APS Professional indemnity insurance

Important notice! 

2016-17 Aon PII Renewals

Aon Risk Solutions is the APS approved broker for professional indemnity insurance (PII) which combines malpractice, public and products liability under the one policy.

This cover satisfies the requirements of the Psychology Board of Australia (PsyBA).

Further, it provides extensive coverage to compensate for Inquiry Costs associated with complaints heard by the PsyBA (which currently forms approximately 90% of claims).

APS members are offered Aon’s PII policy at a considerably reduced premium.

2016 -17 Professional Indemnity insurance cover

To find out more about this cover, you can call the Aon team on 1800 805 191. Alternatively you can visit Aon’s website:

Requests for client documentation

These podcasts have been put together by the APS, CGU and Aon for your benefit and assistance when facing a request for client documents. Staff from CGU will take you through a number of different situations involving requests for documentation.

Aon reappointed as APS-approved insurance provider

Aon Risk Solutions, whose insurance program is currently underwritten by Insurance Australia Limited trading as CGU Insurance, was reappointed in April 2014 as the APS-approved broker for professional indemnity insurance following a comprehensive tender process. The APS invited proposals from seven insurance brokers/companies and a panel, which included member representatives, undertook the selection process. The key criteria in the selection process included: the quality of the insurance product – extent of cover and price; knowledge and experience of psychology and insurance; level of service delivery; and working relationship with the APS.

Aon insures over 45,000 individual health practitioners in Australia, including psychologists, physiotherapists, occupational therapists, podiatrists, massage therapists, radiographers, optometrists, chiropractors, and osteopaths. For an extended period Aon has provided strong service to APS members around professional indemnity insurance, enhancing and improving the product offered on a regular basis. Some key enhancements over recent years have been:

  • The extension of the amount of time provided to callers to the legal hotline, available free of charge to those insured through Aon, from 15 minutes to 2 hours per annum
  • Run off cover for psychologists moving from private practice to public sector employment to cover past work
  • Consolidation of cover for allegations of sexual misconduct
  • Free cover for psychologists on parental leave.

Due to its lengthy experience as the approved APS insurance broker, Aon has a solid appreciation of the type of claims that arise in the field of psychology. Over the last 12 months the Aon services team has responded to over 10,000 calls from psychologists.

As a result of undertaking the comprehensive tender process, the APS believes that Aon offers a high quality professional indemnity insurance product, providing APS members with peace of mind about the level and nature of their cover when purchasing the approved insurance product.

Professional Indemnity insurance: background

Obtaining professional indemnity insurance is an important way of managing your professional risks.

As a key member benefit, the Australian Psychological Society (APS) offers in excess of 15 years’ experience in negotiating with various insurance brokers to develop a professional indemnity insurance product suited to the professional risks of their members.

When selecting a preferred provider we have considered selection criteria related to the following areas:

  • Insurance product - extent of insurance coverage, premium level;
  • Working relationship - capacity of the insurance company to work collaboratively with the APS towards better risk management practices by psychologists, and advocate for members where necessary;
  • Knowledge and experience - depth of understanding of the psychology field, and related professional indemnity insurance matters;
  • Service delivery - staffing levels to process high volumes of applications, and ability to deal effectively with enquiries;

The current insurance broker endorsed by the APS is Aon Risk Solutions which administers a professional indemnity insurance policy underwritten by CGU Insurance.

Aon – Free Postgraduate Student and Registrar Malpractice Insurance

Aon, our approved insurance partner, offer FREE combined malpractice insurance for Psychology Postgraduate students and Registrars which includes Professional indemnity, Public liability and Product liability. Then, once a practising psychologist or having completed the Registrar program, should you choose to take out Aon’s APS-approved professional indemnity package you’ll be offered 14 months cover for the price of 12

Key aspects of any policy you may consider when taking out professional indemnity insurance are:

Level of cover for Inquiry Costs

  • The most common type of insurance claim for a Psychologist is a hearing at the Psychology Board of Australia. For insurers, these costs are referred to as Inquiry Costs.
  • The Aon policy now offers you Inquiry Costs cover equal to the limit of your selected professional indemnity amount. This means that if you have selected $5 million Professional Indemnity cover, your Inquiry Costs cover will also be $5 million.
  • Many other professional indemnity insurance policies may have significantly lower limits.

Limit of Indemnity

  • The Limit of Indemnity of your policy ($2 million, $5 million, $10 million, or $20 million) generally refers to costs incurred when someone sues you for damages, which occurs in the civil courts.

Legal advice relating to your psychological work

  • For those insured with the Aon policy there is a free legal advice hotline which is staffed by leading law firms across Australia.  View list of law firms

Run-off cover - if you close your private practice or leave the profession will you still be covered for claims made in the future?

The Aon policy offers free run-off cover which means that if you have either retired from the profession or moved into the public sector you will be covered for any claims made against you as a result of past actions.

Here’s an example for you:

Six months ago Mr Smith retired from his private practice offering psychological services. Last week Mr Smith was surprised to find out that a patient from his private practice had made a claim against him. As Mr Smith’s Aon insurance policy includes run-off cover, he is still covered for the claim.


So, if you are about to retire, cease working as a psychologist, or move into the public sector, and you wish to retain professional indemnity insurance cover, all you need to do is notify Aon of your changed circumstances, and you will be placed on the run-off cover list. You will not have to pay any further insurance premiums, but are reminded that if you recommence work as a psychologist, you will need to take out a new policy.

If you would like to learn more about what professional indemnity covers visit the professional indemnity insurance page on Aon’s website.

Contact Aon

Ph: 1800 805 191
Email: au.psychology@aon.com

Sam Small HQ

Sam Small HQ

Sam Small HQ is a new portal on the Aon website that provides advice, information and resources to help members make more informed decisions around their insurance purchasing.


To find out more, visit aon.com.au/samsmall