What Are The Key Conditions Applicable To A Typical Pharmacy Insurance Policy?

Caeva O'Callaghan | February 7th, 2024

You might be aware that there are certain conditions your pharmacy business must meet to qualify for insurance. But does the same apply for pharmacy insurance?

Yes. As with all insurance products, a pharmacy insurance policy comes with certain conditions you need to adhere to as long as you want your cover to remain valid.

Most of these are common sense. For example, it’s common sense that you pay your premiums, otherwise you won’t be covered by your insurance. Others may be less obvious.

In this article, we’ll discuss:

  • Do I need to read my policy document?
  • Can I get insured if I have a liquidated company?
  • What are the other conditions of pharmacy insurance?

These conditions are a binding contract between you and your insurer, and like with any other contract, you need to uphold your end of the bargain

Do I need to read my policy document?

Never assume you’ll be comfortable with all the conditions set out by your insurance provider, as many pharmacy insurance providers vary widely on the kinds of cover they offer. Make sure you read your policy thoroughly before you sign.

This will help you both spot potential issues that could delay or sabotage a claim made down the road. For example, if only you had been aware of something in your policy which affected a business activity you were to undertake, you may have acted differently and thus wouldn’t have needed to claim.

When you get your policy document, always read it thoroughly before adding your signature. You’lll be bound by the conditions of the policy as soon as you sign it. If you’re confused about the terminology or conditions laid out, ask your provider for clarification.

Better yet, give us a call here at OCI.ie. Our pharmacy insurance experts can translate even the most complex policies into plain language, so you can rest assured you have all the necessary cover in place without paying for cover you won’t use.

Can I get insured if I have a liquidated company?

To get a quotation based on standard terms, ideally you should be claims free in the past five years and have no previously liquidated companies or criminal convictions.

If you have a criminal conviction or have liquidated a pharmacy or other business in the past, it won’t be impossible to get insurance, just a bit more difficult. Give us a call and we will be able to get you quotations.

Be warned: these specialist quotations will likely be more expensive than the standard rates that would apply if you had no prior convictions or liquidated companies. How much more depends on the severity of the claim, your convictions, and the circumstances of the liquidation.

For example, have you been a director of one liquidated company or three? The number of companies would affect the cost of your insurance for your next pharmacy business.

What are the other conditions of pharmacy insurance?

Your pharmacy insurance policy will also contain conditions that you may be used to seeing in other insurance documents. For instance, the section about alteration of risk.

This section sets out that if you change the level of risk too much, your insurance will not cover you. It counts as insurance fraud to deliberately hide information or lie to your insurer to lower your premiums, and it never works out in your favour. Changing the risk includes a change of occupation on the property, when your pharmacy is wound up or discontinued, where the risk of loss, damage, accident or liability is increased, and of course if the policy is removed.

You must also never act in a fraudulent way. Not only does this include lying about the stock and products you handle in your pharmacy, but also making false claims about damage or loss, claiming for damage you inflicted yourself in order to get insurance money, and supplying forged documents to your insurance provider.

If you have signed the policy and later decide that it’s not right for you, then you have fourteen days – a “cooling-off period” – to cancel without any penalty.

Wondering about pharmacy insurance? We can help clear things up for you. Give us a call today and our pharmacy insurance experts can help walk you through what you need.





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