NDIS PROVIDER INSURANCE CASE STUDY
NDIS Personal Care Provider, Cover Bound Before a Contract Start Date
A personal care and support work company on the NSW coast had a contract signed and a start date five days away, with no cover in place. It needed $5 million professional indemnity and $20 million public liability before the first shift.
THE SITUATION
A personal care and support work company on the NSW coast contacted Tank Insurance with a contract already signed and a start date five days out. Nothing was in place.
The business expected around $600,000 in revenue in its first year. Two directors, four casual staff, and supports that put a carer with a participant around the clock: meals, personal care and general daily duties. The contract required $5 million professional indemnity and $20 million public liability.
Around-the-clock personal care is a heavier risk profile than the drop-in community access work most small providers start with. The carer is in the participant's home continuously, doing personal care, and the number of hours of exposure per participant is far higher.
OUR APPROACH
The submission went to market the same day the enquiry arrived, because the constraint was the contract date rather than the price.
- The supports were described precisely: NDIS personal care to a standard support level, carer with the participant 24 hours, meals and general duties, two directors and four casual staff, with the revenue figure and the contract start date stated up front.
- Four markets that write disability support were approached at the limits the contract required rather than at a limit the client might have preferred to pay for.
- Terms came back across a wide band, from approximately $1,700 to approximately $2,500 for the same submission on the same day.
- The placement was made at approximately $2,300 and bound the day before the contract started.
Casual staffing was disclosed at the proposal stage rather than left to be discovered. On support work risks the staffing structure changes how the liability responds, and a policy issued on the assumption of two directors working alone would not have matched the business.
THE CHALLENGES
The first challenge was simply the calendar. A contract with a fixed start date does not wait for a quoting cycle, and a certificate of currency that arrives the week after the first shift is worth nothing to the party that asked for it.
The second was the spread. The dearest term returned was around half as much again as the cheapest, on the same risk, the same limits and the same day. That is the argument for going to market properly instead of taking the first number.
The third was the limit combination. $5 million professional indemnity is high for a support work business of this size, and it was driven entirely by the contract rather than by a view of the risk. Asking the market for the contractual limit, rather than for what looks proportionate, is what makes the certificate usable.
THE OUTCOME
$5 million professional indemnity and $20 million public liability were placed at approximately $2,300 a year, bound the day before the contract commenced.
Final Solution: $5 million professional indemnity and $20 million public liability for an NDIS personal care company at around $2,300 a year, placed four days after the enquiry arrived and one day before the contract start date.
The client started the contract on time with a certificate that matched what the contract asked for, rather than a cheaper certificate at a limit the contract would have rejected.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our NDIS provider insurance guide and what NDIS provider insurance costs.
NDIS PROVIDER QUESTIONS
What this placement answers for other NDIS providers
How quickly can NDIS provider insurance be arranged?
Why does an NDIS contract ask for $5 million professional indemnity?
Is around-the-clock personal care rated differently to community access?
How much do quotes vary for the same NDIS submission?
Do casual staff need to be disclosed to the insurer?
NDIS PROVIDER INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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Tell us the limits your contract names, your support mix and your staffing. We take disability support risks to the markets that write the occupation and come back with the terms across the market, not one price.