Business Insurance Needs for Pharmacies & Drug Stores

Published: June 2014

Your most important job each day is caring for customers, helping them get the right medication and supplies and making sure that your staff treats them with professionalism and attention to detail. Customized business insurance helps give you the reassurance that if anything goes awry in your business, you can quickly get back to your core business of serving customers.

A pharmacist with customers

Whether you're based in a care facility, run a community program, or work as a consultant, here are some business insurance coverages to consider for your pharmacy or drug store:

General liability coverage: This coverage helps protect your pharmacy or drug store's financial assets. It may also help pay for medical costs and other covered costs if a vendor, customer, or anyone else suffers an injury or damages while in your drugstore or pharmacy and you're liable. An example could be a delivery left in an awkward place, which causes a customer to slip, fall, and sustain an injury. This type of coverage is one of the basic types of insurance that every independent business should purchase, according to the Insurance Information Institute (I.I.I.).

Business property coverage: According to the Small Business Administration (SBA), this key type of coverage can be quite broad and can refer to "everything related to the loss and damage of company property due to a wide variety of events" —from fire to vandalism. The particular policy you choose will determine what is considered a covered loss. Your deductible and claim limits will also vary according to your policy.

Data compromise coverage: According to the Identity Theft Resource Center (ITRC), the healthcare industry is now the number-one industry affected by data breaches. Because health-related businesses like pharmacies and drug stores must store a great deal of confidential patient information in electronic files, your customers could be at risk for identity theft or fraud if your system is ever penetrated by criminals. In addition to instituting smart cyber-security measures in your pharmacy or drug store, as recommended by the Federal Communications Commission (FCC), you may want to consider this coverage. This insurance can reimburse you if you incur charges related to notifying your patients of a breach, offering them credit-monitoring services, recovering your own damaged electronic data and more.

Other coverages you might want to consider include:

  • Professional liability coverage: A crucial type of coverage for medical professionals, this coverage can help protect you in case you are sued for alleged mistakes in the course of your work.
  • Equipment breakdown coverage: This specialized coverage can help pay for damage to your phone, computer, electrical or other systems. Depending on your policy, this coverage may apply even in the case of power surges or short circuits, operating mistakes by employees and more.
  • Business auto coverage: If your pharmacy or drug store uses commercial vehicles (for deliveries, for instance), you may need a dedicated business auto policy. This coverage can help protect you against loss, damage and liability claims in case of vehicle theft, vandalism, or an accident.
  • Employment practices liability coverage: Unless you're a solo practitioner, you may want to consider this coverage. It can help protect you against work-related legal claims by current or former workers.

To learn more about business insurance for your drug store or pharmacy, contact your business insurance agent.

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