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What is Management Liability Insurance for NDIS businesses?
Management Liability Insurance is designed to protect NDIS companies from legal action arising from the improper or careless actions of a company director or officer. It protects directors, owners, and the company itself — which is crucial in the NDIS context where regulatory compliance and staff management are complex and highly scrutinised.
Common NDIS risks for owners and directors
Employment Disputes
Unfair dismissal claims, discrimination, sexual harassment and workplace bullying by current or former employees.
Regulatory Fines
Penalties from the NDIS Commission, WorkSafe, or the Office of the Australian Information Commissioner for unintentional breaches.
Employee Fraud
Direct financial loss from fraudulent or dishonest acts by employees — theft of money, misappropriation of assets, or falsification of NDIS billing records.
Real-world example: You terminate an employee's contract due to performance issues. The employee alleges unfair dismissal and lodges a claim with the Fair Work Commission. Your legal defence costs alone could run into tens of thousands of dollars before any compensation is awarded.
What does NDIS Management Liability Insurance cover?
Directors and Officers (D&O) Insurance
Protects the personal assets of directors and officers if they are personally sued for alleged wrongful acts in managing the company — including breaches of duty, neglect, error or omission.
Employment Practices Liability
Covers claims made by employees regarding unfair dismissal, discrimination, sexual harassment and workplace bullying.
Statutory Liability
Covers the costs of defending investigations and paying fines or penalties imposed by regulatory bodies — such as the NDIS Commission, WorkSafe, or the Privacy Commissioner — provided the breach was unintentional.
Crime and Employee Fraud Cover
Protects the company against direct financial loss from fraudulent or dishonest acts committed by employees.
How much does Management Liability Insurance cost?
As a general guide for small NDIS providers: 1–5 employees: $1,000–$2,500+ per year; 6–20 employees: $2,500–$5,000+ per year. The best way to get an accurate figure is to request a tailored quote.
Management Liability vs Professional Indemnity and Public Liability
Management Liability does not replace Professional Indemnity or Public Liability insurance — each covers a distinct area of risk. Most NDIS providers should hold all three types of cover to be comprehensively protected. Management Liability is not required for NDIS registration, but is strongly recommended for any business with employees or a corporate structure.
Want to speak to an agent?
Call 02 8287 6576 to speak to an agent and find out what cover is right for your NDIS business.
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Have your ABN handy. Takes less than 5 minutes.
Disclaimer: MyCareSpace does not offer insurance advice. There is no one-size-fits-all for insurance and your insurance agent will be able to ensure you have the correct cover.
MyCareSpace is a referral partner of BizCover Pty Ltd (ABN 68 127 707 975; AFSL No 501769). MyCareSpace earns a commission from BizCover when you purchase a policy through their website. Any advice provided is general advice only. Please read the relevant PDS before making a decision. For more information, read BizCover's Financial Services Guide.
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