Having the appropriate professional indemnity insurance (PII) is a registration standard for physiotherapists in Australia.
PII insures physiotherapists against civil liability incurred by, or loss resulting from, a negligent act, error or omission in their
conduct. 

It ensures that patients can be compensated for injuries resulting from the action of a practitioner. 

It is the responsibility of each physiotherapist to ensure that they are registered as a health practitioner and have adequate PII
cover. 

Failing to hold PII can constitute professional misconduct and may result in disciplinary action. 

If a physiotherapist discovers that their PII cover has lapsed, they are required to provide written notice to the Physiotherapy Board of Australia within seven days of becoming aware of it.

Board chair Kim Gibson said that having PII is a professional responsibility that protects both physiotherapists and their patients.

‘Ensuring that you are registered and adequately insured is a professional obligation for which there are no exemptions,’ Kim said. 

‘If something happens to one of your patients during a consultation and you’re not covered, then the patient isn’t covered either.

Likewise, if you practise without PII and something goes wrong, you could face very substantial costs.’

Common scenarios involving breaches of this standard include physiotherapists who:

• fail to renew their registration and continue to practise unregistered for a period of time. Even though they often continue to hold PII, this cover will not be honoured by the insurer if the physiotherapist is practising while unregistered
• fail to renew both registration and PII cover when they are up for renewal at the same time
• renew their registration but do not renew their membership with the APA, which often provides their PII cover.

‘I urge all physiotherapists to set reminders in their calendars to ensure they renew their registration and PII. 

In addition, it is essential that your contact details are up to date so that Ahpra and your insurer can reach you without issue,’ said Kim.

What does appropriate PII cover look like?

PII arrangements need to comply with the Registration standard: professional indemnity insurance arrangements developed by the Board. 

They must cover all aspects of a physiotherapist’s practice regardless of whether they are working in private, public or non-government sectors.

This requires coverage for all locations and settings where a physiotherapist might work. 

Even when practising physiotherapy in an unpaid or volunteer capacity, a physiotherapist’s PII must meet the standard. 

If a physiotherapist is covered by a third-party PII arrangement, it is their responsibility to ensure that this cover meets the standard. 

If it does not meet the standard, the physiotherapist must take out additional appropriate cover.

If any area of a physiotherapist’s practice is excluded from their PII cover, they must not practise in that area.

If a physiotherapist’s PII arrangements are provided by their employer and they intend to practise outside their stated employment, they must have individual PII arrangements in place to cover that practice. 

This may include cover for undertaking:

• the practical components of continuing professional development
• study involving patient treatment
• volunteer work (unless already separately covered in that capacity, eg, by the volunteering organisation).

PII must be adequate and appropriate to a physiotherapist’s practice. 

Physiotherapists should consider the greater risk of harm to patients of some forms of practice and subsequent changes to their practice when assessing the adequacy and appropriateness of their cover.

Physiotherapists should also consider run-off cover, which insures them against claims arising out of activities that occurred
when they were conducting a particular practice or business, after they have ceased that practice or business. 

This cover may be included in PII or may need to be purchased separately.

Further reading

The guidelines for professional indemnity insurance provide more detailed information about how to meet the standard for PII
arrangements. They are available on the Board’s website at physiotherapyboard.gov.au/Codes-Guidelines/PII-guidelines.aspx

Content supplied. Go to physiotherapyboard.gov.au to find out more about the Board and its resources supporting safe practice.