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What Insurance Does A Locum Doctor Need?

What Insurance Does A Locum Doctor Need?

2025-01-24

So, you've decided you want to give locuming a go and are ready to apply for your first shift. Here's some important information on the insurances you need to know before you jump in.

In the fast-paced and unpredictable world of healthcare, independent doctors face risks beyond the operating room. From accidents in the hospital to complex medical decisions and even personal injuries outside of work, having the right insurance is essential to protect your career and peace of mind.

Here's why public liability insurance, medical indemnity insurance, and income protection insurance are non-negotiables for independent doctors—and how you can get covered, whether you work under an ABN or PAYG arrangement.

CoveragePublic LiabilityMedical IndemnityIncome Protection
Third-party injury claims
Third-party property damage
Medical negligence claims
Errors in clinical decisions
Personal injuries
Lost income due to injury/illness
Mandatory for doctors in Australia
Applies to work-related activities
Applies to non-work-related incidents

What Is Public Liability Insurance for Doctors?

Picture this: It's late at night in the hospital. A cleaner accidentally spills coffee on the floor. A patient slips, falls, and injures themselves. As an independent contractor, you could be held financially responsible for the incident.

Without public liability insurance, the costs of such claims could come directly out of your pocket. This type of coverage ensures you're protected from these unexpected financial burdens, allowing you to focus on what matters most—your patients.

How to Get Public Liability Insurance

Public liability insurance is available through many insurance providers specialising in medical professionals. When choosing a policy, ensure it covers your work as an independent contractor and any settings you practise in.

  • Start Here: Compare providers such as Avant Mutual, MedPro Group, BizCover, or Professional Indemnity Insurance Australia.
    • It's best to get covered up to $20 million as an independent contractor.
    • We recommend Avant.
    • Costs range from approximately $300-$500/year.
  • Tip: Look for policies tailored to locum doctors or contractors to avoid paying for unnecessary coverage.

Why Doctors Need Medical Indemnity Insurance?

Even the most skilled doctors can make mistakes. Imagine operating on a patient, only to realise you've removed the wrong kidney. Mistakes like this can lead to significant legal and financial repercussions.

Medical indemnity insurance is there to protect you from claims arising from clinical decisions. It offers financial and legal support, so you can continue practising without fear of losing everything over one misstep.

How to Get Medical Indemnity Insurance

In Australia, medical indemnity insurance is a legal requirement for practising doctors. Major providers offer tailored solutions for locum doctors, and some even include risk management resources.


What Is Income Protection Insurance and Why Is It Important for Doctors?

What if you're enjoying a weekend dive and a shark bites your arm? While rare, such incidents remind us that accidents can happen outside of work too.

Income protection insurance ensures that even if you're unable to practise due to illness or injury, you'll have a steady income to cover your living expenses. It's peace of mind that lets you recover without financial stress.

How to Get Income Protection Insurance

Income protection insurance is offered by a variety of insurers, but it's crucial to choose a policy tailored to healthcare professionals. Consider factors like waiting periods, benefit periods, and the percentage of income covered.

  • Start Here: Providers such as TAL Insurance, AIA Australia, and AMP offer competitive plans for doctors.
  • Some superannuation funds also offer income protection options.
  • Tip: Work with a financial adviser who understands the needs of medical professionals to find the best policy for your career stage.

What's The Difference Between Working With ABN vs PAYG

CategoryPAYG 🧾 (Employee)ABN 💼 (Independent Contractor)
Tax Handling✅ Taxes automatically deducted.❌ Responsible for managing and paying taxes, including GST.
Superannuation Contributions✅ Paid by the employer.❌ Must manage your own super contributions.
Medical Indemnity Insurance✅ Often covered for employer work.❌ Must arrange your own coverage.
Public Liability Insurance✅ Typically covered by the employer.❌ Must arrange your own coverage.
Income Protection Insurance❌ Not provided; optional to arrange.❌ Must arrange your own coverage.
Flexibility⏰ Limited by employer schedules.🌍 Greater control over schedules and locations.
Administrative Burden🏢 Low; employer handles admin.📂 High; manage invoicing, taxes, and compliance.
Earning Potential💵 Standardised pay with deductions.💰 Often higher contractor rates, but more responsibilities.
Compliance Requirements🛡️ Minimal; employer handles compliance.⚖️ High; must comply with ATO and professional obligations.

What Does It Mean to Work Under an ABN?

Working as a locum under an ABN means you are operating as an independent contractor, essentially running your own business. You're responsible for invoicing, paying your taxes, and managing superannuation contributions.

Key Points for ABN Locum Doctors:

  • Insurance: You are required to arrange your own:
    • Medical indemnity insurance
    • Public liability insurance
    • Income protection insurance
  • Taxes: You must set aside funds for GST and income tax.
    • Having a separate account for this is essential.
    • Use expensing apps such as Dext or Foreceipt to track your expenses while working.
  • Flexibility: You have more control over your working conditions, but also bear more administrative responsibility.
  • Superannuation: You need to manage your own super contributions.

What Does It Mean to Work Under PAYG?

Working under PAYG means you are employed by Medlo. We deduct your taxes and superannuation contributions directly from your pay.

Key Points for PAYG Locum Doctors:

  • Insurance: Medical indemnity insurance is often covered for duties within the scope of your employment, but you may need personal indemnity insurance for private practice or additional coverage for coronial inquiries. Public liability insurance is typically not your responsibility.
  • Taxes: Income tax is deducted automatically, reducing your administrative burden.
  • Simplicity: You don't have to manage invoicing or GST, making it a simpler option for many.
  • Superannuation: Contributions are made on your behalf.

Which Option Is Right for You?

  • If you value flexibility and higher earning potential, an ABN arrangement might suit you. However, you must be prepared for the extra responsibility of managing taxes and insurance.
  • If you prefer simplicity and less administrative overhead, working under PAYG could be more suitable.

How Medlo Supports Both ABN and PAYG Locum Doctors

At Medlo, we cater to both ABN and PAYG locum doctors. Whether you're looking for flexibility as an independent contractor or the simplicity of PAYG employment, we can connect you with opportunities that suit your lifestyle and career goals.


Takeaway

As an independent doctor, your work environment and responsibilities come with unique challenges. Having the right insurance coverage isn't just about compliance—it's about protecting yourself, your patients, and your livelihood.

At Medlo, we understand the complexities of working as a locum doctor. That's why we're here to help you navigate not just job opportunities, but the tools and protections you need to thrive in your career.

Need more help? Explore our resources or reach out to learn how Medlo supports locum doctors in Australia.

Ready to safeguard your future? Contact Us today to learn more about our tailored support for independent doctors.

Dr. Louis Sisk

Dr. Louis Sisk

ED Surgeon

Founder at Medlo