Professional Liability Insurance for Pharmacists

Pharmacist professional liability insurance is coverage designed to protect pharmacists when a patient claims an actual or alleged error or omission within the scope of your practice.

No pharmacist acts with the intent to harm patients. However, the busy and fast-paced environment of pharmacy working conditions, coupled with the massive volume of prescriptions, opens the door to mistakes and errors. Additionally, the evolving nature of pharmacy practice puts pharmacists in new roles that carry new considerations. For these reasons, no pharmacist should risk practicing without adequate pharmacist liability insurance.

Why does an individual pharmacist need their own insurance?

The scope of practice may vary by individual states and licensing boards, but it generally involves any activity related to your profession. This includes not only dispensing prescriptions, but pharmacists offering professional consultation, outreach, independent drug therapy, medication management, immunization, or ambulatory care.

The more independently you operate as a pharmacist, the greater the need for individual liability coverage. While it is true your workplace may provide some degree of coverage; it’s essential to understand the limits of your employer’s general liability insurance coverage.

Employer coverage often extends to employees acting under their duties as defined by the employer. However, employer coverage is commonly designed to protect the business or organization, not necessarily the individual employee. Furthermore, employer coverage typically does not extend to activities unrelated directly to your employment with that institution. Employer coverage also may not benefit the pharmacist when patients file claims to the board of pharmacy as opposed to filing legal actions in search of monetary awards. For these reasons, it’s advisable to have individual liability insurance coverage.

What is covered with pharmacist liability insurance?

Limits of liability and what we cover include:

Coverage is available on a Claims-made or Occurrence basis with limits of $1 million for each claim or occurrence and $3 million aggregate (higher limits may be available).

Professional Liability coverage includes:

Coverage Options:
- Exclude Sterile Compounding
- Include Sterile Compounding
- Advanced Pharmacist License
Immunizations and Other Drug Administration
COVID-19 Testing and Immunizations
Drug Regimen Reviews
Medication Therapy Management
Drug or Drug-Related Research
Medication Consultation
Drug and Device Storage
Participation in Drug and Device Selection
Point-of-Care Testing

Pharmacist License Defense - $250,000 limit
Board of Pharmacy Imposed Costs* - $2,500 limit
HIPAA Claim Defense - $50,000 limit
Assault - $25,000 limit
Sexual or Physical Abuse - $50,000 limit (higher limits may be available)

*Costs do not include fines or penalties.
Coverage may not be available in all states and territories.
See policy for full description of coverages.

Who is covered by our pharmacist liability insurance policies?

At Pharmacists Mutual, we are committed to providing you with the coverage you need when you need it most. Our professional liability policy is specifically tailored to protect your livelihood and reputation because Pharmacists Mutual’s mission is to help our customers attain peace of mind through specialized insurance products, risk management solutions, and superior personal service.

We also provide coverage to the following professionals:

Employed Pharmacists
Hospital Pharmacists
Community Pharmacists
Clinical Pharmacists
Long-Term Care Pharmacists
Nuclear Pharmacists
Consultant Pharmacists
Self-Employed Pharmacists
Volunteer Pharmacists
Retired Pharmacists
Pharmacy Instructors
Student Pharmacists

What should you consider when choosing a pharmacist professional liability policy?

When determining whether or what type of individual liability coverage you need, it’s useful to consider any number of scenarios. Consider these:

What if you were named individually in a lawsuit?
What if your current employer does not have the proper coverage in place to protect you?
What if you provide COVID-19 testing or immunizations?
What if you have a second job, volunteer, or give advice to a friend or neighbor?
Are you covered for suits filed after you have terminated your employment?
Are you provided with reimbursement for lost wages, licensing board hearing reimbursement, and defense costs?
Are the employer policy limits high enough to protect you and all of your co-workers?

These types of questions can highlight the deficiencies in relying solely on your employer’s pharmacy coverage. An individual professional liability policy, such as those offered by Pharmacists Mutual, provides you peace of mind. In any claim or litigation, you have coverage, including attorney and legal representation, claims investigation, reimbursement of lost wages, and coverage of court costs.

With over 110 years’ experience in the pharmacy industry, Pharmacists Mutual understands the risks and challenges you face. Because the pharmacy industry is ever-changing and expanding, there is a proportional risk in professional liability exposure. The Pharmacists Mutual professional liability policy is specifically tailored to protect you and your business.

Claims-Made vs. Occurrence

Claims-Made

Lower premium in early years
A claim made within the policy period triggers the policy to respond
Insures risk from past services with the present coverage benefits
Allows consideration of today's legal environment when setting policy limits and deductibles

Occurrence

Premium may be higher
An incident occurring within the policy period triggers the policy to respond
Policy limits and coverages in place at time of loss apply
Inflation may increase the likelihood that policy limits will be inadequate

Pharmacists Mutual offers both Claims-Made and Occurrence policies, although we may write certain coverages on a specific type of policy. For example, our professional liability policies mainly have Claims-Made coverage, while general liability insurance is typically available as an Occurrence policy.

What is a Claims-Made Policy?

It provides coverage for a loss occurring after the retroactive date and before the end of the policy period, as long as the claim is reported during the policy period or extended reporting period.
The applicable coverage provided is from the policy in force at the time the claim is made and reported.
An extended reporting period may be purchased when a Claims-Made policy is canceled to extend the timeframe in which a covered claim may be reported.

CLAIMS-MADE EXAMPLE

This claim may be eligible for coverage under a Claims-Made policy because the incident or loss was reported during the policy period, and the loss occurred after the retroactive date. The loss may also be covered if it was reported after the policy’s expiration but within the extended reporting period.

WHAT IS AN OCCURRENCE POLICY?

It provides coverage for a loss occurring during the policy period, regardless of when the claim is reported, as long the incident occurred within the policy period.
The applicable coverage provided is from the policy in force at the time of the incident.

OCCURRENCE EXAMPLE:

This claim may be eligible for coverage under an Occurrence policy because the incident or loss occurs within the policy period even though it is reported after its expiration date.

Are you ready to safeguard the investment you’ve made in your career? Click the link below to apply for our Individual Pharmacist Professional Liability Policy. For more information, contact our team below or find a local field agent in your area.

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