Pharmacists’ Professional Liability Insurance: Advantages
Professional Liability Insurance:
Pharmacists play a crucial role in the healthcare value chain by distributing drugs, compounding, vaccinating, and consulting with patients. Like every healthcare professional, pharmacists should manage professional liability exposures and take necessary actions to mitigate risks, especially given their liability insurance. Individual policies for pharmacists are likely to yield better coverage than the policies that are provided by the employer.
Pharmacy liability insurance Guide and Advantages
Increased pharmacist responsibilities: They are a double edged sword
The pharmacist’s role with the COVID-19 vaccine initiative provided pharmacies with a greater role in the healthcare value chain. For a segment of pharmacists, this shift is positive as they are now able to engage in vital patient care. This change is accompanied by a fair share of challenges as well. With greater responsibilities comes greater liability exposures. Thus, it is of utmost importance for pharmacists to avail individual professional liability insurance.
Pharmacists are not unfamiliar with facing legal allegations. Among the two most frequent allegations made against pharmacists, which account for 63% of legal action taken against them, accused pharmacists of giving the wrong medicine or wrong dosage.
The HPSO case studies suggest the following as some of the allegations pharmacists may encounter:
Counsel or refer failure to to auxiliary services under the pharmacist’s scope of practice. A pharmacist evaluates a patient suffering from a spider bite. The assessment led her to recommend and dispense two topical ointments. One of the ointments exacerbated the problem. The patient became eligible for hospital admission post which he stayed for 28 days where he was managed with intravenous antibiotics, multiple surgeries, and grafting of skin. The case settled for $280,000 which included both indemnity costs and legal fees.
Dosage error: A physician cancelling a prescription of Phenergan for a patient noted a 100 milligram Phenergan prescription filled by a pharmacist. The patient was, and still is, suffering from some physical implications with the most noticeable being continuous tinnitus.The prescription mistake resulted in a $1.4 million verdict.
Compounding error: A child diagnosed with hyperactivity and anxiety was on a regimen needed to be on multiple medication. A mistake of compounding two drugs led to thrice the amount of the primary medication, clonidine being added. The child not only took the medication, but audaciously, he endured a seizure (though, miraculously, survived). The case was settled for $240,000.
These case studies have highlighted some potential hazards related to pharmacy practice; however, there are other risks that have not been, and, will not be covered. While these scenarios may appear to be exaggerated, we are all capable of human error.
While you are likely to never encounter a claim like this, if this situation does arise, then having individual professional liability insurance could be valuable.
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The Advantages
Despite your employer having insurance, any claims filed against you will not be covered due to the employer insurance being limited to a corporate scope of coverage and lack sufficient coverage should a claim be filed against you.
An individual professional liability insurance policy could offer you some of these coverages:
1. Professional liability coverage
Provided that there is a legal liability in a covered medical incident, this type of coverage is able to reimburse the damages you are required to pay. It is clear from the examples provided earlier on that there are some claims that can be made and this coverage is to some extent inclusive of medical expenses for the injured claims up to some liability limit.
2. License protection
Pharmacists are required to hold a license in their respective state. Filing a complaint with the appropriate board may result in having to defend your license as well as your professional reputation. Your license defense policy may cover the legal costs.
3. Defense costs
The legal defense costs associated with covered claims will be reimbursed under your professional liability insurance, regardless of the outcome. These funds also provide the means to conduct investigations into the claims. These costs are also covered in addition to your liability limits.
4. Defendant expense benefit
Defendant expense benefit reimbursement for travel expenses, meals, lodging, or wages not received because of time spent in trials, hearings, or proceedings associated with a covered claim also applies.
5. Deposition representation
Your insurance policy may cover a portion of the attorney fees if you are subpoenaed in a case that involves professional services, in which you are not a defendant.
6. Information privacy coverage (HIPAA)
HIPAA dictates the boundaries pertaining to the privacy, confidentiality, and sensitive health information of a patient, as well as governs the misuse and unauthorized revelation of patient data.
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Pharmacy Liability Insurance – FAQs
What is pharmacy liability insurance?
Pharmacy liability insurance protects pharmacists and pharmacy owners against legal claims resulting from errors, negligence, or professional mistakes in dispensing medication.
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Do I really need liability insurance if I already have employer coverage?
Yes, personal liability insurance offers extra protection beyond what your employer provides. It helps cover you if you’re sued personally. -
What does pharmacy liability insurance typically cover?
It usually covers legal fees, settlements, and judgments for claims involving medication errors, wrong dosages, mislabeling, and patient harm. -
Is it only for pharmacists, or do pharmacy technicians need it too?
Both pharmacists and pharmacy technicians can benefit from individual liability insurance, especially if they’re practicing under their own license. -
What’s the difference between professional liability and general liability?
Professional liability covers mistakes related to your work (like giving the wrong drug), while general liability covers accidents like a customer slipping in your store. -
How much does pharmacy liability insurance cost?
The cost depends on your role, experience, claims history, and the amount of coverage, but average annual premiums can range from $100 to $500+ for individuals. -
Does it cover lawsuits from patients?
Yes, if a patient sues you for a mistake that caused harm, your liability insurance can help cover legal defense and settlement costs. -
Will it cover me if I give the wrong medication?
Yes, this is one of the most common types of claims, and pharmacy liability insurance is designed to protect you in such situations. -
Can it cover my pharmacy business, too?
Yes. There are business-specific policies that cover the pharmacy itself, employees, inventory, and even cyber liability. -
Does it protect me against claims from past jobs?
Only if your policy has “prior acts” coverage or if you had continuous coverage. Otherwise, it won’t cover incidents from previous employers. -
What if I work at multiple pharmacies? Am I still covered?
Many individual policies cover multiple locations, but you should confirm with your insurer. You may need to list all workplaces. -
Will liability insurance cover me if I volunteer at a clinic?
Some policies do, but it depends. You might need to add volunteer activities to your policy or get a special endorsement. -
How much coverage do I need?
Many pharmacists choose coverage limits like $1 million per incident and $3 million per year, but it depends on your risk level. -
Can pharmacy owners get coverage for employees too?
Yes. Business liability policies can cover staff pharmacists, techs, and even delivery drivers if included. -
Do pharmacy students need liability insurance?
Yes. Many pharmacy schools require students to carry liability coverage during internships or rotations. -
What happens if I’m falsely accused of an error?
Your insurance can still help. It will pay for your legal defense even if the claim turns out to be unfounded. -
Will it protect my license?
Some policies include license defense coverage, which helps pay for legal costs during state board investigations or disciplinary actions. -
What if someone sues for emotional distress, not injury?
If the claim is tied to a professional service error, some policies may still cover emotional harm or mental anguish. -
How do I file a claim on my liability insurance?
Call your insurer right away, provide documentation, and follow their instructions. A claims rep will guide you through the process. -
Where can I buy pharmacy liability insurance?
You can purchase it through specialty insurance providers, pharmacy associations, or online insurance marketplaces.