Professional indemnity insurance
Professional indemnity insurance
The Nursing and Midwifery Board of Australia (NMBA) requires that nurses and midwives only practice when they are covered by an appropriate professional indemnity insurance (PII) policy and nurses and midwives must declare each year that they have complied with this requirement. Nurses and midwives may be covered by a PII policy or through their employer.
While employers are responsible for maintaining a variety of insurances, most Association members are also able to comply with the NMBA’s requirements, by virtue of the Association holding PII cover for its members, without having to check the employer’s insurance status.
Unlike most PII policies or cover provided by an employer, the Association’s PII policy also extends to cover for inquiry costs related to coronial inquests and professional disciplinary matters.
Need to know
- Professional Indemnity: $5 million per claim
- Inquiry Costs: $100,000 per insured (eg for coronial inquests and NCAT)
- Public & Products Liability: $10 million per claim
NSWNMA’s Professional Indemnity Insurance (PII) is available to:
- Financial members* (who are employees)
- Members on short-term contracts interstate secondary to their main employment**
- Members who undertake nursing work secondary to their main employment**
- Members affected by recency of practice who are unable to access PII via an employer
* Members must have been financial at the time of the incident giving rise to a claim or inquiry.
** Members whose substantive work is as an independent contractor are not covered – such independent contractors should have their own PII insurance.
The PII policy does not cover:
- Claims arising from work undertaken as an independent contractor if that work provides the substantive income (i.e. income is greater than that received from an employer)**
- Home birth practices
- Private practice birthing services.
** Members whose substantive work is as an independent contractor are not covered – such independent contractors should have their own PII insurance.
The Association should be contacted for advice and legal assistance will be provided in accordance with our standing practice.
No. Members who were financial at the time of the incident giving rise to a claim or inquiry are covered.
No. The limits stated here are the maximum.
Yes. This policy covers those members required to fulfill recency of practice criteria under AHPRA’s registration guidelines.
Where midwives are employees of either a public or private hospital they are covered, however, there is no cover provided for home birth practices nor private practice birthing services.
Claims Process
You must notify the Association as soon as you are aware of a claim or circumstance that is likely to give rise to a claim or inquiry.
Members who are required to provide statements or attend interviews in regard to adverse incidents should contact the NSWNMA for assistance. Should any member be requested to either respond to or attend any official enquiry, they should contact the NSWNMA immediately for assistance. The NSWNMA will represent members, referring them to qualified lawyers if required.
The Association will monitor the progress of any matter and refer to insurers if required under the terms of our insurance policy.
Provided that you are a financial member of the Association at the time of any incident giving rise to a claim or inquiry and you contact the Association to manage your matter, we will handle the reporting of any claims to our insurers.
