If you’re working as an independent NDIS support worker, you’ve probably discovered an uncomfortable truth: as a sole trader, you don’t have access to workers’ compensation. If you’re injured and can’t work, you have no income safety net—unless you have personal accident insurance.
This guide explains everything sole trader support workers need to know about protecting their income, including what insurance you need, what it costs, and which providers offer the best coverage for NDIS workers in 2025.
Why Sole Traders Need Personal Accident Insurance
As an employee, workers’ compensation covers you if you’re injured on the job. But as a sole trader in most Australian states, you cannot purchase workers’ compensation for yourself. This means:
- If you’re injured during a home visit, you get nothing
- If you slip and break your wrist, you can’t work and earn nothing
- If you’re assaulted by a participant, you have no income protection
Personal Accident Insurance (PAI) fills this gap by replacing your income when you can’t work due to injury.
Did you know? Western Australia is the only state where sole traders can purchase workers’ compensation for themselves. In all other states, personal accident insurance is your only option.
Insurance Types Every Support Worker Needs
As a sole trader NDIS support worker, you typically need three core insurance policies:
| Insurance Type | What It Protects | Why You Need It |
|---|---|---|
| Personal Accident & Illness | Your income if you’re injured or ill | No workers’ comp = no safety net without this |
| Public Liability | Third parties (clients) if they’re injured | Required by most NDIS participants and agencies |
| Professional Indemnity | Claims of negligence or professional errors | Often mandatory for NDIS registration |
1. Personal Accident & Illness Insurance (PAI)
This is your income protection. If you’re injured or ill and can’t work, PAI pays a percentage of your usual income.
What it covers:
- Weekly income replacement (typically 70-85% of your earnings)
- Lump-sum death or permanent disability benefit
- Medical expenses
- Non-accidental illness (with sickness rider)
What to look for:
| Feature | What It Means | Ideal Level |
|---|---|---|
| Income Percentage | How much of your weekly income you receive | 80-85% |
| Benefit Period | How long payments continue | 104 weeks |
| Waiting Period | Days before payments start | 14 days |
| Illness Rider | Covers sickness, not just accidents | Include this |
2. Public Liability Insurance
Protects you if a client or third party is injured or their property is damaged during your work.
Examples of claims:
- Participant trips over your bag and breaks their hip
- You accidentally damage a client’s wheelchair
- A visitor is injured at a client’s home during your visit
Typical coverage: $10-20 million per claim
Most NDIS participants and agencies require you to have public liability insurance before they’ll work with you.
3. Professional Indemnity Insurance
Covers claims that you provided negligent advice or made a professional error.
Examples of claims:
- Participant alleges you gave incorrect medication guidance
- Family claims you didn’t follow the care plan
- Allegation of breach of confidentiality
Typical coverage: $2-5 million per claim
Personal Accident vs Public Liability: Understanding the Difference
These are often confused, but they protect completely different things:
| Aspect | Personal Accident | Public Liability |
|---|---|---|
| Who’s protected | YOU (your income, your body) | Third parties (clients, visitors) |
| Trigger | You’re injured and can’t work | Someone claims against you |
| Typical claim | You fall at a client’s home, break your leg | Client falls during transfer, sues you |
| Payout | Weekly income to you | Legal costs + damages to claimant |
You need both. They don’t overlap—they protect different things entirely.
What Insurance Costs in 2025
Here’s what sole trader support workers typically pay for insurance in 2025:
Cost Ranges by Insurance Type
| Insurance Type | Annual Premium Range | Main Cost Factors |
|---|---|---|
| Personal Accident (accident only) | $320-$770 | Age, income level, benefit period |
| Personal Accident + Illness | $420-$1,150 | Above + illness cover added |
| Public Liability ($10M) | $250-$700 | Services offered, claims history |
| Professional Indemnity ($2M) | $300-$950 | Risk level, coverage limits |
Total Annual Cost
For a typical 35-year-old support worker earning $80,000/year:
| Coverage Combination | Annual Cost |
|---|---|
| PAI + PL + PI (basic) | $1,100-$1,800 |
| PAI + Illness + PL + PI (recommended) | $1,200-$2,400 |
| Full coverage + vehicle | $1,700-$3,600 |
How to Reduce Your Premiums
- Bundle policies - Many providers offer 5-10% discount for combined PL + PI
- Pay annually - 5-7% discount compared to monthly payments
- Higher excess - Raising excess from $500 to $1,000 reduces premiums
- Claims-free history - No claims for 2-3 years can unlock discounts
- Use specialist brokers - NDIS-focused brokers know the best rates
Best Insurance Providers for NDIS Support Workers (2025)
Based on coverage options, pricing, and NDIS-specific features, here are the top providers:
BizCover
Best for: Quick online quotes, NDIS-specific bundles
| Coverage | Approx Annual Cost |
|---|---|
| PAI (accident + illness) | $420-$950 |
| Public Liability ($10M) | $250-$600 |
| Professional Indemnity ($2M) | $300-$800 |
Pros: Fast online process, instant certificates, disability support category Get a quote: bizcover.com.au → “Disability Support Worker”
AAMI Professional Care
Best for: Strong claims service, well-known brand
| Coverage | Approx Annual Cost |
|---|---|
| PAI (accident + illness) | $460-$1,050 |
| Public Liability ($10M) | $280-$650 |
| Professional Indemnity ($2M) | $340-$900 |
Pros: Good claims handling, optional sickness rider Get a quote: 1800 AAMI or online portal
Allianz Care Professional
Best for: Flexible coverage limits, legal partner network
| Coverage | Approx Annual Cost |
|---|---|
| PAI (accident + illness) | $500-$1,150 |
| Public Liability ($10M) | $300-$700 |
| Professional Indemnity ($2M) | $360-$950 |
Pros: Strong legal defence network, flexible limits Get a quote: allianz.com.au → Professional Care
BMS Group
Best for: Higher income replacement percentages
| Coverage | Approx Annual Cost |
|---|---|
| PAI (accident + illness) | $460-$1,020 |
| Public Liability ($10M) | $260-$620 |
| Professional Indemnity ($2M) | $330-$850 |
Pros: Up to 85% income replacement, competitive pricing Get a quote: Online or through BMS broker network
What NDIS Participants and Agencies Require
When you work with NDIS participants or agencies, they typically require evidence of insurance:
Common Requirements
| Insurance | Minimum Level Usually Required |
|---|---|
| Public Liability | $10 million (some require $20M) |
| Professional Indemnity | $2 million |
| Personal Accident | Not always required but strongly recommended |
| Vehicle Insurance | Required if transporting participants |
What You Need to Provide
- Certificate of Currency - A document proving your insurance is active
- Policy details - Coverage limits, policy number, expiry date
- Services covered - Confirmation the policy covers disability support work
Most insurers can issue a Certificate of Currency instantly after purchase—keep a digital copy on your phone for quick sharing.
Additional Insurance to Consider
Beyond the core three policies, you may need:
Vehicle Insurance (If You Transport Participants)
If you drive participants to appointments or activities, your personal car insurance probably doesn’t cover this business use.
What you need:
- Comprehensive cover noting business use
- Minimum $10 million third-party liability
- Cover for transporting passengers commercially
Cost: $500-$1,200/year additional
Income Protection Insurance
Different from Personal Accident—this covers any illness or injury (not just accidents) for longer periods.
Features:
- 75% of pre-injury income
- Can pay for 2+ years (some until retirement)
- Covers gradual illness, not just sudden injury
Cost: $600-$1,500/year
Best for: Support workers who want more comprehensive long-term protection.
How to Get Insurance: Step-by-Step
Step 1: Gather Your Information
Before getting quotes, have ready:
- ABN and business name
- Description of services (e.g., “personal care, community participation, NDIS support”)
- Estimated annual turnover
- Weekly income you want to protect
- Vehicle details (if transporting participants)
Step 2: Decide on Coverage Levels
Personal Accident:
- Income percentage: 80-85% recommended
- Benefit period: 104 weeks minimum
- Include illness rider: Yes
Public Liability:
- $10 million minimum
- $20 million if agency requires it
Professional Indemnity:
- $2 million baseline
- Higher if providing high-risk services
Step 3: Get Multiple Quotes
Use online aggregators or specialist brokers:
- BizCover (bizcover.com.au)
- Comparethemarket (comparethemarket.com.au)
- iSelect (iselect.com.au)
- Specialist NDIS brokers
Compare:
- Premium cost
- Excess amounts
- Waiting periods
- Exclusions
- Claims process
Step 4: Check the Fine Print
Before purchasing, verify:
- Home visits are covered (some policies only cover “office-based” work)
- Transport is covered (if you drive participants)
- Pre-existing conditions exclusions
- Claim notification requirements
Step 5: Purchase and Get Certificates
Once you’ve chosen:
- Pay the premium (annual is cheaper)
- Request Certificate of Currency for each policy
- Save digital copies accessible on your phone
- Note renewal dates in your calendar
Common Questions About Support Worker Insurance
Do I need insurance if I work through a platform like Mable or Hireup?
Yes. Most platforms require you to have your own insurance. While some provide limited coverage through the platform, you’re still responsible for your own protection—especially personal accident insurance.
Can I claim insurance as a tax deduction?
Yes. Insurance premiums for your business (including PAI, PL, and PI) are tax-deductible business expenses.
What if I’m only working part-time?
You still need coverage. Premiums will be lower because your income is lower, but the need for protection is the same.
What happens if I don’t have insurance and get injured?
Without personal accident insurance:
- You receive no income while you can’t work
- Medical bills come out of your pocket
- Recovery takes longer due to financial stress
Without public liability:
- If a participant sues you, you pay legal costs personally
- Any damages awarded come from your personal assets
- You could lose your home and savings
How long does it take to get a payout if I make a claim?
Personal Accident claims:
- Initial claim processing: 5-10 business days
- Waiting period: 14 days (typical)
- First payment: 3-4 weeks after injury
- Ongoing payments: Weekly or fortnightly
Public Liability claims:
- Acknowledgement: Within 48 hours
- Investigation: Can take weeks to months depending on complexity
- Settlement: Variable—simple claims may settle quickly, complex ones can take years
Can I change providers mid-year?
Yes, but check:
- Cancellation fees on your current policy
- Whether the new policy covers you immediately
- Any waiting periods for the new policy
- Whether you’ll get a refund on unused premium
Checklist: Insurance for Sole Trader Support Workers
Use this checklist to ensure you’re properly covered:
Essential Coverage
- Personal Accident Insurance (80%+ income, 104 weeks)
- Illness rider included
- Public Liability ($10M+)
- Professional Indemnity ($2M+)
- Certificate of Currency obtained for all policies
If You Transport Participants
- Vehicle insurance with business use noted
- Third-party liability on vehicle policy
Documentation
- Digital copies of all certificates on phone
- Renewal dates in calendar
- Policy documents saved and accessible
Regular Review
- Annual review of coverage levels
- Update income protection if earnings change
- Check new requirements from agencies/participants
Get the Right Protection
Working as an independent support worker is rewarding, but it comes with risks. Unlike employees, you don’t have automatic protections—you need to create your own safety net.
The good news? For around $100-200 per month, you can have comprehensive protection that covers:
- Your income if you’re injured
- Legal costs if you’re sued
- Peace of mind that one accident won’t wipe you out financially
Don’t wait until something goes wrong. Get quotes today and make sure you’re protected.
Working With MD Home Care
If you’re a support worker looking for opportunities with proper backing and support, MD Home Care offers:
- Guidance on insurance requirements - We can explain what coverage you need
- Flexible work arrangements - Work independently or as part of our team
- Quality participant connections - Connect with participants who need your skills
- Professional development - Training and support to grow your career
Contact us to learn about opportunities with MD Home Care, or to discuss your support worker career.
This guide provides general information about insurance for sole trader support workers in Australia as of 2025. Insurance requirements and pricing change—always get current quotes and professional advice for your specific situation.
