Even the most diligent and experienced physiotherapist can face a claim—and the same is true of your practice. 

Your practice has its own liability exposure, which means it can be held liable for any harm caused to clients, patients, suppliers or members of the public due to its professional services or business activities.

So how can you protect your practice?

What is entity insurance?

Entity insurance is combined professional indemnity and public liability insurance for your practice. 

It responds to the practice’s civil liability in cases of third-party allegations of negligence, error, omission, malpractice or breach of professional duty that result in compensable personal injury, property damage or financial loss.

Notably, entity insurance is different from your individual professional indemnity insurance and that of consultants or contractors engaged by your practice. 

Your practice’s liability at law is not covered by these other policies. This is why entity insurance is essential if you run a practice. 

Cover could respond if your practice is served with a claim or letter of demand relating to negligent care, making a mistake, causing an injury or accident or causing property damage.

This type of cover could assist with the costs of a claim and legal defence costs. 

Whether you are a sole trader, have employees or work with subcontractors, entity insurance is important.

Risks to consider

Imagine that an employee at your practice receives a complaint regarding the care they provided to a patient. 

Their patient also makes separate allegations against your practice in the complaint, suggesting that the practice is liable for the negligence of the employee and also acted negligently and contributed to the patient’s loss.

Unfortunately, your practice would be considered a codefendant and could be held liable in this situation.

BMS has seen an increase in claims directed at both the practice and the treating practitioner. 

For example, under the APA member insurance program, a recent claim made against a practice due to their former employee’s negligence resulted in defence costs exceeding $120,000. 

For this reason, safeguarding your practice with entity insurance is important.

As Shamus Breen, Managing Director of BMS, Affinity, Australia, says: ‘We’re seeing a sharp increase in claims being directed towards the practice, not only the actual treating practitioner.'

APA member insurance program

If you’re part of the APA member insurance program and hold APA professional indemnity and public and products liability insurance, it’s important to note that entity insurance does not form part of this cover. 

These are standalone and separate products. 

The APA professional indemnity and public and products liability insurance is cover for you as an individual. 

The entity insurance is to cover your practice’s separate liability.

If you require entity insurance, this policy can be purchased separately via BMS. For more information, speak to the BMS team on 1800 931 068 or email apa@bmsgroup.com.

>> Disclaimer: You must be a current Australian Physiotherapy Association (APA) member to be eligible to register for the APA member insurance program. You must be part of the APA member insurance program in order to access additional cover, which includes but is not limited to Entity Insurance. If your membership ceases you will not be offered renewal when your policy expires. In offering this insurance to our members APA is a distributor of BMS Risk Solutions Pty Ltd (BMS) AFSL 461594, ABN 45161187980. The insurance is issued by BMS on behalf of AAI Limited ABN 48 005 297 807 trading as Vero Insurance (the insurer). BMS acts on behalf of the insurer and not on your behalf. This is general advice only and BMS has not considered whether it was suitable for your personal circumstances, current 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 receives an annual payment from BMS which is used for insurance related marketing and professional development activities to support our members.