Running a business comes with inherent risks. Imagine if your business was broken into. Would you be able to continue operating as usual? If your equipment and stock were damaged, would your business be able to recover from the financial loss?

This is where business insurance can step in to help cover you for risks related to running your business. Cover can include things like:

• business interruption as a result of an insured event that halts your business operations
• contents, including machinery and equipment breakdown.

Other types of business insurance

There are different types of cover that can form part of or complement a business insurance policy or ‘business pack’ as it’s often referred to:

• entity insurance
• personal accident and illness insurance
• management liability
• cyber liability.

Entity insurance

Patients engaging with your services are legally owed a duty of care on behalf of your business name.

When a situation arises, there is an increasing trend to claim against the business that the patient received their services from rather than the treating professional or, more commonly, both.

This is considered vicarious liability whereby the business is responsible for the services provided by their employees, contractors and staff.

It is therefore important to consider whether your business should have a business entity insurance policy.

This policy would respond in circumstances where your business name is mentioned.

Personal accident and illness insurance

When you rely on being able to work to put food on the table, an accident or sudden illness is one of the last things you can afford.

Personal accident and illness insurance covers you for lost income if you can’t perform your usual work and earn your regular income.

Your premiums are generally tax-deductible so personal accident and illness insurance doesn’t need to be a drain on your finances.

Management liability

Managers and directors of a business can be sued for mismanagement that causes loss to others.

They can even be held personally liable—potentially putting their own assets and savings at risk.

Management liability insurance can provide protection against the financial exposures that come with managing a company.

It can ensure that you are able to defend, settle or pay compensation claims without putting your business or personal finances at risk.

Cyber liability

Cyber and privacy liability is one of the fastest growing areas of risk for healthcare practitioners and physiotherapists are not immune.

Anyone who maintains or transmits patient information electronically is vulnerable to a cyber breach.

This breach can range from a minor occurrence, such as a colleague accessing information on your computer, to the theft of thousands of patient records.

A cyber liability policy could help protect you if you or your business has been involved in a cyber breach or privacy violation.

Cover could include costs for your legal defence, investigative costs, notification and response costs and costs awarded to the patient(s) affected by the breach/violation.

It’s important to carefully review the policy wording and exclusions when considering an insurance policy.

Business insurance checklist

Use this guide to consider what insurance you might need when setting up and running your physiotherapy clinic.

I need to insure my business name in case it is named in a claim as well as or instead of my employee.

Adding entity insurance could help close the gap between your professional indemnity and business insurance policy.

I have business contents and/or property to insure.

Look for business insurance that includes cover for business contents and any property you own or add it separately.

I need to ensure I have cover for operating expenses and/or loss of income if my business is closed or unable to operate as normal as a result of an insured event.

Look for business insurance that includes cover for business interruption and carefully review what is considered an interruption.

I need to cover the risk of a patient suffering an injury (such as a slip or fall) on my business premises.

Look for business insurance that includes cover for public liability or add it separately.

I want to protect the managers of my business if wrongful or negligent acts occur in execution of their duties.

Management liability could cover typical business-related risks such as corporate risk, statutory liability, employment disputes and tax investigation costs.

I need to insure business vehicles.

Consider a motor insurance policy that meets your business vehicle needs.

I have a web presence and/or hold sensitive patient information.

If you have data, you have risk.

A cyber liability policy could help to protect your business from cyber-related incidents.

>>As a member of the APA, you have access to a range of insurance products from the APA’s insurance partner, BMS. Click here for more details.

>>Disclaimer: 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. The insurance is issued by BMS under binder with Certain Underwriters at Lloyds. When acting under a binder BMS acts as agent for the insurer and not as your agent. This is general advice only and BMS has not considered whether it is suitable for your personal objectives, needs or financial situation. Please read the Policy Wording and Financial Services Guide before making any decision about purchasing this policy.