Insurance for Support Workers
What kinds of business insurance do support workers need?
What is ‘support workers’ insurance’?
‘Support workers’ insurance’ is not a specific type of insurance product, but rather a term to refer to a range of business insurance products that can suit support workers. Support workers may want to consider taking out an insurance package designed to protect professional carers who provide disability care, personal care and community assistance. Depending on the insurance policies a support worker takes out, these policies may offers financial protection against various risks, including liability claims, workplace injuries and property damagehether you’re working for an organisation or an independent provider.
Always read the policy wording or Product Disclosure Statement (PDS) and the Target Market Determination (TMD) to ensure that you know what is and isn’t covered in your policy, as well as whether your policy is the right fit for you.
What business insurance do I need as a support worker?
As a support worker (either employed by a company or independent), it’s important to consider taking out suitable insurance for your financial security and peace of mind. While employer-provided insurance may offer some protection for those working for an employer, self-employed workers will need to arrange their own insurance coverage. Understanding the different types of support worker insurance for Australians can help you decide what insurance you need for your circumstances.
Comparing different business insurance quotes or consulting an insurance broker or provider specialising in business insurance can be a good place for support workers to start. Insurance options for a support worker depend on whether you are employed by an organisation or self-employed. Here are some key types of insurance that support workers may like to consider:
Public liability insurance
- Covers claims for injury or property damage caused to clients, their family or members of the public.
- Useful for support workers who visit clients’ homes.
- Offers protection against legal costs and compensation payouts.
Professional indemnity insurance
- Covers claims of negligence, errors or omissions in the care provided.
- Important for support workers offering advice or specialised care services.
- Can help with legal defence costs if a client makes a claim against improper care.
Personal accident and illness insurance
- Provides financial support if a support worker is injured and unable to work regardless of whether or not injury or illness is sustained due to work.
- Helps with medical expenses and lost income.
- Particularly useful for sole traders without access to employer-paid workers’ compensation.
Workers’ compensation insurance
- Mandatory for businesses employing support workers.
- Covers workplace injuries, medical expenses and income support for employees.
- Self-employed workers are generally not covered and need personal accident insurance
Medical malpractice insurance
- Covers legal claims related to incorrect medication administration or medical care errors.
- Particularly relevant for support workers handling medications or medical tasks.
Vehicle insurance (if using a car for work)
- Covers accidents or damage if a vehicle is used for transporting clients.
- Business-use car insurance may be required instead of standard personal vehicle insurance.
Cost of business insurance for support workers in Australia
The cost of business insurance for support workers varies depending on several factors, including the type of cover, level of risk and whether the worker is employed or self-employed. Factors that may affect insurance costs include:
- Employment type. Self-employed support workers or sole traders generally pay higher premiums because they are arranging their own insurance cover. Employed workers may be covered by their employer’s insurance which can reduce their personal costs.
- Support services provided. Support workers offering basic companionship and assistance may have lower premiums. However, those providing medical assistance, medication administration or high-risk care (e.g. lifting clients, handling behavioural issues) may have higher costs due to increased risk.
- Amount of revenue. Your insurance provider may base premiums on your total annual revenue. Businesses with higher turnover may face higher insurance costs, as greater revenue can mean greater exposure to risk.
- Policy cover limits. Higher policy limits (e.g. $10 million public liability vs $5 million) may increase premiums. NDIS-registered providers often require higher coverage limits, leading to higher insurance costs. Always evaluate what you need included in your policy (and what you don’t) and carefully read the insurance policy wording before deciding on an insurance package.
- Where you live. Insurance costs can vary between states due to different regulations and risk factors. The location of doing support work also matters when calculating premiums. For example, workers in metropolitan areas may pay more than those in rural regions.
- Insurance provider. Different insurers have different pricing models, so comparing quotes from multiple providers is essential. Some offer bundled policies that reduce overall costs (e.g. combining public liability and professional indemnity insurance).
- Claims history. Support workers with a history of insurance claims may face higher premiums than workers with experience and no claims history. Maintaining a clean claims record can help reduce costs over time.
Our business insurance comparison service can provide an instant quote based on your support worker insurance requirements.
More about business insurance for support workers
What does business insurance for support workers cover?
A support worker’s business insurance cover varies depending on the insurance provider and policy, so it’s essential always to read the policy wording or PDS to know what is and isn’t covered in an insurance policy.
Business insurance policies for support workers typically cover:
- Third-party injuries or property damage (e.g. a client slipping on a wet floor you mopped)
- Legal expenses and compensation claims (e.g. if you’re accused of negligence)
- Loss of income due to injury or illness (personal accident and illness insurance)
- Damage or theft of work-related equipment (some policies include contents and theft insurance)
- Misconduct allegations (e.g. false accusations of mistreatment).
Business insurance for disability support or aged care workers
Public liability insurance, professional indemnity insurance and personal accident and illness insurance can be particularly important if you’re an independent disability support or care worker. If you work under the NDIS (National Disability Insurance Scheme), you may need to obtain specific insurance to comply with its regulations and professional duty of care requirements. Insurance for NDIS support workers is tailored to cover duties such as:
- Assisting with mobility and personal care
- Administering medication
- Managing behavioural challenges
- Driving clients to appointments.
Business insurance for self-employed disability support workers
Self-employed disability support workers (sole traders) do not have the protection of an employer’s policy to cover their work. If registered to provide services to NDIS participants, you may be required to have specific insurance to meet compliance standards as part of the NDIS Audit requirements.
When arranging your own cover, it’s important to consider things like:
- Public liability insurance: Protects against third party claims of injury or property damage.
- Professional indemnity insurance: Covers legal costs if a client alleges negligence.
- Personal accident and illness insurance: Provides income protection and safeguards financial stability if you are injured on the job.
- Workers’ compensation alternative: A tailored accident and income protection policy for self-employed workers not covered by standard workers’ compensation.
Does my employer’s insurance cover support workers?
If a registered provider employs you, your employer’s insurance will likely cover you. Their policy may include:
- Workers’ compensation insurance (covers workplace injuries)
- Public liability insurance (covers damages to third parties while performing your job)
- Professional indemnity insurance (covers negligence claims).
Confirming with your employer what their policy covers is essential, as some policies may not cover you if you work independently or outside official working hours.
Meet our business insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor strongly believes in the protection and peace of mind that all types of business insurance provide business owners. Adrian says this type of cover can be the difference between a business staying afloat and going under if trouble arises.