Professional Indemnity Insurance (PI Insurance)
PROFESSIONAL INDEMNITY INSURANCE (PI Insurance)
For MSD Use Only – All Benefit Enquiries Must Be Referred to Member Admin
Purpose
This article explains what the HSU professional indemnity (PI) insurance is, and how our coverage works. You can find key information regarding eligibility rules and the process for referrals in this document, along with advice on how to manage an industrial matter that overlaps with a professional indemnity claim.
All enquiries about:
What is covered
How to claim
Claim form requirements
Policy limits
Timeframes
Exclusions
Must be referred to Member Admin or members can be directed to the PI section in the member portal.
Identifying if the matter is a PI issue
Providing general, non-technical guidance
Supporting the member with any industrial components (e.g., employer discipline, workplace conflict)
MSD may assist the member with:
a) Confirming if the matter appears to fall under PI insurance
b) Identifying any industrial implications, such as:
Performance management
Disciplinary action
Bullying or unreasonable management action
Rostering or workload contributing to the incident
c) Supporting the member with workplace processes (not the PI claim)
Example:
A Radiation therapist makes a clinical error → employer starts an investigation.
MSD handles the industrial investigation, not the PI claim.
If the member then receives a Health Care Complaints Commission (HCCC) this will be covered as a PI claim.
MSD must never:
Advise members on whether their situation is covered
Discuss policy interpretation
Help complete claim forms
Contact insurers
Review medical/legal documents for the purpose of insurance
Provide commentary on liability
If the member asks specific questions about what is or isn’t covered → refer to Member Admin.
If the member has already received a complaint always encourage the member to make a claim and the insurer will assess coverage.
1. What is Professional Indemnity Insurance?
Professional Indemnity Insurance provides protection for members where:
They are accused of breach of duty,
The employer is not able or not required to indemnify them,
Or the employer’s insurance does not cover them.
This is not industrial or disciplinary support — it is an insurance claim process managed by HSU’s insurers.
2. Basic Eligibility
As a minimum, a member is eligible if they:
Are financial
Are performing work within the scope of their usual occupation
Were financial at the time the incident occurred
Retired members may still be eligible if the incident occurred while they were financial members.
3. Main Exclusions
If you believe a member may be excluded from our PI coverage, please make a referral to member admin. Do not provide advice on eligibility.
For MSO reference only, PI insurance does not cover:
Criminal or dishonest conduct
Fines or penalties
Pre-existing or known circumstances before joining
Work performed outside HSU coverage
Some professions such as:
Dentists / oral surgeons / dental specialists
Interns
Medical officers
(These members must rely on their own professional associations)
4. What the Policy Covers
The policy can cover:
A. Breach of professional duty
For example:
Medication errors
Documentation mistakes
Clinical decision-making issues
Allegations of negligence by a patient or client
B. When an employer does not indemnify the member
This includes:
Employer insolvency
Employer refusing support
Employer insurance not covering the role
C. Private work
If:
Income earned is under $80,000/year
Work is similar in nature to the member’s usual employment
D. Limit of Liability
$20 million per claim
$80 million aggregate per year
$1 million for employment practices breaches
5. Key phrases that indicate a Member Admin referral is necessary
Refer immediately if the member asks questions such as:
“Am I covered for this?”
“Is this incident eligible for a claim?”
“What documents do I need to submit?”
“What are the policy limits?”
“How long will the claim take?”
“Can you help me fill out the form?”
“What do I do if my employer won’t indemnify me?”
“I want to lodge a PI claim.”
Use the following script:
“Professional Indemnity Insurance is handled by our Member Admin team.
I’ll transfer you now so they can give you the most accurate information.”
6. When MSD Does Stay Involved
MSD continues involvement if there is a workplace/industrial issue linked to the incident, such as:
Performance management
Show-cause letters
Disciplinary investigations
Bullying following an error
A clinical incident being used to target a member
WHS or staffing issues contributing to the incident
Employer not following workplace consultation requirements
MSD assists with:
Representation in meetings
Reviewing employer correspondence
Providing award/agreement-based advice
Ensuring procedural fairness
Identifying any breaches by the employer
The insurance claim
Claim-related paperwork
Communication with insurers
9. Logging Requirements
Every PI-related interaction must include:
“Professional Indemnity Insurance enquiry – referred to Member Admin”
Brief description of the incident (industrial context only)
Whether any industrial issues are present
Whether a case was created (if required)
Clear separation between:
Insurance issue → Member Admin
Industrial issue → MSD
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