The National Disability Insurance Scheme (NDIS) has revolutionised disability care in Australia, offering individuals greater control over their support and services. However, for businesses involved in providing NDIS services, the cost of insurance can be a significant financial burden. Many NDIS providers find themselves questioning why premiums are so high and what can be done to manage these costs effectively. The biggest surprise generally arises from the workers’ compensation insurance policy, especially following a large claim.
At Delmont Insurance Group, we understand the complexities of NDIS business insurance and work with providers to reduce premiums in the long term while maintaining comprehensive coverage. As a trusted Perth insurance broker, we specialise in helping NDIS businesses manage their insurance needs efficiently. In this blog post, we’ll explore the key factors contributing to the high cost of NDIS insurance, typical claims that impact premiums, and how partnering with the right broker can make a difference.
Factors Driving High NDIS Insurance Costs
High-Risk Nature of NDIS Services
NDIS providers deliver care and support to individuals with varying levels of disability, which inherently carries a high level of risk. From physical injuries to mental health challenges, the diverse needs of participants increase the likelihood of insurance claims. Furthermore, the personal nature of the support provided means that providers are constantly exposed to risks related to personal injury, abuse allegations, and professional misconduct.
Workers’ Compensation Challenges in WA
In Western Australia, the workers’ compensation insurance scheme presents specific challenges for NDIS providers. A significant portion of claims stem from overstrain or overuse injuries, particularly related to lifting and handling participants. These types of injuries are common among support workers who regularly assist clients with mobility and daily care tasks. The long-tail nature of claims related to mental health, often stemming from workplace stress or traumatic incidents, also contributes to higher premiums. Early intervention and third-party claim managers can be integral to helping reduce claim times and costs.
Specialised Insurance Requirements
One of the most complex aspects of NDIS insurance is the need for specialised coverage. General liability policies typically do not cover certain high-risk areas, such as molestation or abuse claims. Molestation insurance, specifically designed to protect organisations from allegations of abuse or misconduct, is essential for any business providing personal care services. Due to the sensitive and serious nature of these risks, insurers often charge significantly higher premiums for this coverage.
Claims Issues That Increase Premiums
Overstrain and Overuse Injuries
In WA, lifting and manual handling injuries are common, especially in environments where support workers assist with transfers and mobility. These claims not only affect individual businesses but can also impact industry-wide premiums due to their frequency and severity.
Mental Health and Long-Tail Claims
Mental health-related claims, such as stress and trauma resulting from incidents at work, are particularly problematic. These claims can take years to resolve, with ongoing costs for treatment and rehabilitation. The unpredictability and long duration of these claims make them a major contributor to rising insurance costs.
Abuse and Molestation Claims
Any organisation providing personal care faces the risk of allegations related to abuse or misconduct. Even when unfounded, such claims can result in legal fees, investigation costs, and reputational damage. Because molestation insurance is highly specialised and often not included in standard liability policies, the additional coverage increases premiums.
The Delmont Insurance Process: Tailored Risk Management
At Delmont Insurance Group, we take a proactive and personal approach to managing NDIS business insurance costs. As an experienced Perth insurance broker, our process begins with meeting clients face-to-face to understand their specific operations and risk exposures. We believe that effective insurance coverage starts with a clear understanding of the business environment, including the unique challenges faced by NDIS providers.
We work collaboratively with our clients to identify potential risks and discuss strategies to mitigate these risks before considering insurance options. By addressing areas such as manual handling procedures, mental health support for staff, and safeguarding practices, we help clients reduce their overall risk profile. This proactive approach not only improves safety and compliance but can also lead to lower insurance premiums over time.
Following our risk assessment, we present tailored insurance options from specialist providers like Ansvar Insurance, Pen Underwriting, and ProRisk Insurance. Our goal is to ensure comprehensive coverage while actively seeking opportunities to reduce costs through strategic risk management.
Navigating NDIS business insurance can be daunting, especially when premiums seem disproportionately high. By understanding the unique risks associated with NDIS services and working with an experienced Perth insurance broker who specialises in this area, you can take steps to reduce costs while maintaining comprehensive coverage. Delmont Insurance Group is committed to helping NDIS providers manage risk and lower premiums through tailored solutions and expert advice. Contact us today to learn more.
Delmont Insurance Group is ready to assist. We’ll visit your business, review your current arrangements, and present clear, tailored advice on how to improve your risk profile and market position.
Contact Delmont Insurance Group today on (08) 6184 8724.
Article written by James Wilson, Director of Delmont Insurance Group — a trusted adviser and specialist insurance broker