Cutcher | Insights and News

From locum shifts to running your own practice: When your cover needs an upgrade

Written by Andrew Harrison, Director, General Insurance | 10 November 2025 9:52:45 PM

Your medical career doesn’t stand still, and neither should your insurance. The cover that once suited you as a locum or hospital employee may no longer protect you once you’re running your own rooms, employing staff, or managing growing assets. As your income, responsibilities and exposure increase, your insurance needs to evolve too. 

Career stages and what cover to consider 

Early career – locum or hospital employee 

At this stage, your main protection comes from Medical Indemnity Insurance and the hospital’s own cover. However, if you’re taking on locum shifts, you’ll need to ensure you have your own indemnity in place for any work done outside the hospital system. It’s also worth reviewing Income Protection and Life and Total Permanent Disability (TPD) insurance as these safeguard your ability to earn if illness or injury strikes. 

Transitioning to private practice 

Moving into private practice introduces new risks and opportunities. You’re now responsible not just for your own work, but for the financial and operational wellbeing of your practice. Alongside personal cover, you’ll need to consider Business Insurance and Practice Indemnity Insurance. 

A well-structured business insurance package can combine: 

  • Property Damage: protection for your rooms, contents and equipment. 
  • Business Interruption: to cover lost revenue if you’re unable to trade due to events like fire or storm damage. 
  • Public Liability: essential if someone is injured or suffers financial loss because of your business activities. 
  • Electronic Equipment and Machinery Breakdown: to safeguard the high-value technology your practice depends on. 

And don’t assume your personal medical indemnity automatically covers the practice entity or staff… it often doesn’t. A dedicated Practice Indemnity policy closes that gap. 

Established practice or growing group 

Once your business expands, your exposure widens again. Directors, officers and managers face increasing regulatory and employment-related risks. Management Liability Insurance provides protection against claims such as unfair dismissal, harassment, or breaches of workplace health and safety obligations. 

Meanwhile, the rise in cyber threats means Cyber Insurance has become non-negotiable. Medical practices are prime targets for data breaches, ransomware and extortion attempts due to the sensitive patient information they hold. Cyber insurance can cover privacy breaches, business interruption, and the significant forensic and legal costs of managing an incident. 

Common gaps to watch for 

Many practitioners discover their cover is outdated only when they need to claim and by then, it’s too late. Common gaps include assuming your personal indemnity extends to practice operations, overlooking management or cyber liability, or underinsuring business assets and revenue. Regular reviews ensure your protection keeps pace with your professional growth. 

Your insurance should grow with you. From your first locum shift to becoming a practice owner, each career stage brings new risks and responsibilities. Working with a licensed advisor who provides personal advice ensures your cover reflects your specific circumstances and goals. 

At Cutcher & Neale, our Insurance Advisors help medical professionals and practice owners tailor their protection to match every stage of their journey. Contact us today and claim your complimentary consultation by calling 1800 988 522 or going to www.cutcher.com.au/contact