Years of studying, training and experience sits behind your service as a Health Professional. But no matter what line of work you’re in, in the course of your business activities, many potential mishaps may bring about some serious financial hardships for your business. Insurance for health professionals may help alleviate the financial impact of these incidents, but adequately protecting your business starts with understanding the different policies, and what they intend to cover and don’t cover.

Below we’ll go through the various insurance policies available for health & advice based professionals, and what to consider when taking out a policy.

Depending on your specific profession, there may be some forms of insurance that are mandatory for you to hold. These covers are usually mandated by regulatory authorities/boards and/or associations you’re required to be registered with to practice. For example, if you’re a psychologist or occupational therapist, you are required to be registered with the Australian Health Practitioners Regulation Agency (AHPRA), and this body sets the insurance requirements.

In general, regulatory authorities like these require that all practitioners take out Professional Indemnity Insurance at a minimum. However, regardless of the minimum mandated cover, there are other forms of insurance which are worth considering to help protect your business and livelihood .

Professional Indemnity

Professional Indemnity (PI) Insurance is a mandatory insurance for health professionals such as psychologists, physiotherapists and chiropractors. It is designed to cover you if a client alleges your service or advice caused them financial loss and take legal action against you. PI is intended to cover the legal fees you incur in defending yourself, as well as compensation you might be required to pay.

While the coverage under Professional Indemnity Insurance is fairly simple, there are some unique features under the cover which should be understood before taking out this cover. For example, run-off cover is an important feature to keep in mind when taking out PI – you can learn about run-off cover in our article. PI is also written on a claims-made basis, and the claims process for PI also varies from other types of insurance.

Public & Products Liability

Public Liability (PL) is another important cover for any practitioner, particularly if you provide your service in person, or have any interactions with members of the public. It is designed to provide insurance for health professionals, if their business is held liable for personal injury to a third party, or damage to their property. For example, if a client visited your premises, tripped over, injured themselves, and sued your business, PL may help cover the legal fees to defend you, as well as compensation your business is required to pay.

When choosing a Public Liability policy, it’s worth checking whether the policy includes Product Liability cover. Product Liability is another type of insurance which is generally offered as part of Public Liability. It is designed to provide cover if your business is held liable for personal injury or property damage to a third party as a result of products your business manufactures, supplies or sells. While it may seem like a risk that is not applicable to health professionals, it is an important one to consider as your business still may be held liable for injury or property damage as a result of incidental products or products associated with the delivery of your professional service.

Business Insurance Pack

In operating your practice, you probably own some equipment essential to carrying out your service. A Business Insurance pack is designed to help repair or replace your business’s equipment if they were damaged due to an insured event. It is a packaged policy where you can choose sections of cover as per your business’s needs. Public & Products Liability Insurance can also be taken out as part of a Business Insurance pack. You can learn more about Business Insurance packs here.

Whether you own equipment specific to your line of practice or rely on your electronic devices such as your laptop and/or mobile phone to provide your service, taking out cover to protect these items is essential to assist the running your business if something were to happen to them.

Cyber Insurance

There may have been a time where it seemed unlikely that health practitioners would be considered targets of cyber crime, but as you incorporate more of a digital presence into your practice, falling victim to a cyber attack is certainly no impossibility. Cyber Insurance is designed to cover financial losses your business incurs resulting from a cyber attack. It could cover both financial losses your business suffers (first party losses), as well as legal costs and settlements for those suffered by third parties associated with your business, such as suppliers and/or clients (third party losses).

Holding appropriate insurance for health professionals practice is an important part of safeguarding your financial livelihood. While many events may seem unlikely, incidents can occur without warning, and without insurance in place, your business might find it hard to survive the financial consequences. When choosing insurance for your health practice, also be sure to consider the broker you insure through. Choosing a broker who has expertise in your industry and can arrange cover that has been designed specifically to suit the risks of your industry can play a role in the cover you end up with.