Small business insurance is an essential part of running a pharmacy. If you want to protect your company and your employees, you need to look at getting the right kind of pharmacy business insurance to keep you, your employees, and your customers safe in 2021.
Which Pharmacy Business Insurance Policies Do You Need?
The sheer amount of insurance options for small businesses can be overwhelming. But what do you actually need as a pharmacy?
Liability insurance, covered by general and professional liability, is the most critical type of pharmacy business insurance. In fact, it’s so vital that we’ll cover it in a separate section.
Worker’s Compensation Insurance
You should consider workers’ compensation, which covers expenses if one of your employees receives injuries in a work-related incident. You may end up having to pay for costs ranging from hospital bills to funeral costs in a worst-case scenario. However, you are covered for this type of expense if you have worker’s compensation insurance, bringing peace of mind to you, your employees, and their families.
Commercial Auto Insurance
Commercial auto insurance is the other insurance to consider if your pharmacy has any type of vehicle used for business purposes. This insurance will cover potential costs related to any vehicle accident. You need commercial auto insurance if you do any type of delivery because it prevents loss of revenue due to product or vehicle damage and covers the driver and other legal costs.
Liability Insurance and HIPAA Regulations
All pharmacies must adhere to the various HIPAA compliance standards, as they are managing large amounts of confidential patient data. Even just talking to a patient about their health issues can become problematic if someone overhears. The sheer amount of patients that move through a pharmacy on any given day means there is a lot of data to manage, especially since the rules have become stricter with HIPAA regulations.
There are two main types of liability insurance for your pharmacy: general liability insurance, and professional liability insurance, also known as Errors and Omissions (E&O) insurance.
General Liability Insurance
This type of pharmacy business insurance protects your pharmacy from losing money on a range of potential problems. According to the Insurance Information Institute (III), general liability insurance should be one of the first policies small businesses obtain, as accidents really do happen all the time.
For example, if a patient slips and falls in your pharmacy, they may sue you for medical expenses. This is where your insurance will protect you from paying too much. General liability also covers incidents such as accidents, property damage, and even libel or slander. If you end up going to court, your general liability insurance policy will cover some of those costs.
Professional Liability Insurance
If someone feels that a pharmacist has made a mistake or caused a problem while working within their scope of practice, they can sue that pharmacist. In case of a lawsuit, professional liability insurance allows you to hire an attorney to help you with your case in court and pay reasonable costs incurred during the actual case or claim investigation. It may also cover any lost wages because of the claim and some court costs.
Ideally, you’ll have both types of liability insurance to protect yourself and your business against any potential issues.
Employment Practices Liability Insurance (EPLI)
Employment Practices Liability Insurance (EPLI) includes coverage for defense costs and damages related to various employment-related claims including allegations of Wrongful Termination, Discrimination, Workplace Harassment, and Retaliation.
Even with the most stringent employee training and policies in place, employment practices liability coverage is important to consider since employees can still allege wrong-doing, even if your organization has done nothing wrong.
Find the Right Insurance for Your Pharmacy
Getting the right coverage for pharmacy business insurance can be hard, which is why agents at Bethany Insurance work hand in hand with pharmacies to find the right fit.
Contact Bethany Insurance today, and our expert agents will help you find the perfect small business insurance to give you support and peace of mind.
