Professional Indemnity (PI) insurance is different to most other insurances. PI is a 'claims-made' policy, meaning it only provides cover for claims when the policy is in force. The policy holder cannot lodge a claim on PI insurance that has expired.
It is important that as a physiotherapist, you are aware that you still have an exposure from past services provided, even when no longer practicing. So, if you are planning to retire or will no longer be practicing, don't risk it. Protect yourself with run-off professional indemnity insurance.
Run-off PI insurance covers you for any claims that may come to light at a later date, even when you are no longer a practicing physiotherapist.
Insurance House supports physiotherapists by providing PI insurance with added protection, including unlimited retroactive cover and optional run-off protection at no extra cost.
Ceasing to practice
You might be retiring, changing profession or simply closing your practice for family or lifestyle reasons. Whatever the reason, you should notify your insurance provider in writing of the date that you will cease practice and request run-off PI cover. This will give you peace of mind that any valid claims that may arise from your time in practice will be covered in the years ahead.
Importantly, you must declare any known circumstances that could potentially give rise to a claim, just as you do now in your annual claims declaration when you renew your PI policy.
When your ongoing run-off cover is approved, you will receive a certificate in confirmation. Subject to the terms and conditions of your policy, you are then protected for new and valid claims resulting from any past physiotherapy services you've provided.
Going back into practice
Should you decide in the future to return to physiotherapy - even for a few hours a week - you will again be subject to AHPRA registration and will need to take out PI insurance again. At this point, your run-off cover will cease. With Insurance House, your unlimited retroactive cover will again support you in the event of any claims relating to your previous practice.
Our advice is general in nature. To read the full General Advice Warning click here.