How much does Combined Liability Insurance cost for Allied Health Professionals?

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:

  • Occupation, i.e., are you a beautician, massage therapist or psychologist etc.?
  • 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 created a snapshot using the data of BizCover policies sold during the 2017/18 financial year. The figures analysed comprise 3,049 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 2017/2018 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.

What is the average premium for combined Professional Indemnity & Public Liability insurance package?

On average cost of an allied health combined Professional Liability policy is $45.68 per month.. However, a large proportion (46%) of allied health professionals pay only $26-$35 per month.

Here’s a full breakdown:


*Data based on NSW BizCover customers

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 10 allied health occupations.


*Data based on NSW BizCover customers

How does revenue affect the premium?

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 $52 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 to $154 or more.

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.


*Data based on NSW BizCover customers

Does the size of my business affect the premium?

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 $41 per month for their combined liability cover. However, those with one to six employees can pay anywhere between $57 to $100 per month.

Below is the full breakdown:

Below is the full breakdown:


*Data based on NSW BizCover customers

Does the level of cover affect the premium?

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 $44.16. While those holding $5 million of cover are only paying around $55 per month.

Average monthly cost of Allied Health combined liability insurance by level of cover

Coverage level Average monthly premium
$1 million $44.16
$1.5 million $42.73
$2 million $44.00
$2.5 million $50.37
$3 million $41.15
$5 million $55.55
$10 million $58.06

*Data based on NSW BizCover customers