APS Professional indemnity insurance

Important notice! 

2013-14 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 Australian Health Workforce Ministerial Council and The Psychology Board of Australia.

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

APS members are offered Aon’s PII policy at a considerably reduced premium - a benefit that saves them an amount greater than their annual APS subscription fee.

2013-14 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:

Legal hotline for insured members

APS-endorsed broker: Aon Risk Solutions

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.

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.

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