Professional insurance for pharmacists

Pharmacists are at an increased risk of public liability due to complications with medication and have the added stress of having a premises that is often targeted by thieves. As a result, pharmacists and pharmacies are a bigger risk for insurers so not all companies will cover them.

Pharmacists’ special insurance needs

All pharmacists must have professional indemnity insurance to protects the policy holder from claims against their relating to their professional conduct and also help cover legal fees associated to any such claim.

It is a legal requirement in Australia that all healthcare professionals carry insurance. Without indemnity insurance, pharmacists are absolutely not allowed to practice. There are no exceptions to this rule and it is not possible for students to get cover – only in very rare situations. This is because you have to be a legally qualified medical professional to qualify for indemnity coverage.

As pharmacists require specialised insurance akin to the medical profession it is usually a specialist agency that provides this kind of cover – most of the major insurers will not insure pharmacists. With a limited number of insurers to choose from premiums tend to be higher. Some of the providers of Australian insurance include: the Medical Insurance Group (see www.miga.com.au), the Medical Indemnity Protection Society also offers advice (www.mips.com.au) or visit United Medical Protection at www.unitedmp.com.au

Financial considerations

To work out what the premium should be the business is assessed and the premium is then calculated. To work this out the factors taken into account include: the nature of the practice, number of employees, the state or territory the practice is located in, the experience level of the practice and the professionals working in it. A risk assessment will also be carried out – this may include location, demographics of the local area, any additional services offered (eg methodone counselling). Most insurers require payments to be made as a lump sum (other businesses can pay monthly or in instalments). If this causes a problem for your business you may be able to negotiate payment by instalments with your insurer if you set up a direct debit.

Although the insurer will advise you on a suitable level of coverage, the average required is around $2 million, up to around $20 million. Your policy will also probably attract and excess that varies from insurer to insurer and business to business. Excesses range from $2000 to $20,000.

More information for pharmacists

As with most things pharmacy related, the Pharmacy Guild of Australia provides outlines of standards and procedures as a resource for pharmacists and can provide advice. Their website is www.guild.org.au. For further independent advice or claims disputes or problems with your insurer you can also contact the insurance ombudsman on the web at www.insuranceombudsman.com.au or browse through the other resources available here at Insurance Buddy.