Is Your Pharmacy Insurance A Competitive Disadvantage?

July 31, 2018

Running a modern-day pharmacy is a juggling act. Most pharmacists today offer a host of services in addition to dispensing drugs, and with advances in technology and healthcare, they’re interacting with patients in ways never imagined before.

For example, with the use of artificial intelligence and databases to conduct research and look at trends, pharmacists are increasingly able to better collaborate with patients, doctors, nurses, hospitals, and others to provide better care. Pharmacists are even using their studies of toxicology, poisons, and medicinal chemistry to expand their roles into the public health sector and government agencies, advising on such things as environmental health issues.

It’s an exciting time for the pharmacy industry. But it’s also an especially risky time.

With pharmacies performing a much broader role, the risks are growing exponentially. Some pharmacies are ready for those risks. However, others are not ready, placing them at a significant competitive disadvantage. Don’t let it happen to you. Be ready for anything with a complete and robust risk management strategy.

What do well-protected pharmacy owners do that others don’t?

1. They ask the right questions. Take careful account of your unique business operations and potential risks. Do you perform compounding? Do you offer delivery? How do you safeguard your customers’ private information? You can’t foresee every risk, but continual risk assessments of your business activities and services will keep you ahead of the game.

2. They understand today’s risks. Most lawsuits against pharmacists are because of wrong drugs or wrong dosages. But that’s just the tip of the iceberg when it comes to your financial risks. Others include: 

  • Professional liability claims from clients and employees

  • Medicine spoilage and/or loss of business income due to power outage

  • Theft or robbery of controlled substances

  • Auto accidents involving employees making deliveries

  • Cyber risks involving protected private health information

  • Competition from hospitals, HMOs, big chain pharmacies, and mail order firms that get high-volume discounts from drug makers

  • Managed healthcare arrangements that drive down the prices paid for prescription drugs

3. They get the right coverage. It doesn’t do much good to have insurance if it’s the wrong coverage. Every pharmacy business is unique, and in addition to your general liability policy, there are other types of coverage you may need, including:

  • Professional liability

  • Personal injury

  • Non-owned auto

  • Information privacy coverage (HIPAA)

  • Cyber liability

4. They understand their policies. The last thing you need is to find out too late that you’re not covered. Make sure every service you provide is covered, whether it’s pill dispensing, compounding, blood administration, working with nursing homes, or consulting, and take time to thoroughly understand what’s covered and what isn’t.

5. They partner with a professional. You’ve spent your career learning about running a pharmacy, not about insurance. Just like accountants, bookkeepers, and lawyers, insurance professionals have specialized knowledge that you likely don’t. Smart pharmacy owners partner with an insurance professional who can provide the expertise necessary to make sure all the bases are covered.

 

Ready to partner with an experienced insurance professional for your unique coverage needs? Call Heffernan Insurance Brokers today to learn about our Pharmacy Owners Insurance program