Does Pharmacy Insurance Cover Both Public Liability and Products?

Caeva O'Callaghan | December 13th, 2023

Yes, it does. When you buy pharmacy insurance it will cover public liability as standard, and should also include products insurance.

For you to be liable in such a claim, the claimant must prove that you adjusted, or made up the product. Otherwise your insurance will not come into it.

In this article, we’ll answer questions such as:

  • What does pharmacy insurance cover?
  • What does public liability insurance include?
  • What products are covered by my pharmacy insurance?

Pharmacy insurance is a necessity if you run a business that deals with medications. It’s a specialised niche, so give us a call if you have any questions.

In a pharmacy, you’re dealing with sections of insurance that cover both medical as well as retail matters. But does pharmacy insurance cover your products, as well as public liability as standard?

What does pharmacy insurance cover?

Pharmacy insurance is a specialist type of policy that caters for a variety of businesses in this sector, including chemist insurance and dispensary insurance. This is a unique industry which comprises retail premises, regulatory fines, stock and contents, as well as a higher probability of third party injury. As such, getting specialised pharmacy insurance from a reputable provider will help make sure you’re covered for any eventuality.

Your pharmacy insurance policy will cover you for regulatory fines, stock and contents, cash and more. At a bare minimum, it should protect you against legal liability including third-party injury and damage to your pharmacy’s property.

Pharmacists are trained professionals who most likely operate out of high street retail premises. Your stock, products and staff will be different from other shops around you, and your business costs will likely be higher, especially for business interruption.

It’s important to be clear about what insurance you may need in the future, as well as your current needs. Pick up the phone and tell us about your pharmacy, and we’ll be happy to help.

What does public liability insurance include?

Public liability insurance protects your business in situations where you have accidentally brought harm to a third party or their property.

As a pharmacist or employee covered under the public liability section of your business’s policy, protection is provided against liability to pay sums or compensation arising from any claims while you are insured. Your insurance provider will help you cover legal defence costs as well as any expenses resulting from the investigation or settlement of claims.

Public liability is extremely important to have. If someone trips and falls inside your shop, this would cover you for the damages. If a wobbly display stand fell and a bottle smashed, leaking over their cashmere coat, your public liability insurance would cover the cost of dry cleaning or replacement.

Your retail insurance policy will also cover you for public and employers liability, which is essential for covering risks to your staff and to members of the public.

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.

Everybody makes mistakes, but in a pharmacist’s profession doing so comes with exceptionally high risks. That’s why having comprehensive pharmacy insurance is so important.

As for stock and contents, which includes any drugs kept in the fridge as well as cash, both in the till and overnight in the safe, that will all 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.

Talk to us with any of your pharmacy insurance questions?

If you have any questions about insuring your pharmacy and what you need to include on your policy, give us a call and our expert can help. We look forward to helping you protect your business.





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