Professional Indemnity (PI) insurance is an important type of cover for allied health professionals due to the potential for losses that may occur out of acts, errors or omissions as a result of the professional services that they deliver.
As an allied health professional, you are typically required to comply with certain professional standards and legislation in your industry which may require you to have a minimum amount of PI cover.
If you are wondering how the cost of PI insurance is calculated for an allied health professional, take a look at some of these impacting factors:
- Occupation – i.e., are you a beautician, massage therapist or psychologist? There are many occupations within this umbrella and all will have different risks associated with the role.
- Business turnover and size.
- The amount of insurance cover required.
- The individuals being covered – Are they qualified for the job they are performing, and do they have a previous history of claims?
Most Professional Indemnity polices for allied health professionals come as package combined with Public Liability (PL) insurance to provide a greater level of protection. So, to give you a clearer indication of how much a combined PI/PL insurance policy can cost for allied health professionals, we have looked at our BizCover data and focused on different popular occupations.
What is the average premium for a combined Professional Indemnity & Public Liability insurance package?
On average cost of an allied health combined Professional Indemnity and Public Liability insurance policy is $55 per month*. The cost of the policy will vary depending on the specific Allied Health occupation and insurance needs.
How does occupation affect the premium?
‘Allied health’ covers a rather broad range of occupations from those in the hair and beauty industry, the fitness industry, and alternative health industry to occupations such as life coaches, nurses and psychologists. All of these occupations face entirely different risks, which is the main reason for premiums varying so greatly under the allied health group. Those with a higher perceived risk will understandably pay higher premiums compared to occupations with a much lower risk of a claim occurring.
Below is the breakdown of our top 5 Allied Health occupations.
Average monthly premium of the top 5 Allied Health occupations in New South Wales
| Occupation | Average Monthly Premium* |
|---|---|
| Nurse or Nursing Services | $79.19 |
| Occupational Therapy Service | $51.90 |
| Psychologist | $41.95 |
| Applied behaviour Therapy | $39.23 |
| Life Coach | $29.81 |
Does the size of my business affect the premium?
Similarly, the more employees you have can also demonstrate a higher volume of work. With more people can come an increased risk of a claim occurring, meaning your premium is most likely to increase as your business grows.
The average cost of Allied Health insurance for businesses operating as sole traders is $39 per month* with BizCover. For Allied Health businesses with 2 employees, the average cost of their combined Professional Indemnity and Public Liability policy increases to $60 per month.
Does the level of cover affect the premium?
Typically, the cost of Professional Indemnity cover for allied health professionals does not increase too greatly as the level of cover increases. Doubling your level of cover does not mean double the premium.
