Do physiotherapists need entity insurance?

foot and ankle in white sneaker stepping on yellow banana skin

Do physiotherapists need entity insurance?

foot and ankle in white sneaker stepping on yellow banana skin

The APA’s insurance partner BMS explains the role of entity insurance in legal protection for physiotherapists and their practices.

If, for example, a patient slipped and fell on the premises of a physiotherapy practice, it’s possible for both the clinician and
their business to be held liable. 

However, there are several types of cover that can help protect physiotherapists and their businesses, one of which is entity insurance.

What is entity insurance?

Entity insurance is professional indemnity and public liability insurance for businesses. 

In the event that a business is named in a complaint, this type of cover could come into play. 

For example, entity insurance responds to claims relating to:

  • providing negligent care
  • making a mistake
  • excluding something that shouldn’t have been excluded
  • causing injury or accidents
  • causing property damages.

Entity insurance cover can help physiotherapists manage an allegation or claim made against their business. 

It can also assist with the costs of patient damages and legal defence costs.

This cover is useful for clinicians who:

  • are a sole trader or have a business name but no employees
  • have a business that employs staff, contractors and/or casual workers.

If a patient claimed that they were given insufficient care at a clinic, for example, and included the business’s name in the claim, that business’s entity cover could step in.

How does it differ from other types of cover?

Entity insurance is one of a suite of different types of cover that could assist in protecting a physiotherapist’s business.

Professional indemnity and public and products liability insurance 

Professional indemnity cover is for allegations or claims made against a practitioner due to injury, negligence, error, omission, malpractice or breach of professional duty.

Public liability insurance helps cover actual or alleged negligence caused by a practitioner that results in bodily injury or property damage to a third party.

Products liability insurance assists in the event that an allegation or claim is made as a result of a product that a practitioner sells, manufactures or supplies.

Business insurance

Business insurance covers various general elements relating to business property and interruption to operations. 

It typically includes property damage, contents, stock, machinery breakdown and theft.

Entity insurance

Entity insurance provides cover for a business name in the event that it is named in an action due to injury, negligence, error, omission, malpractice or breach of professional duty. 

If a claim is made against an employee and the business they work for is included in the claim, this cover can step in for that business name. 

It does not extend to cover employees for their actions while working within the business.

Cyber insurance

Cyber insurance offers cover in the event of a cyber incident. 

This may include breaches of security, data or network-related software, programming and systems. 

Cover may be provided for losses suffered by a business, claims made by third parties affected and/or business interruption in the event of a breach. 

Who would need entity insurance? 

This type of cover is important for sole traders, physiotherapists who have employees and those who work with subcontractors. 

Unexpected events can happen and it’s possible for a business to be named in a complaint involving either the business or an employee at any time. 

In this situation, entity insurance could help.

How can BMS help?

Any physiotherapist who is part of the APA member insurance program has exclusive access to business insurance and entity insurance with BMS. 

To get a quote, simply visit the BMS portal, call BMS brokers on 1800 931 068 or email


Managing risk in HR in the workplace-part 1 of 3 series. 

Disclaimer: You must be a current APA member to be eligible for the APA member insurance program. If your membership ceases you will not be offered renewal when your policy expires. In arranging this insurance for our members, the APA is acting as a distributor of BMS Risk Solutions Pty Ltd (BMS) AFSL 461594, ABN 45161187980. This insurance is issued by BMS under a binder with Certain Underwriters at Lloyd’s. When acting under a binder BMS is acting as agent for the insurer and not as your agent. This is general advice only and BMS has not considered whether it was suitable for your particular objectives, needs or financial situation. Please read the Policy Wording and the BMS Terms of Engagement which contains the Financial Services Guide before making a decision about purchasing this policy. APA may receive a percentage of the commission paid to BMS by the insurer and/or a fee per policy.

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