Are Drugs Stored In A Fridge Covered Under A Typical Pharmacy Insurance Policy?

Caeva O'Callaghan | November 7th, 2023

Your pharmacy is covered for break-ins and accidents, but are the drugs in your fridge insured?

They will be covered under your retail pharmacy policy. The level of cover you have depends on your individual policy.

A retail pharmacy policy covers the physical building and contents that your pharmacy operates with. You’ll need a retail policy to cover medicines and drugs stored on your premises.

In this article, we’ll cover the following questions:

In a pharmacy, you’re dealing with sections of insurance that cover both medical as well as retail matters. It’s a niche area of insurance, so give us a call if you have any questions.

What does pharmacy insurance cover?

Pharmacy insurance is made up of protections which are tailored to the specific risks you face in your line of work, such as liability cover with property damage, legal assistance and more, depending on your needs.

Pharmacy insurance is a specialist type of policy, tailored to businesses in this sector. When you operate a pharmacy, you have access to specialist products such as chemist insurance and dispensary insurance.

Pharmacists are trained professionals who often operate in retail premises. This makes your pharmacy different from the other shops around you, and your business costs will be higher, especially for business interruption.

It’s important to be clear about what insurance you need, so that you avoid being overinsured or underinsured. If you’re not sure about pharmacy insurance, give us a call and we’ll be happy to talk to you about it.

What products are covered by my pharmacy insurance?

The products you sell in your shop are all manufactured by other companies. These companies will have their own products liability cover and it is most likely that if something was wrong with the product, the affected party would be compensated via the manufacturer. If this happens, simply call your insurance and they will pursue the claim with the manufacturer.

If one of your dispensers gives out the wrong medicine however, you would need professional indemnity cover on your policy. It’s a section you should absolutely consider getting, as it may save your business if a disaster occurs. If you dispense the wrong medicine or dose, this is how you would make a claim.

Most of the pharmacies insured with us are with Axa. At OCI, we have negotiated a special feature with Axa for €22K of drugs contained in fridges. RSA, on the other hand, limit their cover to only €1500 per refrigerated unit.

As for stock and contents, including cash both in the till and kept overnight in the safe, all of that will have cover as well.

It’s well worth knowing that your insurer may be able to allow for a seasonal increase in contents, for example during winter months, when demand for cold and flu remedies rise.

Does pharmacy insurance cover adverse reactions to OTC medicine?

Yes. If you accidentally dispense the wrong medication or the wrong dose, your professional indemnity policy will take over the defense of the case as well as any compensation awarded to your customer.

If you have a standard pharmacy insurance policy, it will not cover professional indemnity as standard. In fact, most retail policies specifically exclude dispensing risk. Having a separate professional indemnity policy plugs up this gap and makes sure you’re operating safely.

On the other hand, products cover will protect you against claims made by somebody who is injured, made ill, or has their property damaged by a product that is sold by your pharmacy.

Do you have questions about pharmacy insurance? Give us a call, and our experts will give you all the information you need to choose the right policy for your business.





All Information in this post is accurate as of the date of publishing.