Guide to child services insurance requirements in Victoria

Providing services to children in Victoria comes with both legal responsibilities and a duty of care. Organisations, whether non-profit, private, clubs, or associations, need to understand their insurance obligations, particularly regarding child abuse and molestation cover.

This guide addresses statutory requirements, insurance solutions, minimum limits, and other questions regarding cover for these fundamental services.

Is child abuse and molestation cover a statutory requirement in Victoria?

Child abuse insurance is not strictly a statutory requirement under Victorian law. However, organisations that receive government funding to provide services to children (people under the age of 18) are required to hold insurance that covers child abuse and sexual misconduct risks¹.

For organisations that are not funded by the government, abuse cover is not mandated by legislation, but it is highly recommended in order to manage risk, safeguard children, and protect the organisation from potential liability.

Do non-government organisations (NGOs) working with children need abuse cover in Victoria?

NGOs, including private businesses, sporting clubs, and associations, delivering services to children under a state funding agreement must have appropriate insurance, including child abuse and molestation cover.

What insurance is required for an organisation to receive Victorian government funding for child services?

Victorian government-funded organisations providing child services must typically hold:

Child abuse and molestation insurance - Also referred to as abuse cover
Public liability insurance - Covers third-party injury and property damage
Professional indemnity insurance - For professions where advice or professional services are provided, such as psychologists, dietitians, occupational therapists, tutors, and specialist therapists

Protect your staff and meet funding obligations, see our child-abuse liability insurance options here.

What are the minimum insurance limits required?

When an organisation receives Victorian Government funding to deliver services to children, certain minimum insurance limits apply. These limits are set out in publicly available government guidelines and funding agreement contracts.

Child abuse and molestation insurance - The Victorian government specifies minimum coverage levels for organisations working with children under a state funding agreement. These organisations must hold cover for:
- At least $5 million per claim or in the case of coverage provided on the basis of a monetary aggregated claims amount, $10m per annum¹
Public liability insurance - Although public liability insurance is mandatory for organisations receiving Victorian government funding to provide services to children, a universal limit is not specified. Instead the limit is set by²:
- The specific department administering the funding
- The program or service category
- The organisation's risk level
Professional indemnity insurance - A minimum coverage amount is not defined across the board. Requirements are instead set²:
- Within individual funding agreements
- By the department funding the specific service
- Based on the nature of the professional services provided

Does public liability cover abuse?

Standard public liability insurance can help with the defence costs if a claim is made against an organisation alleging negligence. However, it is generally not sufficient for child abuse risks because it may:

Not cover compensation or damages awarded to claimant
Provide lower coverage than required by funding agreements, for example, a policy may offer $2 million, while $5 million is the mandated limit
Lack specific personal injury protections - funding bodies often require coverage to include mental injury, shock, or trauma experienced by children²

Child abuse insurance can be structured in two ways:

Affirmative cover: The policy explicitly lists child abuse or molestation as covered, often with specific terms and conditions
Silent cover: The policy does not explicitly mention child abuse, but it also does not exclude it. In this case, claims may still be covered under general personal injury provisions

Because public liability alone is unlikely to meet funding requirements or fully protect an organisation, dedicated child abuse and molestation cover is recommended.

Protect your staff and meet funding obligations, see our child-abuse liability insurance options here.

Which organisations can get child abuse insurance through VMIA?

Not-for-profit incorporated associations or guarantee companies with an ongoing state funding agreement for child services, and that do not belong to another insured group (such as a diocesan, school system, or local government), are generally eligible for the VMIA (Victorian Managed Insurance Authority) child-abuse liability cover under CSOE³^,4.

For-profit childcare providers, private sporting or religious groups, and services run under a broader organisation, or those funded only partially or occasionally by state grants are typically not covered by VMIA. These organisations need their own commercial insurance that meets funding guideline standards. If they are not being funded by the Victorian Government, they should still consider liability and abuse cover.

It's important to note that even if your business is eligible for cover provided by VMIA, you may face gaps in coverage, and historical or legacy incidents may not be included. VMIA states that "some historical incidents may not be covered". This may be a significant risk, particularly for older organisations.

Is child abuse cover necessary if it isn't legally required?

Even if your organisation is not legally required to hold child abuse cover, there are compelling reasons to do so:

Protecting children and vulnerable clients - financial support for victims' claims ensures responsibility is met
Mitigating financial risk - abuse claims can be costly and potentially catastrophic.
Maintaining public trust and reputation - families and regulators expect organisations to manage risks proactively
Future-proofing against claims - abuse claims may emerge years after the incident, making long-term coverage critical

Why are more organisations seeking child abuse insurance now?

Recent high-profile incidents in childcare and youth services have highlighted the need for robust abuse cover. Organisations are increasingly seeking insurance to:

Meet funding compliance requirements
Safeguard against historical claims
Demonstrate due diligence to parents, regulators, and boards
Ensure organisational resilience and risk management

Protect your staff and meet funding obligations, see our child-abuse liability insurance options here.

Why is child abuse insurance so specialised?

Child abuse and molestation insurance has become highly specialised for the following reasons:

Historical claims surge - In 2015, Australia removed the statute of limitations for civil sexual abuse claims, allowing survivors to bring claims decades after incidents. This greatly increased the volume of potential claims, prompting insurers to tighten or limit coverage.
Royal Commissions and data - Multiple Royal Commissions into institutional child abuse have provided detailed data on claims, which underwriters use to assess risk, leading to stricter underwriting.
Limited specialists insurers - Only a small number of insurers offer child abuse cover due to the severity and unpredictability of claims, as well as claims often arising years later.

How Coverforce can help

Coverforce works with organisations of all types to secure appropriate child abuse and molestation insurance. Our team can help identify policies that meet funding requirements and match your organisation's risk profile. If your organisation provides services to children and you are unsure about your insurance requirements, contact Coverforce today.

REFERENCES

https://www.justice.vic.gov.au/safer-communities/protecting-children-and-families/organisations-providing-services-to-children-new
https://www.vic.gov.au/victorian-common-funding-agreement-forms-and-templates
https://www.vmia.vic.gov.au/sites/default/files/2025-07/CSO-Insurance-Guide-2025-2026.pdf
https://www.vmia.vic.gov.au/sites/default/files/2025-07/CSOE-Insurance-Guide-2025-2026.pdf

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