Business Insurance for RTO's

Insurance for a Registered Training Organisation (RTO)*

As RTO’s provide services to members of the public they require business insurance to protect themselves and their organisation

Professional indemnity insurance cover may protect owners of RTO’s from claims against them for breach of professional duty.

For example, what if an RTO provides a new learning program or workshop that results in poor outcomes their students?

Or, if an RTO provides incorrect assessments ?

Public liability insurance cover may protect owners of RTO’s from claims against them for harm to students . For example, slip and trip accidents  .

A combined professional indemnity and public liability policy may be available for RTO owners.

Cyber Insurance may provide cover if an RTO’s networked computers are hacked, and confidential client data is stolen.

Management Liability Insurance should be considered for RTO’s , as with multiple employees,  they may be liable when things go wrong with Human Resources, Statutory Liability and OH & S.

RTO owners may also face risks in relation to the commercial premises they operate from risks such as fire, perils, and theft or may be liable if a client slips and falls down their stairs, badly injures themselves and claims against them.

Fortunately, suitable business insurance for RTO owners may provide protection against financial hardships that could arise from poor advice, computer hacking, employee matters, accidents, property damage, or legal claims caused by your RTO business activities.

Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

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What Insurance Do I Need as an RTO provider?*

Some of the major types of business insurance covers available to RTO’s in Australia are explained below and include:

  • Professional Indemnity Insurance
  • Public Liability Insurance
  • Business Pack Insurance
  • Cyber Insurance 
  • Management Liability Insurance

Professional Indemnity Insurance for Registered Training Organisations (RTOs)*

Professional indemnity insurance is an essential cover for RTO’s.

RTOs are the only organisations in the Australian VET system authorised to deliver and assess nationally recognised training.

To deliver this training, they need to be approved by ASQA

If an RTO makes an error, such as providing incorrect information, makes an omission, or provides training that is inappropriate a client may seek to recover losses from RTO.

For example, an RTO provides a new learning program or workshop that results in poor outcomes their students?

Or, if an RTO provides incorrect assessments ?

Professional Indemnity Insurance may help RTO’s stay in business by paying for legal defence costs, public relation expenses, privacy breach costs and financial losses if awarded against them.

The following professional indemnity insurance covers may be available to companies providing RTO services for a breach of professional duty:

  • Civil Liability
  • Contractual Liabilities
  • Libel and Slander
  • Unintentional Infringement for Intellectual Property
  • Claims Preparation
  • Breach of Confidentiality
  • Indemnity To Contractors
  • Legal Consultation

Public Liability Insurance for Registered Training organisation (RTOs)*

The following public liability insurance covers may be available to RTO’s

Business insurance pack for RTO’s*

RTO’s may be able to combine multiple covers in a single business insurance pack policy.

By ‘packaging’ their business insurance into a ‘business pack’ RTO’s can potentially cover many of the risks their business faces in the one policy.

For example, if an RTO has a commercial premises, a business insurance pack may provide cover for buildings and contents if they are accidentally damaged by a defined event, such as fire, storm, impact damage, accidental damage, vandalism, or malicious damage.

Other typical inclusions for RTO with a business insurance pack are Public Liability & Products Liability Insurance.

If a client slips and fall down your stairs, badly injures themselves and claims against you, Public Liability Insurance may assist you.

Optional inclusions for RTOs with a business insurance pack are General Property, Contents including Fit Out, Theft, Glass, Business Interruption andMachinery Breakdown

For example, computers may be covered if burgled, and loss of profits may be covered under business interruption if caused by a defined event.

Multiple learning locations may be able to be covered on the one business pack insurance policy.

Cyber Insurance for  RTOs *

Your business’ computer system network contains confidential client data, which is a target for hackers.

Cyber insurance may protect your business if your client’s data is held at ransom, cyber extortion or even privacy breaches resulting from Cyber-attacks. 

Cyber insurance may cover costs resulting from a cyber incident, including IT forensics, virus extraction, customer/client notification costs and public relation costs.

Help reduce the impact of damages from a cyber event with cyber insurance – and keep your RTO  going.

Management Liability Insurance for  RTOs

As RTO’s typically have multiple employees , Management Liability Insurance may provide valuable protection for directors, for specified issues relating to Human Resources, OH & S and Statutory Liability.

Why do RTO’s need public liability insurance?*

Public Liability Insurance coverage is essential for all RTOs.

People and property on site may be hurt or damaged due to accidents involving your RTO business activities.

Protections for RTOs through public liability insurance in Australia generally include:

  1. Injury to other persons due to your RTO activities – For example, a client is injured when they trip and fall in your RTO premises.
  2. Damage to others property due to your business activities.

Public liability insurance coverage may protect RTO from claims that arise when others allege they are negligent.

An RTO’s public liability policy may provide a defence against the ensuing lawsuit when needed and may pay the damages sought by the injured party.

Public Liability Insurance may provide RTO’s with protection for slip-and-trip accidents.

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What are the costs of RTO Business Insurance?*

How much does business insurance, including public liability insurance, cost for RTO’s?*

Key factors in determining how much business insurance will cost an education consultant include:

  • the size and turnover of your RTO
  • number of staff
  • number of students
  • the optional covers selected
  • your claims history
  • Experience and qualification of directors/partners
  • Areas of practice
  • Fee Revenue
  • Breadth of Coverage
  • Indemnity Limit
  • Excess / Deductible

Our helpful business insurance brokers may be able to help you find suitable and affordable business insurance for your RTO on 1300 542 573 

What type of RTO’s may be covered with business insurance?*

Cover may be available for the following Registered Training Organisation (RTOs)*:

  • Accredited and Non Accredited Training
  • Registered Training Organisation Auditing
  • Education Consulting Services
  • Training Consulting Services
  • Learner Driver Training
  • Classroom based & On-line distance education training. Training in a traditional classroom environment or online e.g. reading, language teaching, computer training etc.
  • Classroom training with a minor physical component for part of the module or course. Includes training in arts and crafts such as painting, calligraphy, knitting, origami, sculpture, pottery, card making etc.
  • Indoor Training with a physical training component. Includes Woodwork, hairdressing, first aid training, aged care training, childcare training.
  • Outdoor Training with majority of training being undertaken outdoors. Includes Driver training, security training, operation of any machinery or equipment, construction industry training, mining industry training).

Why should RTOs use an insurance broker in Australia?*

If you are an RTO provider deciding on whether to use an insurance broker for your business insurance, it is important to consider that brokers act in the interests of you, not the insurer.

Direct insurers and agents act for the insurer This can be important; especially if you need to claim.

Brokers can help RTO owners by sourcing competitive quotes on policy inception, negotiate with the insurance companies to prevent or limit increases on renewal, remarket your policy to other suitable insurance companies where appropriate, talk to underwriters about policy wordings, industry classifications and terms, talk to insurance assessors during the claims process and repairers where necessary.

How do I get an RTO  insurance quote?*

Simply TALK to a SMART Business Insurance broker on 1300 542 573 or contact us online for suitable and affordable business insurance quotes for your RTO.