The Aged Care Act 2024
Written by Declan Punch - Trainee Underwriter - Casualty
What It Means for Your Liability & Professional Indemnity Cover
Australia’s aged care reforms are reshaping responsibility across the sector. For Registered Providers, the introduction of the term “Associated Provider” significantly expands exposure — particularly under Professional Indemnity (PI) / Medical Malpractice and Public Liability policies.
If third parties deliver care on your behalf, you may now be directly accountable for their acts, omissions, and compliance failures.
Professional Indemnity / Medical Malpractice
Under the new framework, Registered Providers can face increased vicarious liability for subcontracted clinicians, agency staff and outsourced service providers.
Key insurance considerations:
Does your policy extend to wrongful acts of Associated Providers?
Are outsourced clinical services captured within the definition of “Professional Services”?
Are your limits adequate for increased claim frequency and severity?
Does the policy respond to regulatory investigations and defence costs?
Without clear wording, gaps can emerge at the point of claim.
Public Liability
Operational responsibility now extends beyond your direct workforce. If an Associated Provider causes bodily injury or property damage, the Registered Provider may be pursued.
Review your program to ensure:
Full operational scope is declared
Contractual liability exposures are considered
Aggregates are sufficient for multi-provider risk
Outsourced service delivery is not excluded
Should Associated Providers Be Named Insureds?
While adding them to your policy may seem like a solution, it can:
Increase claims against shared limits
Raise premiums and deductibles
Remove insurer rights of recovery (subrogation)
Often, a stronger structure involves maintaining robust contractual risk transfer and ensuring Associated Providers carry their own insurance — supported by clear vicarious liability protection under your policy.
The Bottom Line
The Aged Care Act 2024 materially shifts how liability attaches to Registered Providers. Now is the time to reassess your Professional Indemnity and Public Liability program to ensure it aligns with your expanded responsibilities and risk profile.
Protect your organisation — so you can continue delivering quality care with confidence.
To discuss how these reforms impact your insurance structure and to formulate a tailored solution, please contact Fairlight Insurance.
Our team can review your current program and ensure your coverage responds to the evolving aged care landscape.
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Aged Care and NDIS
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p. 1300 902 210