Professional Indemnity Insurance


Registered Music Therapists working in Australia should ensure that they are covered by professional indemnity insurance. 

Professional indemnity insurance is an insurance that protects businesses from legal action taken against them if someone suffers a loss after following that business’s professional advice or as a result of receiving their service (www.understandinsurance.com.au/types-of-insurance/business-insurance, May 2019).

The Australian Music Therapy Association Inc. does not provide this cover as part of registration with the association.

Appropriate levels of cover may require one or more arrangements to provide professional indemnity insurance for Registered Music Therapist’s. Some considerations in relation to this insurance may include:

  • Areas of practice

  • Locations of practice

  • Work environments including: private practice, non-government and/or public sector

  • Modes of practice, including any combination of full-time, part-time, self-employed, or employed.

Professional indemnity insurance cover may be:

  • Provided within the insurance of the employing institution

  • Included as a benefit of union membership

  • Purchased as an individual professional indemnity insurance policy.

The Insurance Council of Australia advises that products vary between companies, and it is essential to always read Product Disclosure Statements (PDS) before purchasing cover. There is no one product that is appropriate for everyone and individual levels of risk need to be considered to ensure an appropriate product is chosen (https://www.insurancecouncil.com.au/for-consumers/types-of-insurance).

It is a recommendation of the Australian Music Therapy Association Inc. that Registered Music Therapists, who undertake any form of music therapy practice, review their professional indemnity insurance (PII) cover arrangements. 

Useful links:

https://www.insurancecouncil.com.au/for-consumers/types-of-insurance

https://www.business.gov.au/risk-management/insurance/liability-insurance-and-professional-indemnity

 

Approval: AMTA Inc. Board, May 2019. Last Reviewed: May 2019