Insurance Every NDIS Provider Needs
NDIS provider insurance explained: which covers you actually need, indicative costs, what registration audits require, and the gaps that sink new providers.
The short answer: what cover you actually need
Public liability: your foundation policy
Professional indemnity: the one people forget
Workers' compensation: mandatory the day you hire
Abuse and molestation cover: the exclusion that catches SIL and personal care
Motor vehicle cover for transport and community access
Cyber, privacy and management liability
What it costs: indicative figures, not quotes
Registered vs unregistered: does insurance change?
The exclusions and mistakes that catch providers
How this plays out: a worked example
Your next steps
Frequently asked questions
Do unregistered NDIS providers need insurance?
Yes. Registration does not change your legal duty of care or your exposure to a claim, so an unregistered provider needs the same public liability, professional indemnity and (if employing) workers' compensation as a registered one. The only difference is that a registered provider must also demonstrate appropriate cover at audit against the NDIS Practice Standards. Given mandatory registration expands to high-risk supports from 1 July 2027, getting your cover in order now avoids rework.
How much does NDIS provider insurance cost per year?
For a small provider, a combined public liability and professional indemnity package commonly runs $800 to $2,000, with the total climbing once you add abuse/molestation cover, business motor per vehicle, workers' compensation and cyber. A solo coordinator with no staff may pay under $1,500; a provider with several staff and vehicles can exceed $8,000 to $12,000. These are indicative ranges — get at least two written quotes, as premiums depend on your services, turnover and claims history.
Does public liability cover abuse or molestation claims?
Usually not. Most standard public liability policies exclude abuse and molestation, which is the biggest gap for personal care and SIL providers working closely with vulnerable people. You need an explicit abuse/molestation extension, and you should check whether it covers defence costs only or also liability, plus its sub-limit. This matters more since SIL moved into mandatory registration from 1 July 2026 under registration group 0138.
What insurance do I need if I only do support coordination?
At minimum, professional indemnity — because your work is advice and judgement a participant relies on — plus public liability. If you have no employees you can't cover yourself under workers' compensation, so consider personal accident or income protection. Keep professional indemnity continuous, since it is claims-made and a lapse can leave earlier work uninsured.
Is my normal car insurance enough if I drive participants?
No. A private motor policy can be declined if the vehicle was used for business and carrying clients. You need commercial or business-use motor cover with passenger liability included, and if staff use their own cars for work you need a non-owned vehicle arrangement. Confirm the cover explicitly before any transport or community access work begins.