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What does professional indemnity insurance cover for nurses and midwives in Australia?

·8 min read

Professional indemnity insurance (PII) arrangements secure cover for a nurse’s or midwife’s professional practice against civil liability incurred, or loss arising from a claim made because of a negligent act, error or omission. Under the National Law, nurses and midwives must not practise the profession in which they are registered unless they hold appropriate PII arrangements for that practice. The Nursing and Midwifery Board of Australia (NMBA) registration standard, updated 11 August 2026, says the exemption for privately practising midwives providing intrapartum care outside a hospital will end on 31 December 2026; from 1 January 2027, they will need insurance for all aspects of their practice, including homebirth intrapartum care (figures checked 1 October 2026).

What does PII cover in professional practice?

The NMBA describes PII in terms of the conduct, claim and resulting financial exposure:

ElementNMBA description
Who is coveredA nurse or midwife carrying out professional practice
Conduct involvedA negligent act, error or omission
Claim involvedA claim made because of that conduct
Loss addressedCivil liability incurred, or loss arising from the claim

This is the regulatory description of the risk PII arrangements address. It does not mean every professional dispute or loss is covered by every policy. The policy’s Product Disclosure Statement (PDS) sets out its specific definitions, scope, exclusions, limits and conditions.

Must every nurse and midwife have PII?

Under the National Law, a nurse or midwife must not practise their registered profession unless they hold appropriate PII arrangements relating to that practice.

Before relying on a policy, check that:

The registration requirement does not, by itself, identify a particular policy or provider. Those product choices need to be assessed against the PDS and the practitioner’s circumstances.

What changes for privately practising midwives providing homebirth care?

The NMBA material identifies a specific exemption for privately practising midwives providing intrapartum care outside a hospital setting. This is a limited exemption connected with homebirth care, not a blanket exemption from the broader requirement to hold appropriate PII arrangements.

DateRequirement set by the NMBA
31 December 2026The PII exemption for privately practising midwives providing intrapartum care outside a hospital will end.
1 January 2027All privately practising midwives must hold insurance for every aspect of their practice, including intrapartum care during a homebirth.

A privately practising midwife who provides this care should check the current regulator page and their policy PDS well before the change takes effect.

Is there a fixed dollar minimum for PII?

The NMBA registration material does not state a dollar minimum. It requires appropriate PII arrangements relating to the professional practice, while the individual policy’s PDS determines the actual terms.

It would therefore be unsafe to assume a particular sum from the word “appropriate”. Check the policy limit and scope, then assess whether the policy responds to the professional activity being performed.

How should I check that the cover is suitable?

Use this practical sequence:

  1. Identify the practice: Record the nursing or midwifery services being provided.
  2. Check the PDS: Confirm the covered professional practice, relevant exclusions, limits and conditions.
  3. Review the claim trigger: Check how the policy describes negligent acts, errors and omissions and loss arising from a claim.
  4. Consider homebirth work: If applicable, confirm arrangements for the requirements applying from 1 January 2027.
  5. Check current regulatory information: Use the NMBA page rather than relying only on a historical summary or third-party explanation.

The NMBA also provides a supporting PII fact sheet, listed as having a date of effect of March 2026. It supplements the registration standard with further information about the NMBA’s expectations and requirements.

This is general information, not financial or legal advice. Check the current regulator page and your policy’s PDS before relying on a policy or making a decision.

Sources

FAQ

Does PII cover every loss connected with nursing or midwifery work?

No assumption should be made that every loss is covered. The NMBA’s description focuses on civil liability incurred, or loss arising from a claim resulting from a negligent act, error or omission in professional conduct. The policy PDS determines how that protection applies in practice.

Will privately practising midwives need insurance for homebirth intrapartum care?

Yes. From 1 January 2027, all privately practising midwives must hold insurance for all aspects of their practice, including intrapartum care during a homebirth. The relevant exemption will end on 31 December 2026.

Does the NMBA registration standard set a dollar minimum?

No dollar minimum is stated in the NMBA registration material. It requires appropriate PII arrangements relating to the professional practice. Check the individual PDS for the policy limit, scope and exclusions.

Where should a nurse or midwife check the current requirements?

Start with the NMBA registration standard and supporting materials, then check the policy PDS. The regulator page explains the registration requirement, while the PDS explains the cover offered by the particular policy.

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