Healthcare practice entity insurance

To be entitled to cover under the Practice Entity Policy, you must have a membership basis of private practice, hold a proprietary interest in the entity, and fit one of the following scenarios:

The definition of an eligible practice entity can be found in Members' Insurance Covers Handbook which defines a practice entity as:

  • any company in which a MIPS member has a proprietary interest and the majority of shares are owned by MIPS members who are also the majority of working practitioners in the entity.
  • any partnership in which a MIPS member is a partner and the majority of partners are MIPS members who are also the majority of working practitioners in the entity.
  • any entity notified by a member to MIPS and agreed in writing by us.

Is my practice eligible?

Complete the Practice entity, cyber, privacy and media cover application form if you are unsure if your practice meets the definition.

Practice structure

The following examples help illustrate whether a practice is covered under the Practice entity Policy.

Practice Entity Icon Green Man MIPS member

= Member working practitioner

Practice Entity Icon Black Man silent partner

= Non-member working practitioner

Practice Entity Icon Red Man Non Member

= Silent non-working partner

Healthcare practice covered under the Practice Entity Policy

Tick Practice Entity Icon Green Man MIPS member Practice Entity Icon Green Man MIPS member Practice Entity Icon Green Man MIPS member Practice Entity Icon Red Man Non Member
Ownership 25%
25% 25% 25%
Working 25% 25% 25% 25%
  • The majority of owners of the entity are MIPS members
  • The majority of working practitioners of the entity are MIPS members

Healthcare practice NOT covered under the Practice Entity Policy

Cross Practice Entity Icon Green Man MIPS member Practice Entity Icon Green Man MIPS member Practice Entity Icon Red Man Non Member Practice Entity Icon Black Man silent partner
Ownership 25% 25% 25% 25%
Working 33.3% 33.3% 33.3% 0%
  • The majority of owners of the entity are NOT MIPS members (must be a majority of greater than 50%)
  • The majority of working practitioners of the entity are MIPS members, however, your entity must meet both the ownership and working requirements to be eligible.

For the policy definition of a practice entity see the Practice Entity Policy in the Members' Insurance Covers Handbook. If you are unsure if your practice structure meets the required definition under the Practice Entity Policy, you can email info@mips.com.au with details for confirmation.


What type of things does it cover?

Even without treating a patient there is risk of a claim, complaint or legal action being brought against your practice or practice staff. For example, loss of patient records, privacy breaches or failure in duty of care may not directly relate to the healthcare provided to a patient but can be the basis of a claim, complaint or legal action.

The MIPS Members’ Practice Entity Policy provides protection for your practice and practice staff. Key features of the policy are:

  • cover to $20 million for each claim, and in the aggregate, for the policy period (ie financial year)
  • cover for claims made against your practice entity of practice staff
  • cover for defence costs

Practice staff excludes doctors, dentists, allied heath practitioners or any staff that are required to have their own registration, eg a nurse. Staff such as receptionists, dental assistants or technical operators are included, see the definition of practice staff in clause 15.14 of the policy in the Members' Insurance Covers Handbook and for more information on GP practice insurance