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Professional Indemnity (PI) insurance is one of the most important types of cover for all 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 you 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 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:
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 created a snapshot using the data of BizCover policies sold during the 2018/19 financial year. The figures analysed comprise 8792 allied health professionals in NSW, with 10 or fewer employees.
|We know, sometimes you just want a quick idea of how much your insurance is actually going to cost. However, it’s important to note that the data included within this article was sourced from BizCover customer data during 2018/2019 and is intended as a guide only. It may not reflect pricing for your particular business as individual underwriting criteria will apply. Get a hassle-free quote for your business here.|
On average cost of an allied health combined Professional Liability policy is $31.05 per month.. However, a large proportion (59%) of allied health professionals pay only $16-$25 per month.
Here’s a full breakdown:
‘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 10 allied health occupations.
Commonly, the more revenue your business generates, the higher your combined liability insurance premium will most likely be. For example, an allied health professional generating between $50,001 to $100,000 typically pay around $34 per month. The cost of the premium, fortunately, doesn’t increase significantly until an allied health professional starts earning above $100,001 which increases the monthly premium of around $65.
This is mainly because a high turnover indicates that your business is undertaking a greater amount of work, creating a higher exposure to more risks, thus a greater chance that something could go wrong.
Below is the full breakdown:
Similarly, the more employees you have can also demonstrate a higher volume of work, and with more people comes an increased risk of a claim occurring, meaning your premium is most likely to increase as your business grows in size.
Nearly 74% of allied health professionals insured through BizCover are sole traders. They pay approximately $26 per month for their combined liability cover. However, those with one to six employees can pay on average $69 per month, more than 50% increase in price.
Below is the full breakdown:
Fortunately, 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.
Results from BizCover data shows that $1 million is the most popular level of Professional Indemnity cover taken out within a combined liability policy, with an average monthly premium of $28.05. While those holding $5 million of cover are only paying around $36.13 per month.
|Coverage level||Average monthly premium|
*Data based on NSW BizCover customers