Whether you're into support work or support coordinator it's important to figure out what insurance you need to keep things smooth and secure while working with your NDIS customers. Let’s look at the basics and what the most common types of insurance you might need as a sole trader or small business owner.
Professional Indemnity Insurance:
This kind of insurance is designed for business owners who are involved in professional advice or service. It protects and assists in legal fees and compensation against claims of negligence or breach of duty because of your service. For instance, if someone alleges that you made a mistake, misstated or they have misinterpreted you during your work, then they may make a claim. Whether or not the allegations are true, sometimes unhappy customers will seek a legal route to name and shame you and provide them with compensation.
Some of the more common claims against this insurance are:
Failure to provide promised services.
Being negligent in your professional services.
Providing incorrect work or incomplete work.
Making mistakes or oversights.
Accidental omissions (example: re your service agreement).
Public Liability Insurance:
This type of insurance is designed to protect your business against claims resulting from accidents or injuries that occur due to your business activities as well as accidental damage to property of someone else.
As a business owner you are responsible for third parties that meet within the scope of running your business, including customers. If something happens there maybe a claim made against you. Sometimes your work with customers will take you into public places, visit places that are owned by others or have visitors to your office or workplace. Every policy is different but usually they cover things like:
Legal costs.
Cover for others (staff) that may be acting on your behalf.
Loss or damage of goods that are in your care.
Loss or damage of someone else’s property while you are performing your service (Example: damage to a wheelchair)
First aid expenses at the time of the incident.
Injury to others whilst they are visiting your premises.
This insurance does not cover injury to your employees, that is covered by mandatory workers compensation insurance.
Workers Compensation Insurance:
This is a mandatory insurance policy if you have staff, and the cost will be dependent on the number of staff you have working in your business. Workers comp is governed by individual states and territories, so check our your states legislation or head to the Fair Work Ombudsman
Workers comp covers:
Wages while they are not fit for work.
Medical expenses and rehabilitation.
These examples are the three basic insurance that should be considered when starting your own business, but we will delve further into other types of insurance you may need if your business grows or if you feel that you are at risk.
Cyber liability Insurance
Due to the increased of use of technology, this insurance has become mainstream due to the results of data breaches, including stolen or intellectual property. Every business faces the risk as the shape of technology broadens and hackers take it to a new level. As a disability service provider, you are working with sensitive information. It’s important to remember that if your data is stolen, your customers details are at risk.
Read more here: Cyber Security
Income Protection Insurance
In a solo business, it might worth looking into this type of insurance as it provides a portion of your lost income if you are unable to work due to illness or injury. It typically pays up to 70-90% of your pre-tax income for a specified period, helping you cover your expenses while you focus on recovery.
This insurance can be obtained through various channels, such as super funds, insurance brokers, financial advisers, or insurance companies.
For example, most super funds in Australia offer default income protection insurance, which is generally cheaper than buying it directly. So, check your super fund and what they already supply with your superannuation.
Additionally, if you purchase premiums for income protection insurance held outside of super, they are usually tax deductible.
With any insurance product you choose to use, check everything, including the fine print. Diligence in this area will provide you with the security of knowing that your risks are mitigated should something happen.
There are a numerous companies offering insurance, ask around to family, friends and your peers as they may have a preferred provider that they trust. If you google Insurance for the Disability Sector, the main players will come up. Those that are experienced in this space and who have grown since the NDIS inception and are tailored to the disability sector.
NB: Always check the requirements with your state or territory.
We wish you well as always
The Lama Care Team
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