives outdated advice about funding categories, resulting in financial loss. Professional indemnity covers the claim.
- A therapist incorrectly assesses a participant’s needs, leading to inappropriate services—claim covered under this policy.
Sexual Abuse (Molestation) Insurance Explained
Why This Cover is Essential in Disability Services
Sadly, the risk of allegations of sexual abuse or molestation exists when working with vulnerable clients. Many NDIS participants are in high‑trust, close‑contact environments, making this insurance non‑negotiable.
How the Policy Works
- Coverage: Claims alleging sexual misconduct, abuse, or molestation by employees or volunteers.
- Limits: Usually starts at $1 million, though $5–10 million is common for larger providers.
- Exclusions: Deliberate criminal acts are excluded; professional negligence is not.
Best Practices to Manage and Reduce Risk
- Implement thorough pre‑employment vetting and robust induction.
- Ongoing training in safeguarding and boundary awareness.
- Clear incident reporting and support protocols.
How Delmont Insurance Works with NDIS Operators
At Delmont Insurance, we tailor insurance solutions that reflect the unique risks of various NDIS service types:
Therapy providers (speech therapy, occupational therapy, psychology)
We bundle professional indemnity and public liability to cover clinical errors and accidental bodily injury.
Group homes and accommodation services
Policies combine public liability for premises risks, molestation cover for resident interactions, and optional professional indemnity for care planning.
Plan managers and support coordinators
Emphasis on professional indemnity to protect against errors causing financial loss, plus liability for direct client interactions.
Transport, allied health, and personal care workers
Insurance packages include public liability for vehicle‑related incidents, professional indemnity, and sexual abuse cover where appropriate.
Whatever your specialty—be it behavioural therapy, nursing, respite, or day programs—our team works to ensure your NDIS insurance aligns with your service delivery.
Workers’ Compensation: A Must for Start‑ups
Don’t forget workers’ compensation—a statutory insurance that covers employee injury or illness at work. If you’re starting an NDIS operation and employing staff or casuals, you’re required by law (in Western Australia and other states) to obtain workers’ compensation. While this doesn’t cover client-related claims, it’s essential alongside your public liability, professional indemnity, and sexual abuse insurance.
Choosing the Right NDIS Insurance Package
Assessing Your Risk Profile
Consider your services, the participant cohort, and the environment. The higher the risk, the greater your coverage should be.
Pricing Factors and Limits
- Number of employees and participants
- Revenue and annual turnover
- Service type and premises used
- Claims history
Bundling vs Standalone Policies
Delmont offers comprehensive NDIS insurance bundles, bringing down premiums and simplifying administration. But standalone policies are available for providers only delivering one service type.
Frequently Asked Questions
Q1: What’s the difference between public liability and professional indemnity?
Public liability covers physical injury or property damage; professional indemnity covers mistakes in advice or services.
Q2: Is sexual abuse insurance necessary?
Yes—given the vulnerability of clients and the likelihood of intimate care, this cover is essential.
Q3: Are there minimum cover levels mandated by NDIS?
The NDIS Quality and Safeguards Commission recommends $10 million for public liability and $1–5 million for professional indemnity and molestation cover.
Q4: Can I get coverage if I work from home?
Yes. Delmont can tailor policies to home‑based support workers, covering participant visits and remote service delivery.
Q5: How soon can I get a policy?
Once we understand your service type, staffing and revenue, we can usually issue policies within 1–2 days.
Q6: What about volunteer workers?
Sexual abuse insurance typically extends to volunteers. Workers’ compensation may still apply, depending on your jurisdiction’s rules.
Next Steps
Providing disability services under the NDIS brings immense value—but complex risks too. Securing the right mix of public liability, professional indemnity, and sexual abuse (molestation) insurance ensures your business is equipped for the unexpected.
For expert guidance and tailored insurance solutions, visit Delmont Insurance: https://delmontinsurance.com/community-care-services/ndis-insurance/
Contact Delmont Insurance Group today on (08) 6184 8724 or via email at info@delmontinsurance.com.au.
Article written by James Wilson, Director of Delmont Insurance Group — a trusted adviser and specialist insurance broker