Insurance Requirements for Disability Support Workers

Why Do I Need Insurance? #

As a disability support worker, you’re responsible for the wellbeing of vulnerable individuals in various settings – homes, community venues, and care facilities. Even with the best training and intentions, accidents can happen:

• A client could trip over equipment you’ve placed down
• You might accidentally damage property during service delivery
• A medication administration error could occur
• Incorrect advice or care could lead to client harm
• You could be injured and unable to work

Without proper insurance, you’d be personally liable for compensation claims, legal fees, and medical costs – potentially tens of thousands of dollars that could bankrupt your business or devastate your personal finances.

Who Needs Insurance? #

NDIS Registered Providers: Insurance is mandatory. You must provide proof (Certificate of Currency) during audits and registration.

Unregistered Providers: While not legally required to register with NDIS, most participants (especially those who are self-managed or plan-managed) will require proof of insurance before engaging you.

Agency Workers: Your employer should cover you, but if you’re also doing private work, you need your own policy.

Three Essential Insurance Types #

1. Public Liability Insurance #

Minimum Coverage: $10 million

What it covers:

• Third-party injury claims (client, family member, or public)
• Property damage in client homes or community settings
• Legal defence costs and court attendance
• Medical expenses for injured parties
• Compensation awards

Real-world example: You’re assisting a client with mobility and accidentally leave their wheelchair in a position that causes a family member to trip and break their wrist. Public liability covers their medical costs, lost wages, and your legal defence.

2. Professional Indemnity Insurance #

Minimum Coverage: $5 million

What it covers:

• Claims of professional negligence or errors
• Breach of professional duty allegations
• Failure to provide appropriate care
• Incorrect advice or documentation errors
• Legal costs and investigation expenses

Real-world example: A client alleges your failure to follow their care plan’s transfer techniques resulted in a fall that caused injury. Professional indemnity covers the claim investigation, legal representation, and any settlement.

3. Personal Accident Insurance (Income Protection) #

Required for sole traders/independent contractors

What it covers:

• Weekly income replacement if you can’t work due to injury
• Medical and rehabilitation expenses
• Lump sum payments for permanent disability
• Death benefits for your beneficiaries

Why you need it: Unlike employees who have Workers Compensation, independent contractors have no automatic coverage if injured. This insurance ensures you can still pay bills and business expenses during recovery.

Recommended Coverage Amounts #

Insurance Type	Minimum Required	Why This Amount
Public Liability	$10 million	NDIS standard requirement – serious injury claims can exceed $1M easily
Professional Indemnity	$5 million	NDIS Quality and Safeguards Commission minimum – claims for negligence causing permanent harm are substantial
Personal Accident	Match your income	Should cover your actual earnings plus business expenses during recovery

Important: Do not underinsure to save money. A $1 million professional indemnity policy is NOT sufficient and will not meet NDIS compliance requirements. Claims for serious injuries or ongoing care needs regularly exceed $1 million.

What Does It Cost? #

Indicative cost for proper NDIS-compliant coverage:

Public Liability ($10M) + Professional Indemnity ($5M): $35-45 per month

This core coverage is essential and meets minimum NDIS requirements. The exact price depends on:

• Your annual income/turnover
• Types of services you provide (higher-risk activities cost more)
• Your claims history

Personal Accident Insurance (Income Protection): Additional $15-40 per month

• Varies based on your income level and age
• Should be matched to your actual earnings

Total complete coverage: Approximately $50-85 per month

That’s less than 2% of a typical support worker’s annual income – a small investment for comprehensive protection and peace of mind.

Getting Your Insurance Through BizCover #

We’ve partnered with BizCover to provide streamlined insurance for disability support workers. BizCover specializes in NDIS coverage and offers:

• Instant online quotes in minutes
• Packages specifically designed for sole trader support workers
• All three required coverages bundled together
• Monthly payment options available
• Immediate Certificate of Currency delivery
• Price match guarantee

Get your quote now: Get Insurance for Sole Traders via BizCover

What You’ll Need to Get a Quote #

1. Your ABN (Australian Business Number)
2. An estimate of your yearly income
3. Description of the services you provide
4. Details about any employees (if applicable)

The entire process takes just a few minutes online, and you’ll receive your Certificate of Currency immediately after purchase.

What to Look For in a Policy #

✅ Covers your specific activities – Check that your policy explicitly covers the types of support work you provide (personal care, medication assistance, community access, etc.)

✅ No surprising exclusions – Read the fine print for activities or situations that aren’t covered

✅ Retroactive coverage – Professional indemnity should cover incidents that occurred before the policy started but are claimed during the policy period

✅ Legal support included – Many policies include access to legal advice when you need to notify a potential claim

✅ Easy claims process – BizCover provides dedicated claims support for NDIS workers

Proof of Insurance #

You’ll need a Certificate of Currency showing:

• Policy holder name and ABN
• Insurance type and coverage amount
• Policy start and end dates
• Insurer details

Keep digital and physical copies. You may need to provide this to:

• NDIS auditors during registration or audit processes
• Participants before they engage your services
• Agencies or platforms you work through
• Support coordination teams

Common Questions #

Q: I only do a few hours a week. Do I still need insurance? Yes. Claims aren’t based on hours worked – even one incident could result in a significant claim against you. The cost is the same regardless of whether you work 5 or 40 hours per week.

Q: Can I save money with lower coverage amounts like $1M professional indemnity? No. $1 million professional indemnity does NOT meet NDIS requirements. The minimum is $5 million, and the price difference is only a few dollars per month – nowhere near worth the risk of being uninsured or non-compliant.

Q: Can I share insurance with another support worker? No. Insurance is specific to your ABN and doesn’t cover other people’s business activities.

Q: What happens if I let my insurance lapse? You’ll be uninsured for any incidents that occur during the lapse period, even if you renew later. You could also lose your NDIS registration status.

Q: Does my personal car insurance cover me for client transport? Usually no. You need commercial motor vehicle insurance if you regularly transport clients for payment. BizCover can help you add this coverage.

Q: Can I pay monthly instead of annually? Yes, BizCover offers monthly payment options, making insurance more affordable for independent workers with variable income.

Q: Is insurance tax deductible? Yes. Business insurance is generally tax deductible as a business expense. Check with your accountant for your specific situation.

Final Reminder #

Insurance isn’t just a compliance checkbox – it’s your financial safety net. At just $35-45 per month for the core coverage, there’s no excuse for being uninsured or underinsured.

The cost of NOT having proper insurance:

• Personal liability for claims: $100K – $2M+
• Legal defence costs: $50K – $500K
• Loss of NDIS right to work (Worker Screening Check)
• Inability to work with most participants
• Potential bankruptcy

The cost of HAVING proper insurance: $35-45/month

Before you start taking clients, ensure you have:

• Public Liability Insurance ($10 million minimum)
• Professional Indemnity Insurance ($5 million minimum)
• Personal Accident Insurance (if you’re an independent contractor)
• Certificate of Currency for each policy
• Calendar reminder set for renewal dates
• Ready to get protected? Get your instant from BizCover now