Insurance in Disability Support: Why Your Support Worker's Coverage Protects You

When you're interviewing support workers for personal care, domestic assistance, or community access support in Melbourne, insurance probably isn't the most exciting topic to discuss. But it's one of the most important questions you should ask: "What insurance do you carry, and can I see proof of coverage?"

As an independent NDIS support worker with $10 million in professional indemnity and public liability insurance, I want to explain what these insurance types actually cover, why the coverage amount matters, what happens if your support worker doesn't have insurance, and how insurance protects both you and the support worker when accidents or errors occur.

The Two Types of Insurance Support Workers Need

Disability support workers require two distinct types of insurance, each covering different risks:

Public Liability Insurance

Public liability insurance covers injury or property damage that the support worker causes to others (including you, the participant) during the course of their work.

What it covers: If a support worker accidentally knocks over and breaks your television while providing support, if you slip and fall due to water they spilled during cleaning, if they cause a car accident while transporting you to an appointment, or if your property is damaged due to their negligence during a support session.

What it doesn't cover: Intentional damage, criminal acts, injuries or damage you cause to yourself without the support worker's involvement, or wear and tear on your property from normal use.

Public liability is about physical accidents and property damage—the "oops" moments that can happen even with careful, competent support workers.

Professional Indemnity Insurance

Professional indemnity insurance covers claims arising from professional errors, omissions, or negligence in the services provided.

What it covers: If a support worker makes a medication error (gives you the wrong dose or wrong time), if they fail to follow your care plan and you experience harm as a result, if they provide advice or assistance that causes you harm, if they breach confidentiality and you suffer consequences, or if documentation errors lead to problems with your NDIS plan or other services.

What it doesn't cover: Services provided outside the support worker's scope of practice (like performing nursing tasks they're not qualified for), intentional misconduct or criminal acts, or claims arising from services provided while uninsured.

Professional indemnity is about mistakes in professional judgment or practice—things that go wrong not because of physical accidents, but because of errors in how I perform my role as a support worker.

Why $10 Million in Coverage Matters

You might wonder: why $10 million? Isn't that excessive for a support worker providing personal care and domestic assistance?

The coverage amount reflects the potential scale of harm, not the likelihood. Most claims will be much smaller—a broken appliance, minor injury requiring medical treatment, or a medication error with limited consequences. But insurance exists for worst-case scenarios:

If a support worker causes a serious car accident while transporting you, medical costs, vehicle damage, and potential long-term care needs could reach hundreds of thousands or even millions of dollars. If a medication error causes serious harm requiring hospitalization, ongoing treatment, or permanent injury, costs escalate quickly. If a support worker causes a house fire through negligence (perhaps leaving a stove unattended), property damage and temporary accommodation costs add up. If multiple people are affected by a single incident, costs multiply.

The NDIS Quality and Safeguards Commission requires registered providers to carry minimum insurance levels—typically $10 million for public liability and $5 million for professional indemnity. Even though I'm an unregistered provider (working with self-managed and plan-managed participants), I maintain the same coverage levels that would be required if I were registered. This ensures you have the same protections regardless of your NDIS management type.

What Happens When Support Workers Don't Have Insurance

Some independent support workers operate without adequate insurance—or without any insurance at all. This creates serious risks:

Personal liability for the support worker: If an uninsured support worker causes damage or injury, they're personally liable for all costs. If they can't pay, you might be unable to recover compensation even if you have a valid claim.

No protection for you: If you're injured due to your support worker's negligence and they have no insurance, your only option is suing them personally. If they have no assets, you may receive nothing—leaving you to cover medical costs, lost wages, or property damage yourself.

Potential NDIS complications: The NDIS expects participants to use providers with appropriate insurance. If you knowingly hire an uninsured support worker and something goes wrong, you might face questions about why you chose an uninsured provider.

Greater risk of abandonment: Support workers without insurance have incentive to disappear if problems arise, rather than properly addressing issues through insurance claims processes. An insured support worker can report incidents to their insurer and work through proper channels.

Real Scenarios Where Insurance Matters

Let me illustrate with realistic scenarios that show why insurance isn't just theoretical protection:

Scenario 1: Medication Error

During a personal care session, a support worker is assisting you with your medications from your Webster pack. The support worker accidentally opens the "evening" compartment instead of "morning" and you take your evening medications 12 hours early. This causes drowsiness and a fall, resulting in a broken hip requiring surgery.

Without insurance: You'd need to sue the support worker personally for medical costs, hospital stays, rehabilitation, and ongoing care needs. If they can't pay, you're left covering costs yourself or relying on public health system wait times.

With professional indemnity insurance: The incident is reported to the support worker's insurer. The insurer covers your medical costs, rehabilitation, any ongoing care related to the injury, and potentially compensation for pain and suffering. The claim is handled professionally through proper channels, and you're not left financially vulnerable due to their error.

Scenario 2: Transport Accident

While providing community access support and driving you to a medical appointment, a support worker is involved in a car accident. You sustain injuries requiring immediate medical treatment and ongoing physiotherapy. The support worker's vehicle and the other driver's vehicle are both damaged.

Without insurance: The support worker's personal car insurance might cover the vehicles, but who covers your medical costs? If the support worker doesn't have public liability insurance, you'd need to pursue the support worker personally for compensation, which might be impossible if they lack resources.

With public liability insurance: The support worker's insurer covers your medical expenses, rehabilitation costs, the other driver's vehicle damage, and any other losses you incurred due to the accident. The claim is processed professionally, and you're not left fighting for compensation while trying to recover from injury.

Scenario 3: Property Damage During Domestic Assistance

While providing domestic assistance, a support worker is cleaning your kitchen and accidentally knocks a pot of boiling water off the stove. The water damages your hardwood floors, requiring professional restoration costing $8,000.

Without insurance: The support worker might promise to pay for repairs, but $8,000 is a substantial sum. If they can't afford it, you're left with damaged floors or the need to pursue the support worker through small claims court—a stressful, time-consuming process with no guarantee of recovery.

With public liability insurance: The damage is reported to the support worker's insurer, they assess the claim, and arrange for floor restoration. Your property is repaired without you needing to chase the support worker for payment or worry about whether they can afford it.

Insurance and Transport: A Critical Area

Transport during support sessions deserves special attention because it combines high-risk activity (driving) with vulnerable participants (people with disabilities who may have reduced ability to protect themselves in accidents).

When I transport you in my vehicle as part of community access support, several insurance considerations apply:

My personal car insurance: This covers standard vehicle damage and basic third-party injury, but typically has limitations around commercial use. Using my vehicle for paid support work might technically violate a standard personal policy.

Business use coverage: I maintain car insurance that explicitly covers business use—driving participants as part of paid support services. This ensures coverage won't be denied because the trip was work-related.

Public liability insurance: This provides additional coverage beyond standard car insurance, particularly for injuries to participants I'm transporting and any gaps in car insurance coverage.

If your support worker transports you regularly but hasn't verified their car insurance covers business use and they don't have public liability insurance, you're at significant risk. A serious accident could leave you with substantial medical costs and no clear path to compensation.

Workers Compensation: The Missing Piece

One type of insurance that individual support workers typically don't carry is workers compensation insurance. This creates an interesting situation worth understanding:

Workers compensation covers injuries the worker sustains while performing their work. As a sole trader with no employees, I'm not required to carry workers compensation insurance for myself (though I could choose to purchase personal injury insurance).

What this means for you: If a support worker is injured while providing support to you—say they strain their back while assisting with transfers—they can't claim workers compensation. They would rely on personal health insurance or public health system. This is standard for independent contractors and sole traders.

However, this also means I'm incentivized to work safely to avoid injury, since I bear the full consequence of any workplace injuries I sustain. This alignment of interests actually benefits you—Support workers are motivated to use proper manual handling techniques, work within my physical capabilities, and not take dangerous shortcuts.

Verifying Insurance: What to Ask

When interviewing potential support workers in Melbourne's inner south suburbs like South Yarra, Prahran, or Windsor, specifically ask about insurance:

"What insurance do you carry?" You want to hear both public liability and professional indemnity mentioned. If they only mention one type or seem unclear, that's a red flag.

"What are your coverage limits?" Minimum acceptable would be $5 million for each type, though $10 million is better and indicates the support worker takes insurance seriously.

"Can you provide proof of current insurance?" Legitimate support workers will readily provide certificates of currency (documents from the insurer confirming coverage is current and active). If someone hesitates or can't provide proof, don't hire them.

"Does your car insurance cover business use?" If the support worker will be transporting you, verify their car insurance allows for paid transport of clients. Standard personal policies often don't.

"When does your insurance expire and how do you handle renewals?" Insurance must be continuous. You want assurance that coverage won't lapse between policy periods.

Certificate of Currency: What to Look For

A certificate of currency is a document from an insurance company confirming that a policy is current and active. When reviewing a support worker's certificate of currency, check:

The insured party name: It should match the support worker's business name or legal name exactly.

Policy type: Should clearly state "Public Liability" or "Professional Indemnity" (you should receive separate certificates for each).

Coverage amount: Should show the dollar limit of coverage (e.g., "$10,000,000").

Policy period: Start and end dates showing the coverage is currently active (not expired).

Issuing insurer: Should be a legitimate, recognized insurance company (you can verify by looking them up online).

Don't accept vague statements like "I have insurance" without seeing actual documentation. Certificates of currency are standard business documents that legitimate, insured support workers should readily provide.

Insurance and NDIS Management Types

Your NDIS management type affects insurance considerations:

NDIA-Managed Participants

If you're NDIA-managed, you can only use registered NDIS providers. Registration requires meeting NDIS Commission insurance standards, so your providers should automatically have appropriate coverage. However, it's still worth verifying—ask to see certificates of currency to confirm coverage is current.

Plan-Managed Participants

If you're plan-managed, you can use both registered and unregistered providers. When choosing unregistered providers (like me), you're responsible for verifying they have appropriate insurance. Your plan manager might ask for proof of insurance before processing payments, but ultimately it's your responsibility to ensure the provider is adequately insured.

Self-Managed Participants

If you're self-managed, you have complete flexibility in choosing providers but also complete responsibility for due diligence. The NDIS doesn't verify insurance for you when you're self-managed. You must ask for and verify certificates of currency before engaging any support worker.

This flexibility is valuable—you can choose independent providers like me who might offer better rates or more personalized service than large agencies. But it comes with responsibility to verify credentials, including insurance.

What Insurance Doesn't Cover

Understanding insurance limitations is important for realistic expectations:

Intentional acts: If a support worker deliberately harms you or your property, insurance won't cover it. Insurance is for accidents and errors, not crimes.

Excluded services: If a support worker provides a service outside their qualifications (like nursing tasks they're not certified for) and causes harm, insurance might not cover it because they were working outside their scope.

Pre-existing damage: If a support worker is accused of breaking something that was already broken, or injuring you when the injury was pre-existing, insurance won't cover it.

Normal wear and tear: Insurance doesn't cover gradual degradation of property from normal use over time.

Your own negligence: If you're injured due to your own actions without support worker involvement, their insurance doesn't apply.

Insurance Costs and Pricing

Some participants wonder why independent support workers charge what they do, when they're not part of a large agency with overhead costs. Insurance is part of the answer.

Professional indemnity and public liability insurance for disability support work isn't cheap. Annual premiums can range from several hundred to several thousand dollars depending on coverage limits, services provided, and claims history. For a sole trader support worker, this is a significant business expense that must be factored into pricing.

When I charge 25% below NDIS price guide maximums, I'm covering insurance costs, training and certification maintenance, professional development, taxes, and administrative time—while still providing sustainable income. Support workers who charge significantly less than market rates might be cutting corners somewhere, and insurance is an easy place to cut corners if you think accidents won't happen.

The old saying "you get what you pay for" applies to insurance. A support worker charging suspiciously low rates might not be carrying adequate insurance (or any insurance), which puts you at risk if something goes wrong.

What to Do If Something Goes Wrong

If an incident occurs during a support session that might involve an insurance claim, here's the proper process:

Immediate response: Address any immediate safety concerns (medical attention for injuries, securing property to prevent further damage, documenting the scene with photos if possible).

Report to the support worker: Notify the support worker immediately about what happened. Don't assume they already know or will figure it out later.

Document everything: Write down what happened, when it happened, who was present, and any immediate consequences. Take photos of damage or injuries. Keep all related receipts or medical documentation.

Insurance notification: The support worker is required to notify their insurer of any potential claim promptly. The support worker will provide you with claim reference numbers and insurer contact information.

Cooperate with investigation: Insurance companies will investigate claims. This might involve providing statements, allowing inspection of damage, or providing medical records. Cooperation helps ensure claims are processed efficiently.

Don't sign releases prematurely: If the support worker or their insurer asks you to sign any documents releasing them from liability, consider seeking independent advice first. You want to ensure any settlement adequately covers your losses.

Insurance as Part of Professional Practice

Carrying appropriate insurance isn't just about compliance or risk management—it's part of professional practice. It signals:

Commitment to accountability: I'm willing to be held accountable if I make mistakes, and I've put systems in place to ensure you're not financially harmed by my errors.

Financial stability: I can afford professional insurance premiums, suggesting my business is sustainable and I'm not operating on such tight margins that I'm cutting essential expenses.

Understanding of risks: I recognize that disability support work involves real risks—to you, to me, and to property—and I've taken appropriate steps to manage those risks.

Professional standards: I'm meeting the same insurance standards required of registered NDIS providers, even though as an unregistered provider working with self-managed and plan-managed participants, I could legally operate with less coverage.

Questions That Should Concern You

Red flags when asking about insurance:

"I've never had a claim, so I don't need much coverage." (Insurance is for unexpected events, not past claims.)

"My rates are lower because I don't waste money on expensive insurance." (This isn't where you want your support worker to save money.)

"Can we just handle it between ourselves if something goes wrong?" (This puts all risk on you if they can't afford to pay.)

"I'll get insurance once I have more clients." (What happens if you're injured before they get insurance?)

Hesitation or inability to provide certificates of currency when asked. (Every insured person can get these documents easily from their insurer.)

Your Protection Checklist

Before engaging any support worker for personal care, domestic assistance, or community access in Melbourne, verify:

They carry both public liability and professional indemnity insurance. Coverage limits are at least $5 million each, preferably $10 million. They can provide current certificates of currency for both policies. If they'll be transporting you, their car insurance covers business use. Insurance is continuous (check renewal dates and ask about renewal processes). The insurer is a legitimate, recognized insurance company. And coverage specifically includes the services they'll be providing to you.

This might seem like excessive due diligence, but remember: you're inviting this person into your home, trusting them with intimate personal care, and potentially riding in their vehicle. Verifying they have insurance that protects you if things go wrong is basic prudence.

Why I Maintain $10 Million Coverage

As an independent support worker just starting out in Melbourne's inner south, I could have chosen lower coverage limits to reduce costs. But I maintain $10 million in both public liability and professional indemnity insurance because:

It provides equivalent protection to what NDIS-registered providers must carry, ensuring my participants have the same safety net. It demonstrates I'm serious about professional practice and accountable service delivery. It protects my participants from worst-case scenarios, even if they're unlikely. It gives peace of mind to participants and their families when choosing an independent support worker. And it aligns with my commitment to transparency and dignity in disability support.

Insurance is one of those things you hope you never need but are deeply grateful to have when something goes wrong. It's the safety net that allows trust between participants and support workers, knowing that accidents or errors won't create financial devastation.

Related Resources

• Support services available in Melbourne's inner south
• NDIS Commission - Provider obligations including insurance requirements
• Frequently asked questions about safety and insurance
• Contact me to request certificates of currency or discuss insurance coverage