What the NDIS rules require
Under the risk management outcome of the NDIS Practice Standards, registered providers must show that appropriate insurance is in place, including professional indemnity, public liability and accident insurance. The same indicator appears in both the core module and the verification module, so it applies whether you have a certification audit or a verification audit.
The standards do not set a minimum amount of cover. Appropriate means appropriate for your size, the supports you deliver and the risks involved.
The main types of cover
- Public liability: covers claims for injury to someone else or damage to their property caused by your business, for example damaging a participant's home or a fall during an outing
- Professional indemnity: covers claims that your advice or professional service caused loss, which matters most for therapists, support coordinators, plan managers and behaviour support practitioners
- Accident insurance: listed in the Practice Standards; ask your broker what form suits your business, such as personal accident cover
- Workers compensation: required by state or territory law if you employ workers, and it covers them if they are injured at work
- Motor vehicle: if you or your workers drive participants, check your car insurance covers business use and passengers
Sole traders and unregistered providers
If you are unregistered, no auditor will ask to see your policies. That does not remove the risk. A claim from a single incident can be far larger than a year's income, and many participants, families and plan managers ask about insurance before they book.
If you are a sole trader with no employees, workers compensation generally does not cover you as the business owner, so think about how you would manage if you were injured and could not work. Talk to a broker who understands disability services.
From 1 July 2027 mandatory registration starts expanding to higher risk supports such as personal care and daily living supports. If you will need to register, insurance will become an audit item.
What auditors look for
Auditors usually ask for current certificates of currency and check that your policies match what you actually do. Common problems are:
- Policies that do not list all the registration groups or activities you deliver, such as transport or community access
- Expired certificates of currency
- No professional indemnity for services that involve advice or assessment
- Contractors working under your registration without their own cover, or without your policy extending to them
Insurance, risk and incidents
Insurance sits inside your wider risk management system. It does not replace good practice, worker screening, training or an incident management system, and insurers will often ask about all of those when you apply. Tell your insurer promptly about incidents that could lead to a claim, alongside any report you make to the NDIS Commission.
Tips for choosing a policy
- Describe every activity you deliver, including overnight shifts, transport and high intensity supports
- Ask whether abuse and molestation claims are covered or excluded
- Check whether subcontractors and volunteers are covered
- Diary renewal dates so cover never lapses between audits