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Guide to Retail Pharmacy Insurance

Business insurance is an immensely important and legally essential part of running a modern company. All professional businesses are at risk of a customer being injured on their premises, an employee feeling they were discriminated against or treated unfairly, and a host of other potential liabilities, and so every business needs insurance protection.

A standard business owner’s insurance policy can protect a business against loss or liability by combining a variety of coverages, but the varying risks across industries mean that different businesses may need specialized insurance plans.

For instance, pharmacies face unique risks and therefore require several different types of insurance to cover and protect them against unique liabilities. We’re going to look at these aspects of retail pharmacy insurance, what coverage retail pharmacies need, and why this coverage is so essential.

Risk Factors for Pharmacies

Because pharmacies play a part in providing care for patients who may be facing extreme health problems, they face unique risks that leave them vulnerable. As a business, you need to know what situations make you liable, so that you can make an informed decision about the insurance your pharmacy needs.

Storing and Dispensing Drugs

Working with drugs leaves a pharmacy liable for obvious reasons. Should the medications you store and dispense be secured, used, or distributed improperly, your business could be held accountable.

Medical Advice

As a pharmacy, your employees will be asked for medical advice. When dispensing certain drugs, you are legally required to provide patients with guidelines for proper dosage and use. If essential information is presented inaccurately or omitted, you could be held responsible for resulting health complications.

Business Premises

Having a physical business location where customers can frequent puts any business at risk of legal issues. Whenever your pharmacy is frequented by workers, delivery drivers, or patients collecting prescriptions, you may be liable for any accidents or injuries that happen to people on your premises.

Types of Insurance

Keeping in mind the factors above, these are several of the policies recommended for retail pharmacies:

General Liability Insurance

This is the most common type of business insurance. It covers situations where a customer or other individual is injured or harmed on your business’s property, and it will cover the costs of legal fees, medical expenses, settlements, and more. Every business needs general liability insurance to protect itself from accidents, and pharmacies are no exception.

Professional Liability Insurance

Professional liability insurance is necessary for specialized occupations such as healthcare providers. It covers you if you are sued for making a mistake in the course of your work. For instance, making a dispensing error or unintentionally giving incorrect medical advice can leave you open to legal issues. In any lawsuits that may arise over these issues, professional liability insurance will protect you.

Workers’ Compensation 

Workers’ compensation is a form of insurance that covers the wages of employees who may need to take time away from work due to work-related injury. This form of insurance will help you look after your employees and protect the company at the same time. All businesses should have some form of workers’ compensation to be able to provide replacement wages for those who are unable to work due to an accident or injury. 

Commercial Auto Insurance

If your pharmacy uses commercial vehicles for deliveries or pickups (as is becoming increasingly more popular with the rise of telepharmacy services), you need commercial auto insurance to protect your vehicles, products, and drivers. Even if employees use personal vehicles for work tasks, a separate policy is needed, as personal auto insurance will not cover damage caused from a work-related accident.

In addition to these basic types of business insurance, retail pharmacies may require additional coverage depending on their needs, including business income insurance, on-site equipment insurance, coverage for inventory loss, and more. You can speak with a qualified agent to learn exactly what coverage your business needs and to get a customized insurance policy.

There are plenty of factors that retail pharmacy owners need to consider when deciding on insurance policies. The consequences of going without the necessary insurance could be disastrous for your business. It’s worth the time to figure out what your pharmacy needs in order to get the comprehensive coverage that will best protect you.