Professional indemnity insurance (PII) for nurses and midwives

Why professional indemnity insurance is important for nurses.

The nursing industry features a diverse mix of working situations. For example there are entire nursing teams is hospitals as well as personal carers in homes and more. Regardless of where the nursing care takes place however, there's a real possibility of making errors. This includes:

  • Administering the wrong medication to a patient
  • Failing to carry out instructions properly to care for a patient
  • Being wrongfully accused of unprofessional conduct either while performing clinical duties or administration work
  • Giving incorrect advice to a patient
  • Applying or removing dressings negligently, resulting in damage or injury to a patient
  • Making a mistake or error in judgement due to being overworked

Professional indemnity insurance (PII) is designed to protect you in the event where you make a mistake and are sued. Although you take care to ensure these situations don't happens, PII will give you a peace of mind knowing you're covered - just in case.

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Is indemnity cover not already included?

You may be offered some level of cover under your employer’s professional indemnity policy, but it’s also a good idea to compare your options cover for yourself. Some professional associations offer professional indemnity cover to members. You can also take out a policy from an insurance provider.

Professional indemnity insurance offers financial protection against the many risks nurses face, ensuring they can simply perform their vital jobs without having to worry about the damage their finances and careers would suffer if something went wrong.

PII insurance quick tips

Insurance requirements

professional indemnity insurance

Professional indemnity insurance

In Australia, the Nursing and Midwifery Board of Australia (NMBA) requires Nurses / Midwife’s to take out PII in order to practice.

  • Required

public liability insurance

Public liability insurance

Public liability insurance help protect you against accidental injuries and damages that happen at your practice or at your patients house for example.

  • Recommended

cyber security

Cyber liability

If you store information about patients then cyber liability insurance should be considered. It protects you against the expenses if this information is compromised.

  • Recommended

Here's a sample quote to give you a rough idea of how much cover costs:

Insurance type Professional Indemnity
Quote details
  • $60,000 annual salary
  • Enrolled nurse
  • $1,000,000 in PII and $10,000,000 in public liability cover
Cost estimate $28.42 per month
Insurer Vero

What is professional indemnity insurance and what does it cover?

Professional indemnity insurance is a requirement for all nurses in Australia to meet Nursing and Midwifery Board of Australia (NMBA) registration standard. While cover differs from policy to policy, you can generally expect cover:

  • If you are sued for malpractice or negligence
  • If you are sued for damages as a result of a public liability claim
  • If, in connection to your work, you are sued for defamation, libel or slander
  • If you are sued for breaching intellectual property rights
  • If you are called upon to appear before the Coroner
  • If you are reported to AHPRA
  • If you are sued after performing a Good Samaritan Act

Policies provide cover for the cost of your legal defence, as well as compensation for your time required to attend court or an inquiry. If you are required to pay compensation or damages, this is catered for under a professional indemnity policy as well, as is the cost of hiring a public relations consultant to limit or repair any damage to your reputation.

In order to determine exactly what is covered under a professional indemnity insurance policy, read its product disclosure statement closely.

While being compelled to buy an insurance is somewhat annoying, you can actually claim your PII premiums as a deduction on your tax return.

Who needs PII cover?

In Australia, in order to fulfil your registration requirements you’ll need to have adequate professional indemnity insurance if you are:

  • A midwife
  • An enrolled nurse
  • A nurse practitioner
  • A registered nurse
  • Community health nurse
  • An at home nurse (not including hospitals)

You won’t need to buy cover if you’re currently studying nursing or midwifery, or if you have a non-practising registration.

How do you get professional indemnity insurance for nurses or midwives?

In regards to buying PII for nurses or midwives, you’ve got a few options:

  • Buy your own cover. You can buy your own cover either directly from an insurer or with the help of an adviser. This is generally suited to nurses and midwives that are self employed. If you do take out your own cover, you’ll need to keep evidence of your insurance for at least five years.
  • Cover through employer. You can be supplied cover through your employer and may be suitable to nurses or midwives that work for a single employer.
  • Get cover with membership. You can get cover as an add on to your membership dues to organisations such as the Australian Primary Health Care Nurses Association (APNA). This may be suitable to those not wanting to find cover from an outside party.

No matter which option you choose, be sure to review and compare your options. If you have any doubts, reach out to the insurer, an adviser, your employer or association and check that you’re making the right decision.

How much PI cover do you need as a nurse?

How much cover you need will depend on whether you’re taking cover out your own professional indemnity insurance or if you’re getting cover with your employer or association

If you are taking out cover yourself, you’ll need to ensure you’re getting cover that is both adequate and appropriate. Luckily, insurers that offer PII will have standard policies that comply with the standards required and they can also help tailor a policy to your needs if required.

Generally, getting cover from an adviser will mean a more tailored policy but you can expect a policy to cover around $10 million per claim, with most policies capping payments at a certain level.

To make sure you’re fully protected you should ensure the policy covers:

  • Claims made. This covers you against claims made while you’re practising.
  • Run-off. This protects your from claims after you’ve stopped practising.

What happens if you don’t have an appropriate level of cover?

If you don’t have the appropriate level of cover you’re not only putting your livelihood at risk should something go wrong but you also leave yourself vulnerable to having your application for registration or renewal refused by the NMBA.

How long do you need cover?

If you’re an enrolled nurses, midwives, nurse practitioner or a registered nurses you’ll need to have an appropriate and adequate level of cover as long practising. If you’re not practising but are register, you won’t need to have PII arrangements for that period.

However, once you do decide to stop practising, you’ll need to make sure you have an appropriate level of run-off cover, so that you’re protected from claims that arise from your actions at a later date.

Frequently asked questions about professional indemnity insurance

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Professional indemnity insurance offers essential coverage for a wide range of occupations, especially for nurses. With the unique and extensive range of risks nurses are exposed to, this type of cover offers the protection you need to ensure your financial strength and career survival if you are ever accused of breaching your professional duty.

Compare PI insurance for nurses

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8 Responses

  1. Default Gravatar
    NicoleMay 12, 2018

    I graduated recently with a Bachelor in Nursing from UNISA.
    To renew my registration with APHRA, a PII (Professional Indemnity Insurance) is required.
    1. Who can provide me with such an insurance?

    • Avatarfinder Customer Care
      JeniMay 12, 2018Staff

      Hi Nicole,

      Thank you for getting in touch with finder.

      PII arrangements may be provided:

      -through your private or public sector employer
      -as part of membership of a professional body, trade union or defence organisation
      -through a contract of insurance obtained by you directly from an insurer or through an insurance broker, or
      -through a combination of the above.

      For your further enquiries on PII, please check out this link.

      I hope this helps.

      Have a great day!


  2. Default Gravatar
    HelenMarch 23, 2017

    I am a registered nurse needing personal insurance.
    I have accepted a position as private nanny and need to be insured to work in home with some possible travel included.
    Please advise me on insurance to cover me at work either in clients home as well as accompanying them on travel

    • Avatarfinder Customer Care
      ZubairMarch 27, 2017Staff

      Hi Helen,

      Thank you for your question.

      You have contacted, a comparison and information service and not actually an insurer.

      Currently, the panel of insurance brokers that handles’s enquiries is not able to provide quotes for professional indemnity insurance for nurses as it is provided through their industry association.

      I hope this helps,

  3. Default Gravatar
    AmandaNovember 23, 2015

    Do these cover ‘workers compensation in accordance with the state/territory legislation’ as required by the Australian College of Mental Health Nurses?

    • Avatarfinder Customer Care
      RichardNovember 23, 2015Staff

      Hi Amanda,

      Thanks for your question. is a comparison service and none of the insurers in our panel handle enquiries provide quotes for professional indemnity insurance for nurses as it is provided through their industry association.

      I hope this was helpful,

  4. Default Gravatar
    PerminderAugust 31, 2015

    Do I need Professional indemnity insurance before registration with AHPRA.

    • Avatarfinder Customer Care
      RichardAugust 31, 2015Staff

      Hi Perminder,

      Thanks for your question. is a comparison service and not an insurer. You would need to check these requirements with AHPRA. You may find the Nursing and Midwifery Board of Australia (NMBA) Guidelines for registration standards useful.

      I hope this was helpful,

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