Top 5 Reasons for Having Professional Indemnity and Public Liability Insurance
You’ve worked hard to build your business, so it makes sense to protect it. Below are the top 5 reasons NHAA members should hold and maintain Professional Indemnity and Public Liability insurance.
#1 Protection against claims of negligence, malpractice and professional misconduct
Your service comes with an expectation of a high level of professionalism and specialist knowledge. If something goes wrong you may be held liable. Someone could make a claim against you for providing incorrect or ineffective treatments, negligent advice to clients in relation to their wellbeing or even for an allegation of professional misconduct.
Professional Indemnity insurance provides protection for financial losses for any legal action against you. It covers legal and defence costs, as well as damages awarded against you.
#2 Protection against 3rd party injury and property damage
If you have people coming into your practice or you perform your work at a clients place or another venue and you accidentally injure someone or cause property damage, you face the risk of legal action. Public Liability insurance protects you against claims from customers or other third parties by covering any compensation awarded against you as well as legal defence costs whether you are found responsible or not.
#3 NHAA membership requirement
As a practicing full member of the NHAA you must hold a current Professional Indemnity insurance policy in the appropriate modality/modalities, with a minimum of $2 million coverage (each claim). You must show proof of your insurance by providing a copy of your policy or certificate of currency, including the modalities covered and insured amount.
#4 Recognised Health Insurance provider
To enable your patients to be able to claim a rebate on their health fund you must be a recognised provider with their fund. Registered health funds must ensure that recognised providers comply with Rule 10 of the Private Health Insurance Rules 2011, which requires providers to be a member of a national professional association such as the NHAA. Health funds also require providers to hold a current Professional Indemnity insurance policy.
So, in a nutshell, to become a practicing full member of the NHAA, which allows you to become a recognised Health insurance provider you must have Professional Indemnity insurance.
#5 Maintain a professional standard and protect your reputation
The image we portray sends an important message to our clients, and as a herbalist or naturopath your reputation means everything. Holding the relevant insurance will not only assist in upholding a professional standard, it will enable you to pursue legal avenues to clear your name and defend your reputation in the case of an alleged breach of professional misconduct.
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