Insurance for Disability Support Workers

Insurance for Disability Support Workers

Insurance for Disability Support Workers

Insurance for Disability Support Workers is becoming extremely important as more an more individuals look to Support worker as their chosen career – or establishing a disability support related businesses. The NDIS workforce is one of Australia’s fastest growing sectors in Australia. Coupled with the ageing population and the growing need for support in the aged care sector, resources to assist support workers have never been in higher demand.

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.

Insurance for Disability Support Workers – What insurance do disability workers need?

Disability businesses in Australia need three types of insurance: Workers Compensation, Professional Indemnity, and Public Liability.

Insurance for Disability Support Employers – Workers Compensation insurance (for employers of Disability Support workers)

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 please our article on Workers Compensation

Insurance for Disability Support Workers – 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.

Insurance for Disability Support Workers – 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 for Disability Support Worker Insurance

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. Just select your occupation (start typing “Disability” and options will appear.

The most common role will be “Aged and/or Disability Care Worker”

Where is Disability Support Worker Insurance mandatory?

At the very minimum, a disability support worker should have Public Liability and Professional Indemnity insurance across all jurisdiction in Australia.

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.

Get Disability Support Worker Insurance

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