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Liability Insurance FAQ
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Pharmacist Liability Insurance

Pharmacist liability insurance is designed to protect pharmacists who are facing lawsuits. In order to be covered in a lawsuit, the pharmacist must have already purchased coverage and have an active policy at the time the suit is filed. There is no compensation for a lawsuit that occurred before a policy was instated. This type of insurance is a form of professional liability insurance, meaning it covers negligent acts. Regular liability insurance doesn't, so it should not be confused with this type of coverage.

In recent years, pharmacists have gained much more responsibility in their scope of practice. They have evolved from workers who took order, packaged and counted medications, to providing some information to patients. Their role today is much more difficult and there is far more to learn about pharmaceuticals. With their increase of responsibility came an increase in lawsuits, warranting this necessary form of insurance.

Pharmacist Liability Insurance - What You Should Know 

At one time, a pharmacist wouldn't be held liable for bad information. Today, if a pharmacist tells a patient to do something that ends up causing that patient harm, the pharmacist can be sure of a lawsuit. For example, if the pharmacist told a patient it was acceptable to consume alcohol with a drug and the patient became ill and required hospitalization, the pharmacist could be fully liable for the patient's hospital care and possibly personal damages and mental anguish.

Since pharmacists are now considered to be the reliable experts on pharmaceuticals, it is essential to have coverage. Everyone makes mistakes at some point, so in this litigious society, pharmacists need to be sure their practice is covered. Pharmacist liability insurance companies may vary in what they cover and how much, depending on the state of residence.

Pharmacist Liability Insurance - Compensation

Each company compensates on a per-incident basis with a maximum allowed dollar amount. Policies usually have very definitive explanations of what is covered. Essentially, the pharmacist will be provided compensation for litigation expenses, travel expenses, personal or property damage to the injured party, mental anguish and license protection. In addition to this, some companies may offer accidental death insurance. Policies with this provision are usually considerably higher than others.

Pharmacist liability insurance isn't as expensive as most people believe it is. For less than $300 per year, pharmacists can obtain $3 million in coverage. Most of the coverage amounts listed are the aggregate amounts. There is usually a cap amount less than this that is awarded on a per-claim basis. If the aggregate amount is $3 million, the per-incident is likely $1 million. All pharmacists should have this vital protection.