Commercial Insurance for Pharmacies
Wherever you travel across the country, there is almost always a pharmacy to refill a prescription or pick up a couple of over-the-counter medications. In recent years, these businesses have started expanding their operations to offer more features and benefits for their customers. But, with more features comes additional risks. Pharmacies looking to protect themselves against emergencies and lawsuits should be equipped with adequate insurance coverage.
To protect yourself in the event of an injury on the premises or an incorrect dosage prescribed, the following policies are essential for pharmacies:
General Liability – This type of insurance, either alone or as part of a Business Owners Policy, has two purposes. One, it offers coverage when a customer is injured on your premises and you need to pay for both medical expenses and potential negligence lawsuits. Secondly, to help cover expensive legal fees, this policy essentially protects your pharmacy’s financial assets, ultimately helping you stay in business.
Property Insurance – Would you be able to re-open your doors after a fire, natural disaster or theft? When these disasters damage your building and its contents, property insurance helps you get back on your feet so you don’t have to remain permanently closed after a storm.
Data Breach Coverage – Many pharmacies use a computerized system to manage patient records, from medication refills to requests from doctors. Did you know that healthcare is the number one industry affected by data breaches? Due to these factors, your business is particularly vulnerable to hackers, who might usurp patient insurance information, medical records and credit card numbers to commit identity theft or financial fraud. To protect yourself against such breaches, make sure you have insurance coverage for your electronic system and records.
Professional Liability – Any mistake you make – or even a perceived mistake – can be the subject of a lawsuit, which involves legal fees. Nearly 75 percent of all claims against pharmacies concern the medications dispensed, including incorrect drugs and dosages. On average, these businesses have to pay about $14,000 when taken to court. Additionally, the nature of the pharmacy business exposes you to:
- Allegations of libel, slander and false advertising
- Potential drug interactions
- Incorrect labeling of a drug sold through your pharmacy
- Incorrectly dispensing a medication
- Allegations of inadequate counseling and consultation
Professional liability, also known as an errors and omissions policy, can assist with legal fees and other expenses, further helping you keep your business afloat.
Equipment Breakdown Coverage – Supplemental to your property insurance, equipment breakdown coverage offers additional protection for your computer, phone systems and other essential operational supplies. When these burn out, this type of policy not only assists with repairing or replacing your system or equipment, but can further compensate you for the temporary period you had to close.
Commercial Auto Coverage – Certain pharmacies use a vehicle to make deliveries or go out into the community for consultations and vaccinations. If this sounds like your business, a standard personal auto policy doesn’t offer enough coverage. To be prepared in the event of an accident, take out commercial coverage for any company cars.
Business Owners Policy – If you run a smaller pharmacy with one or a handful of locations, consider taking out a Business Owners Policy. Ideal for small and medium-sized businesses, this policy combines your general liability and property insurance with business interruption and loss of income coverage.
Workers’ Compensation – Many pharmacies employ a staff of full-time workers, who may be dispensing medications or stocking shelves. Accidents can and do occur on the job and, for this reason, nearly all states require businesses to have workers’ compensation insurance. To comply with the law and make sure you have enough coverage for your workers’ medical expenses and time away, take out a policy suited to your business’ needs.
Does your Connecticut pharmacy have enough insurance coverage? To review your existing policies, contact Ion Insurance at 203.439.2815.
