Insurance for Therapy Business

Key risks

Common industry risks

Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.

The Risks

Risks Response

Privacy & Health Records

Alleged breach of privacy or health records legislation in the handling of sensitive client information, resulting in a claim or complaint.

Professional Indemnity Insurance may respond to claims arising from alleged breaches of privacy or health records obligations.

Investigation Costs

A complaint about your therapy services triggers a formal investigation by a regulatory body or professional association, resulting in legal costs.

Investigation Costs is a benefit commonly included in Professional Indemnity Insurance, which may cover legal expenses arising from a regulatory inquiry.

Third Party Property Damage

Liability arising if your therapy work damages a client's belongings, premises or other third party property.

Public Liability Insurance may respond to third party property damage claims arising from your business activities.

Professional Indemnity

Liability arising if a client claims your therapy advice or professional services caused harm, loss or financial damage, and seeks compensation.

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Public Liability

Liability arising if your therapy services cause third party injury or property damage to a client, visitor or member of the public.

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Privacy & Health Records

The Risks

Alleged breach of privacy or health records legislation in the handling of sensitive client information, resulting in a claim or complaint.

Risks Response

Professional Indemnity Insurance may respond to claims arising from alleged breaches of privacy or health records obligations.

Investigation Costs

The Risks

A complaint about your therapy services triggers a formal investigation by a regulatory body or professional association, resulting in legal costs.

Risks Response

Investigation Costs is a benefit commonly included in Professional Indemnity Insurance, which may cover legal expenses arising from a regulatory inquiry.

Third Party Property Damage

The Risks

Liability arising if your therapy work damages a client's belongings, premises or other third party property.

Risks Response

Public Liability Insurance may respond to third party property damage claims arising from your business activities.

Professional Indemnity

The Risks

Liability arising if a client claims your therapy advice or professional services caused harm, loss or financial damage, and seeks compensation.

Risks Response

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Public Liability

The Risks

Liability arising if your therapy services cause third party injury or property damage to a client, visitor or member of the public.

Risks Response

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

Claim examples

Therapy Business claim examples

Real-world examples of how our insurance helps protect Hotel or Motel and their clients

Tow of vehicle

SCENARIO

After a collision on the way to an appointment, your car can't be driven and needs towing from the scene to a repairer.

WHY IT’S COVERED

Commercial Motor Vehicle insurance may respond to towing costs for your insured vehicle following an accident.

Third Party Damage

SCENARIO

While administering treatment, you accidentally damage a client’s expensive necklace, and they seek compensation for the loss.

WHY IT’S COVERED

Public Liability insurance may respond to third party property damage claims arising from your business activities.

Negligent Advice

SCENARIO

A client claims they misunderstood guidance given during a therapy session and now alleges that it caused serious conflict within their family, damaging their personal relationships.

WHY IT’S COVERED

Professional indemnity insurance may respond to claims arising from negligent advice or recommendations made in the course of providing professional services, including associated legal defence costs.

Physical Injury

SCENARIO

During a therapy session, you apply a hands-on technique incorrectly and the client suffers a physical injury. They later claim your treatment caused ongoing pain and worsened their condition.

WHY IT’S COVERED

Public Liability insurance is designed to cover third party injury claims and defence costs, arising from your business activities.

SCEANRIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT'S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

Tow of vehicle

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

IS THIS COVERED?

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

FAQs

Therapy Business insurance queries

How do I make a claim?

You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.

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How do I make a claim?

What is a Certificate of Currency?

A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.

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What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Professional Indemnity insurance typically operates on a "claims made and notified" basis, meaning both the claim must be made against you AND you must notify the insurer during the active insurance period (or discovery period if applicable). Late notification after policy expiry may not be covered unless you have purchased an extended discovery period. Prompt notification is essential to protect your rights under your insurance.

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How quickly do I need to report an incident to my insurer?

What is a retroactive date?

A retroactive date is the earliest date from which a claim can arise and still be covered under your policy. Professional Indemnity and certain other claims-made policies will only respond to claims arising from acts, errors or omissions that occurred on or after the retroactive date listed in your policy schedule. If an incident occurred before your retroactive date, it typically will not be covered even if the claim is made during the current policy period. Maintaining continuous cover without gaps helps protect your retroactive date — check your policy schedule or ask your broker if you are unsure of your retroactive date.

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What is a retroactive date?

Do mental health practitioners need Professional Indemnity insurance?

Professional Indemnity insurance is designed to cover claims arising from professional negligence, errors or omissions in the services you provide. mental health practitioners registered with AHPRA are generally required to hold Professional Indemnity insurance as a condition of their registration. Even practitioners who are not AHPRA-registered may find that their professional association or employer requires current Professional Indemnity cover. Without appropriate cover, you may be unable to practise and could be personally liable for legal costs and compensation claims. Speaking with an insurance broker can help you understand the level of cover appropriate for your circumstances.

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Do mental health practitioners need Professional Indemnity insurance?

What insurance do therapy businesses typically have?

The insurance therapy businesses commonly hold depends on how they operate and the services they provide. This typically includes Professional Indemnity insurance, which is designed to respond to claims of professional negligence or breach of duty, and Public and Products Liability insurance, which is designed respond to third party bodily injury or property damage claims arising from business activities. Both covers may extend to investigation costs, and depending on the policy, defamation. Additional covers such as Commercial Property, Business Interruption and Employee Fidelity may also be relevant depending on business structure and services offered.

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What insurance do therapy businesses typically have?

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The information contained on this website is general advice only and has been prepared without taking into account your individual needs, objectives and financial situation. It should not be relied upon as advice. All insurance products are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please consider your personal circumstances and read the relevant Product Disclosure Statement, Target Market Determination, Policy Wording, and Financial Services Guide.

Insurance for Therapy Business

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Common industry risks

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

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Therapy Business claim examples

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Therapy Business insurance queries

How do I make a claim?

How do I make a claim?

What is a Certificate of Currency?

What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

How quickly do I need to report an incident to my insurer?

What is a retroactive date?

What is a retroactive date?

Do mental health practitioners need Professional Indemnity insurance?

Do mental health practitioners need Professional Indemnity insurance?

What insurance do therapy businesses typically have?

What insurance do therapy businesses typically have?

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