The National Disability Insurance Scheme (NDIS) workforce is already one of the largest sectors in Australia – and it may continue to grow due to increased demand. BizCover for Brokers explained how brokers can take advantage of this booming sector.
In June 2021, Australia had over 11,600 NDIS providers, employing more than 270,000 workers across 20 occupations, according to the NDIS National Workforce Plan. By 2024, the report expects that around 500,000 participants will require support from nearly 353,000 NDIS workers. However, as of March 2022, latest data already saw more than 518,000 participants.
BizCover for Brokers claimed that the number of NDIS workers needs to increase by 83,000 in three years to keep up with the sector's growth. Since NDIS service providers must have appropriate insurance arrangements, brokers can try breaking into this untouched market.
“NDIS service providers need bespoke insurance products that factor in their unique risk profiles,” says Jane Mason, head of product, channels, and risk at BizCover for Brokers. “Brokers could get in at the ground floor amid the boom within this critical sector and find a new avenue of customers to advocate for.”
Mason explained that NDIS providers must provide a certificate of currency for professional indemnity (PI) and public liability (PL) insurance when the obligatory NDIS Certification Audit occurs after registration. However, having separate PI and PL insurance policies might result in claim-related issues, for example, if an NDIS-registered occupational therapist that negligently provides their service to a client resulted in a body injury.
“The best way forward with allied health is a combined policy, and it's because there's an intrinsic crossover between the PI and PL exposure,” Mason said. “NDIS providers need policies that do more than just tick a box. Their exposure presents an opportunity for brokers to advocate on their behalf, so they are protected if a claim occurs.”
NDIS providers also require PA cover if they are a sole trader or not covered by workers' compensation insurance.
“Others may want a B&O pack, especially if they have their own premises or if they are exposed to business interruption or tax audit risk,” Mason said. “The door is open for brokers to take advantage of this surge in the NDIS sector. You now have suitable products and a business comparison platform that streamlines the broking process to help facilitate that relationship.”
The NDIS has been on the hot seat recently due to fraudsters targeting the scheme and NDIS participants facing financial crises due to funding cuts. Early this month, new NDIS minister Bill Shorten vowed to stop fraudsters from targeting the scheme and restore trust and see “all options on the table to make sure we protect taxpayer money.”
