What Insurance Do I Need for My Medical Practice?
Running a medical practice comes with unique responsibilities and unique risks. Whether you are a GP clinic, specialist practice, allied health practice, having the right insurance in place is essential for protecting your business, your patients, and your reputation.
In this guide, we break down the core insurance policies a medical practice needs, why they matter, how much cover is appropriate, and how a specialist broker like Morgan Insurance Brokers can help you get it right.
1. Medical Malpractice / Professional Indemnity Insurance
What Is Medical Malpractice Insurance?
Medical malpractice insurance often referred to as professional indemnity insurance protects your practice entity against claims of negligence, errors, or omissions arising from the treatment of patients.
Even if all your doctors, nurses, or contractors have their own individual indemnity cover, your practice can still be named in a lawsuit. This can occur when:
- An employee or contractor allegedly makes an error
- A patient believes the clinic contributed to or enabled negligent treatment
- The entity is accused of failing to supervise or maintain appropriate systems
In other words: even if practitioners hold their own PI insurance, your practice may still be dragged into the claim and you need protection.
How Much Cover Does a Medical Practice Need?
Your practice does not usually need the full $20 million limit that many GPs carry individually.
This is because the practice entity is rarely found solely liable for the full extent of damages. A more suitable level of cover for medical practices is typically:
- $1 million per claim
- $2 million per claim
- $5 million per claim
The right limit depends on:
- Size of the practice
- Number of practitioners
- Types of services provided
- Claims exposure
A specialist broker can help assess what is commercially sensible without overspending.
2. Business Package Insurance
A business package policy bundles multiple essential covers into one policy. What you need depends on whether you own the building or lease the premises.
If You Own the Building
You will generally need:
- Building insurance – covers structural damage from fire, storm, impact, vandalism etc.
- Property owner liability – protects you if someone is injured on the premises
You can also refer to our detailed guide:
Commercial Property Insurance for Medical Centres
If You Lease the Premises
You should consider:
- Contents insurance – furniture, fit-out, medical equipment
- Public liability insurance – injuries to visitors or patients
- Business interruption insurance – protects your income if your practice cannot operate after an insured event
- Glass insurance – often required under lease agreements
- Machinery breakdown – for essential equipment like air-conditioning and medical compressors
- Electronic breakdown – especially important for vaccine fridges, temperature-controlled medicines, and diagnostic equipment
A single equipment failure can lead to thousands of dollars in lost vaccines, this cover is often overlooked.
3. Cyber Insurance
Medical practices are high-value targets for cyber criminals due to the large amount of personal and sensitive health information stored.
A cyber attack can lead to:
- Loss of patient records
- Exposure of sensitive medical information
- Ransom demands
- Regulatory penalties
- Costly IT forensics and data recovery
- Mandatory patient notifications
- Business interruption
Cyber insurance helps cover these costs and ensures your practice can respond quickly and professionally after an incident.
Why Work With a Specialist Insurance Broker?
Insurance for medical practices is complex much more specialised than standard business insurance. At Morgan Insurance Brokers, we:
- Understand the healthcare industry and its unique risks
- Source multiple quotes from reputable insurers
- Recommend the right limits (not just what’s standard)
- Manage claims on your behalf to reduce stress and downtime
- Tailor cover to GPs, specialists, allied health, and multi-site clinics
You get expert advice, better pricing, and insurance that actually protects your business when something goes wrong.
Final Thoughts
Having the right insurance program gives you peace of mind and allows you to focus on what matters most—delivering high-quality patient care.
At minimum, most medical practices need:
- Medical malpractice / professional indemnity insurance (entity cover)
- Business package insurance tailored to whether you own or lease
- Cyber insurance to protect patient information
If you’d like a review of your existing policies or want to explore whether your clinic is properly protected, Morgan Insurance Brokers are here to help as specialists for medical centre insurance.
