Pharmacy insurance is a protection plan for retail, compounding, consulting, and other types of pharmacies. With this, you enjoy a shield against liability lawsuits, malpractice claims, business property damage, and other exposures. Read this guide to know how this works, the cost of premiums, and the best companies.
Customers can sue your pharmacy for the wrongdoings and oversights of its pharmacists, pharmacy technicians, pharmacy assistants, and other employees. Here are some examples:
A compounding pharmacy in New York faced a $30,000 negligence claim for drug poisoning
A Baltimore pharmacy was accused of filing fraudulent prescriptions and faced a $15,000 fine
A famous pharmacy chain had to pay $25.8 million after a teenage pharmacy technician made a blunder and gave a customer blood thinner pills 10 times greater than the intended amount
Pharmacy liability insurance programs offer malpractice insurance. Also called professional liability insurance, this grants a shield if your pharmacy faces a lawsuit due to the oversights or negligence of employees. Malpractice insurance grants $2 million-$5 million you can use to:
Cover attorney fees, investigation fees, and other defense costs
Note that negligence and errors are just two of the perils malpractice insurance can cover. Other exposures that this insurance can take care of are breach of confidentiality, violation of fair dealing, violation of good faith, and breach of contract.
It’s possible for your pharmacy’s malpractice insurance to be comprehensively underwritten. And so, it might also provide additional benefits such as:
$250,000 defense coverage if regulatory bodies conduct an investigation and file a lawsuit against your business
$25,000-$50,000 defense coverage for HIPAA violation claims against your business
$250,000 for proceedings involving the termination or suspension of your pharmacy’s license
Your pharmacy has liability if an accident happens within its premises that result in the injuries or property damage of customers. Because of this, pharmacy business insurance packages allow you to get a general liability policy.
General liability insurance covers claims for bodily injuries or property damage filed by customers, independent contractors, vendors, and other third parties against your business. Use this insurance when:
A customer sues your pharmacy after choking on a tablet
An independent contractor falls from a height while installing signage or cleaning your storefront
An employee of a supplier experiences an accident while unloading supplies and demands compensation from your pharmacy
So what costs does general liability insurance help you pay for? This insurance usually covers these expenses:
Medical treatment of injured third parties
Reimbursements for property damage
Attorney fees, court filing fees, investigation fees, and other defense costs
Pharmacy general liability insurance provides $1 million-$2 million minimum coverage to claims for bodily injuries and property damage. But note that this isn’t the only perk you enjoy. This insurance also provides these additional coverages:
$1 million coverage to claims for slander, copyright infringement, libel, breach of confidentiality, and invasion of privacy
$300,000 indemnification to the landlord if a commercial space you’re renting gets damaged by fire
Coverage for the medical treatment of third parties who gets injured in an auto accident caused by a hired/borrowed commercial auto
Customers might file a claim and accuse your pharmacy of selling expired drugs and other consumer goods. This isn’t far from happening. Look at this example:
A popular online pharmacy was sued by stores in Pennsylvania and had to pay $450,000 after allegedly selling expired over-the-counter drugs, infant formula, and dairy products
Malpractice insurance might provide coverage if a customer accuses your pharmacy of keeping and selling expired products. Nonetheless, the policy that surely grants protection is product liability insurance.
Product liability insurance doesn’t only cover claims for the sale of expired products. It will also grant a shield if you allegedly sold products with:
The minimum coverage your pharmacy can get from product liability insurance is $2 million. Use this to cover expenses for:
Medical treatment of customers who got sick or injured after using the product of your pharmacy
Product recall and extra labor
Lawsuits against pharmacies are always in six or nine figures. It’s really easy to use all the funds of your general liability, product liability, or malpractice insurance. Consider getting excess liability insurance if you fear running out of coverage when you need it.
Excess liability insurance, also called umbrella liability insurance, is a type of pharmacy insurance policy that doesn’t grant protection against any type of liability.
Instead, it adds an extra layer of coverage to your general liability, product liability, or malpractice insurance. So in other words, this insurance will:
Grant emergency funds if your general liability, product liability, or malpractice insurance runs out of money
Cover excess you need to pay yourself if general liability, product liability, and malpractice insurance lacks the funds to cover a claim fully
Note that sometimes, excess liability insurance is automatically added to general liability and malpractice insurance. In this case, it will provide $5 million-$10 million.
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The dedicated building or commercial space you rent, lease, or own for a pharmacy business might get destroyed or damaged. Building repair or reconstruction is never cheap, so get commercial property insurance.
By the way, don’t think that this policy is useless if you run an online pharmacy because you still need to cover the warehouse where the drugs and other products are stored.
You use commercial property insurance to cover building repair or reconstruction costs. This insurance will provide the money for such a purpose if your pharmacy gets damaged or destroyed due to:
Aside from the repair or reconstruction of the building, you can also use commercial property insurance to replace drugs and other products in your stock or inventory that get damaged or lost due to the perils we mentioned.
Commercial property insurance does more for your business. Most underwriters include the following additional benefits in this policy:
$2,500 coverage for outdoor installations such as fences, trees, antennae, and signs
$5,000-$10,000 coverage for in-premises or off-premises property
$10,000 coverage for accounts receivable
$10,000 coverage for lost income due to computer breakdown
$2,500-$5,000 coverage for interrupted utility services
Consider getting inland marine insurance as a stand-alone policy or floater to commercial property insurance if your pharmacy operates in more than one location and products or equipment need to be moved between stores.
On its own, commercial property insurance doesn’t grant reimbursement or provide a replacement for your pharmacy’s products and equipment that get lost during a trip.
This is the reason why you get inland marine insurance. Inland marine insurance kicks in when products and equipment get lost during transportation because of:
Error of your employee or shipping carrier
Equipment breakdown insurance is useful if you’re running a compounding pharmacy. After all, there is much equipment to be insured such as applicators, dispensers, capsule machines, balances, and more.
By having equipment breakdown insurance, you can cover the cost of repairing or replacing drug compounding equipment that get lost or damaged because of:
You can get equipment breakdown insurance as a stand-alone policy that might provide $50,000 or more. Nonetheless, purchasing this as a floater to general liability insurance or commercial property insurance is the most convenient option.
Commercial auto insurance is very helpful if your pharmacy owns and uses a commercial vehicle to deliver products to customers or take drugs and other products to other business locations and partners.
There are different types of coverage included in the policy wording of commercial auto insurance. But in a nutshell, this insurance does the following on behalf of your pharmacy:
Provide a minimum of $25,000 coverage for bodily injuries and $15,000 coverage for property damage that results from an accident your commercial vehicle caused
Cover a portion of or all of the expenses for parts repair or replacement if your pharmacy’s commercial vehicle got damaged because of a collision, fire, theft, vandalism, weather, and other covered perils
Cover the medical treatment of the driver and passengers if the commercial vehicle got involved in an accident that an uninsured/underinsured driver caused
Reimburse expenses if you need to hire a commercial vehicle while the commercial vehicle of your pharmacy is being repaired
Running a pharmacy is impossible without employees. And when you employ people, the law requires you to get workers' compensation insurance.
Workers' compensation insurance kicks in when an employee sustains an occupational disease or injury. You use this to cover the following expenses:
Surgeries, EMT services, and other expenses for medical treatment
Rehabilitation and retraining
Funeral expenses and allowance to dependents in case of death
Not getting workers' compensation insurance is punishable by state laws. Most will impose a stop-hold order, an accumulating fine, or a fine twice your pharmacy would’ve paid for workers comp premiums. In the worst case scenario, authorities might treat your violation as a felony or misdemeanor punishable by 6-month or 1-year imprisonment.
Your pharmacy’s workers' compensation insurance will come with employer’s liability insurance. Employer’s liability insurance kicks in when an employee sues your business for negligence after sustaining a work-related injury or disease. Your pharmacy enjoys these benefits from this policy:
$1 million coverage when an employee files a claim for an occupational disease
$1 million coverage when an employee files a claim for an occupational accident
The operations of a drugstore are smaller than that of a pharmacy. And so, insurance companies underwrite tailored coverage for these businesses although they can be insured under a pharmacy insurance package.
Drugstore insurance consists of a general liability policy, commercial property policy, employee dishonesty insurance, and professional liability insurance.
The general liability insurance for drugstores has a $500,000 per occurrence and aggregate limit. And since drug stores sometimes sell food, insurance companies include foodborne illness coverage.
Commercial property insurance, on the other hand, has a $25,000-$50,000 minimum limit. Finally, the professional liability insurance of this insurance package has a $1 million limit.
Expect to pay $52.58 per month or $630.96 per year for a $1 million general liability insurance. This pharmacy liability insurance cost estimate assumes that you have 5 employees and make $500,000-$750,000 per year. Here’s a table showing the estimated rates of carriers you might want to try:
|Cost per Month||Cost per Year||Best for|
|CoverWallet||$36.12||$433.44||Pharmacy insurance quotes comparison online|
|Tivly||$38||$456||Comparing pharmacy insurance quotes over the phone|
|Thimble||$40.18||$482.16||On-demand pharmacy insurance|
|Hiscox||$42||$504||Pharmacy insurance with worldwide coverage|
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These are the best pharmacy insurance companies. Read to know their pros, cons, and rate for a $1 million general liability insurance.
Compare pharmacy insurance quotes online for free
No hidden charges
Zero deductibles on general liability insurance
Name an unlimited number of additional insureds on your policies
Pay for premiums and manage insurance online
Not an insurance company but an insurance broker
CoverWallet sells workers' compensation insurance, commercial property insurance, general liability insurance, and malpractice insurance for pharmacies.
Your general liability insurance from CoverWallet provides $1 million for each claim for bodily injuries or property damage. Additionally, the policy grants a $2 million coverage for advertising injuries, $10,000 coverage for medical payments, and $300,000 coverage for a rented commercial space.
Commercial property insurance, on the other hand, has a $50,000 building and contents coverage. No additional perks apply.
Note that CoverWallet allows you to bundle commercial property and general liability insurance in a business owner’s policy. You can also compare quotes online before getting covered.
Best for: Pharmacy insurance quotes comparison online
Average cost: $36.12 per month
Our rating: 10/10
Compare pharmacy insurance quotes over the phone
Responsive customer service
A partner of many reputable insurance companies
You need to call to get a quote
Tivly (formerly CommercialInsurance.NET) provides coverage if its partners can’t cover your pharmacy. You need to speak with a representative to know if Tivly business insurance policies fit the risks of your business. Call Tivly now to compare pharmacy insurance quotes over the phone.
Best for: Comparing pharmacy insurance quotes over the phone
Average cost: $38 per month
Our rating: 10/10
Quick to issue quotes
A partner of Hiscox
Comprehensive BOP for pharmacies
Doesn’t sell commercial auto insurance for pharmacies
Thimble sells a business owner’s policy and workers' compensation insurance for pharmacies. You can also get short-term general liability coverage from this company.
The general liability insurance of Thimble’s business owner’s policy provides $1 million-$2 million coverage for each claim. You also get reimbursement for lost income during trials.
As for the BOP’s commercial property insurance, it provides $25,000-$500,000 building and contents coverage. Additional perks apply such as coverage for outdoor installations and employee dishonesty.
Best for: On-demand pharmacy insurance
Average cost: $40.18 per month
Our rating: 9/10
Fast to handle claims
Coverage for pharmacists is managed by Insureon
Hiscox provides coverage for pharmacies and drugstores through its partner, Insureon. Policies you can get are general liability, malpractice insurance, and more. Consider working with Hiscox because it provides worldwide coverage.
Best for: Pharmacy insurance with worldwide coverage
Average cost: $42 per month
Our rating: 9/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow