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The end of the financial year is a smart time for medical practices to pause and take stock of finances, staffing, and their often-overlooked insurance cover. Practices evolve constantly, and even small changes can create unexpected risk if your insurance hasn’t kept pace.
A proactive review now can help uncover hidden gaps and ensure your cover is fit for purpose heading into the 2026-27 financial year. Here are seven practical steps to help protect your medical practice with confidence.
1. Document what’s changed in your practice
Practices rarely stay static for long, and medical practice insurance should reflect this. Over the past year, you may have:
· Added new practitioners or specialists
· Expanded services or introduced new treatment offerings
· Taken on additional staff or contractors
· Invested in new equipment or technology
· Moved premises or upgraded fit-outs
Each of these changes can affect your risk profile and insurance cover needs. Start by clearly documenting what’s changed. This gives you and your advisor a solid foundation to review whether your current cover still aligns with how your medical practice operates today.
2. Review your existing policies carefully
Most medical practices and medical professionals hold core policies such as:
· Medical indemnity insurance
· Practice indemnity insurance
· Public liability insurance
· Business property and contents insurance
· Business interruption insurance
· Workers’ compensation
· Management liability insurance
· Cyber insurance
But when was the last time you reviewed the detail of your insurance cover? EOFY is the ideal opportunity to revisit policy limits, policy wording, exclusions and coverage definitions. For example, are your coverage limits still appropriate for your practice size, activities and services offered? Is expensive medical equipment adequately insured at current replacement value? Is your business entity protected against malpractice claims?
It’s also worth checking renewal dates and setting reminders. Lapses in cover can expose your practice to unnecessary risk.
3. Don’t overlook cyber and data risk
Medical practices are the second most targeted industry for cyber ‘threat actors’ due to the high value data they hold on their patients. Even small or regional practices are not immune, and the operational and reputational cost of a breach can be significant, not to mention legal fees or legal defence costs.
If your practice relies on practice management software, stores patient records digitally or uses online booking and billing systems, cyber insurance is well worth reviewing. According to the Australian Cyber Security Centre, the average cost per cyber-crime report is now $49,600 – a figure that can quickly escalate when business interruption and recovery costs are factored in.
4. Understand the importance of medical indemnity insurance
Professional Indemnity Insurance is a critical consideration for healthcare practices and is mandatory for most medical professionals in Australia. In fact, appropriate professional indemnity cover is a requirement for registration with the Australian Health Practitioner Regulation Agency (AHPRA).
Beyond compliance for individual practitioners, Practice Indemnity insurance now plays a vital role in protecting practices against legal claims and compensation costs arising from allegations of professional negligence or malpractice. Premiums can vary significantly depending on the specialty of the practice, with practice indemnity insurance in Australia typically costing between $2,000 and $12,000 per year – making it all the more important to ensure your cover is both adequate and fit for purpose as EOFY approaches.
5. Be prepared for liability claims
Medical malpractice refers to legal action taken when a healthcare professional is found to have deviated from accepted medical standards, resulting in patient injury – including issues such as misdiagnosis or improper treatment. These risks are becoming increasingly visible across the sector, with the Australian medical insurance market expanding by more than 7 per cent over the past year, reflecting the growing importance of indemnity and liability cover for medical practices.
This trend is reinforced by the fact that, this year we have seen a 19 per cent increase of medical practitioners in Australia experiencing a liability claim, highlighting just how prevalent legal and professional risk can be in the medical field. All the more reason to check you are adequately covered before 30 June.
6. Assess value, not just price
Rising operating costs mean many practice owners are understandably scrutinising expenses. When insurance policies come up for renewal, take the time to compare providers and coverage.
A lower premium on your medical equipment or other insurance policy may look appealing, but it can also mask reduced cover, higher excesses or broader exclusions. Shopping around with a clear understanding of your risks can often highlight gaps, overlaps or opportunities to tailor your insurance more effectively to your practice.
7. Seek advice from someone who understands healthcare
Insurance for medical practices can be complex, particularly where professional risk, regulatory obligations and patient safety intersect. Working with an advisor who understands your medical practice can make all the difference.
An experienced advisor can review your current cover, identify uninsured or underinsured risks and negotiate competitive premiums, saving you time while giving you confidence that nothing critical has been overlooked.
Make sure your cover is fit for the year ahead
Taking the time to review your insurance before EOFY can help protect what you’ve built and provide peace of mind as you head into the new financial year.
If you’d like support reviewing your current insurance policies or identifying potential gaps in your cover, get in touch with us today. We’ll help ensure your medical practice is properly protected so you can stay focused on caring for your patients.
Andrew is the Director of Cutcher & Neale’s General Insurance division. He has been an advisor in the industry for over 20 years ensuring his clients have the best value and personalised coverage possible.
Andrew has worked in many areas of insurance, including domestic and international brokering. His specialties cover personal and business insurance, medical professionals, residential and commercial real estate, sports, and construction.
