Key Insurance Considerations for Telehealth Providers

Telehealth has reshaped how healthcare services are delivered across Australia. For doctors, specialists and allied health practitioners, virtual consultations offer flexibility, broader reach and reduced overheads. For some, telehealth is an extension of an existing clinic. For others, it's the foundation of a new startup model.

But while the delivery method may change, the professional and business risks do not disappear, they evolve. Insurance and compliance arrangements need to evolve with them. Importantly, "telehealth insurance" is not a standalone product. Instead, telehealth affects your risk profile and how your existing covers respond.

Medical Malpractice & Professional Indemnity

For medical practitioners, telehealth services typically fall under Medical Malpractice cover. For allied health professionals, it is generally covered under Professional Indemnity (PI).

However, there are critical considerations:

Some insurers limit cover if telehealth exceeds a certain percentage of total billings.
100% online practices may require specific underwriting approval.
Certain professions require at least one in-person consultation within a defined timeframe.
Cross-border consultations may trigger additional regulatory and registration requirements.

If telehealth becomes a material part of your services, it should be disclosed to your insurer. A significant change in service delivery that isn't notified can affect how a claim is assessed.

Starting a Telehealth Practice: What's Different?

If you're launching a telehealth startup, your insurance structure needs to reflect that you are operating a business even if you have no physical clinic.

You may need to consider:

Medical Malpractice or Professional Indemnity
Public Liability (particularly if patients occasionally attend in person)
Cyber Liability
Business equipment cover
Management Liability (if operating through a company)

Startups often underestimate how underwriting appetite differs for fully virtual models. Some insurers are cautious about high-volume or 100% telehealth operations and may apply higher excesses or request detailed governance information.

Getting advice before launch is far easier than trying to correct gaps after you begin trading.

Operating from Home: A Common Oversight

Many telehealth practitioners work from home. This creates a frequently overlooked exposure. Standard home and contents policies often exclude business activities or business equipment unless disclosed.

If you are running a business from home and:

A fire damages your computer and medical equipment
Business assets are stolen
Your insurer discovers undisclosed commercial activity

Your home policy may not respond.

In addition, business interruption cover is rarely included under standard domestic policies. If your income depends entirely on your technology and workspace, this is a significant risk.

Disclosing home-based business activity and arranging appropriate cover is critical.

Supervision & Clinical Governance

Telehealth does not reduce professional obligations. In some cases, it increases scrutiny.

Consider:

How supervision of junior clinicians is documented
Whether contractors are covered under your policy
How consent is obtained and recorded
How you monitor compliance with any in-person review requirements

Medical Malpractice and PI policies assume appropriate governance. Weak systems can complicate claim defence.

Cyber & Privacy Risks

Telehealth relies on digital platforms, patient portals and electronic records. This increases exposure to:

Data breaches
Ransomware
Privacy Complaints
Accidental disclosure of sensitive health information
Platform outages

Medical Malpractice and PI policies do not automatically cover cyber events. A separate Cyber Liability policy may be appropriate, particularly given the sensitivity of health data and obligations under Australian privacy law.

Why Specialist Advice Matters

Healthcare insurance is not one-size-fits-all, particularly when telehealth is involved.

Policy wordings vary significantly between insurers. Some may:

Restrict high-percentage telehealth activity
Exclude certain remote treatment types
Require disclosure of home-based operations
Limit cyber or privacy extensions
Apply different underwriting standards to startups

A generalist insurance approach can overlook these nuances.

Whether you are expanding into telehealth or launching a virtual practice, your insurance arrangements should reflect how you actually operate, not how you used to.

Speaking with a specialist healthcare insurance broker helps ensure your cover is reliable, defensible and aligned with your professional obligations.

How Coverforce can help

For more information or to arrange great value cover for your business click here to request a call from an experienced Coverforce broker

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