Apothecary Shop Insurance

Apothecary Shop Insurance: How to Compound a Great Policy Package

(Don’t let a disaster bankrupt your business)

Apothecary Shop Insurance

Apothecary shops provide an alternative to today’s large chain pharmacies. These independently owned modern pharmacies feature a personal touch reminiscent of the old days when people would visit their local apothecary or chemist for medications and advice.

Most of today’s apothecary shops offer compounding services, immunizations, over-the-counter medications, natural healing products, medicine consultations, and home delivery services.

If you own an apothecary shop, you can protect the investment you have made in it by purchasing the right business insurance products. A local independent insurance agent can help you build a policy package that provides all the coverage you need at a competitive price. Contact an insurance agent near you to learn more.

What Could Go Wrong at an Apothecary Shop?

There are a number of things that can go wrong at a apothecary shop so it is important that you are property covered against all potential hazards. For example, how would your apothecary shop handle the repercussions if:

  • A customer slips on a wet floor while approaching the counter and suffers a hip fracture that requires surgery. The customer then sues your business for the cost of medical treatments, physical therapy, and lost wages.
  • An employee is using her personally owned vehicle to make a prescription delivery to a customer. On the way, she accidentally runs a red light and causes a collision that injures a family of four.  The employee’s car insurance does not cover the liability costs because the car was being driven for business at the time, and the injured family sues your business for medical costs.
  • A pharmacist accidentally mislabels a prescription bottle and a customer who takes the medications ends up in in the hospital with life-threatening complications. The family sues your business.

These are just some of the many risks you face as the owner of an apothecary business.

Distributing medications comes with a number of risks. Even a very small mistake can cause catastrophic health problems to your customers. For this reason, insurance companies began offering package policies for pharmacies and apothecary shops in the 1980’s. In fact, pharmacies are one of the first types of business to have industry-specific, custom-built insurance packages.

Get All the Property Coverage Your Apothecary Shop Needs

Your Commercial Property Insurance makes up a large portion of your assets. A catastrophic disaster like a fire or a tornado could mean the difference between profitability and bankruptcy for your apothecary shop. It is therefore important that you protect your business property with the right types of coverage. A local independent insurance agent will likely talk to you about:

  • Commercial property insurance: This is designed to cover all your commercially owned property including inventory, display cases, shelving units, computers, outdoor signs, and more. It is divided into two parts:
    • Building insurance: If you own the building in which your apothecary shop is housed, this can provide coverage for damage to its structure.
    • Contents insurance: This covers the property kept inside your store from loss or damage caused by covered events such as fire, severe weather, and theft.
  • Spoilage insurance: This can cover the cost to replace medications that require refrigeration in the event that an extended power outage renders them unusable.
  • Equipment breakdown insurance: Also known as boiler and machinery coverage, this provides compensation if equipment in your store, such as heating or cooling systems or your store’s computer system goes down and causes you to lose business while you are unable to remain open.

Apothecary Shops Need the Right Liability Coverage

A liability lawsuit can be financially devastating for your apothecary shop. Even if your store is found to be nonnegligent, the cost of your legal defense can be overwhelming. Fortunately, business liability insurance provides your shop with a financial safety net. Some coverage types you may want to discuss with your insurance agent include:

  • Druggist liability insurance: This is a form of professional liability insurance that is designed to protect your business from lawsuits brought on by pharmacist errors. This can include such things a mislabeled pill bottles, inaccurate customer consultations, failure to notice a dangerous drug interaction, or other problems unique to pharmacies.
  • Premises liability insurance: This is designed to protect your apothecary shop if a customer or visitor to your shop suffers property damage or injury due to an accident while on your business property.
  • Product liability insurance: This can provide coverage If your apothecary shop sells a faulty product that causes illness or injury to a third party, and your business is named as a defendant in a liability lawsuit.
  • Cyber liability insurance: Your apothecary shop likely keeps confidential patient records in a computer system. If that computer system is hacked and this information is leaked, your business may be sued by those who are affected. Additionally, hackers may steal credit card and insurance information and this can cause your business even more legal troubles. Cyber liability insurance provides coverage for this type of situation.
  • Employment practices liability insurance: This insurance is designed to provide coverage in the event that one of your current, former, or prospective employees sues your apothecary shop for breach of contract, wrongful termination, discrimination, or any other illegal business practice.

Talk to a local independent insurance agent to learn more about these another commercial liability products that may be a good fit for your apothecary shop.

Does Your Apothecary Shop Offer Delivery Services?

Many apothecary shops offer delivery services. If yours is among them, you will want to make sure that your business is properly covered against its liability risks if one of your drivers causes an accident while making a delivery. You may therefore need the coverage of one of the following:

  • Commercial vehicle insurance: This is required if your business owns its own delivery car that your employees use when making deliveries. It can provide your apothecary shop with sufficient liability coverage to prevent an accident from financially damaging your business.
  • Hired or non-owner vehicle car insurance: This coverage provides your business with liability coverage if your drivers use their own personal vehicles while making deliveries for your business.

Learn more about your commercial auto insurance coverage options by talking to a local independent insurance agent.

What Other Insurance Coverage Should You Consider for Your Apothecary Shop?

In addition to the property and liability coverage mentioned above, there are other insurance coverage types that may be required, or are at least worth considering. These include:

  • Workers’ compensation insurance: This coverage, which is required for most employers, covers medical treatments and lost wages for employees who sustain injuries on the job. It can also protect your business from a liability lawsuit pursuant to worker injuries and occupational illnesses.  A local independent agent can review your state’s workers’ compensation laws to ensure that your apothecary shop is in compliance.
  • Business interruption insurance: This coverage is designed to provide your apothecary shop with a continuation of income in the event that a covered disaster forces you to close shop for an extended period while repairs are made. That way you can continue to pay employee salaries, loan installments, and other regular monthly expenses until you can resume normal business operations.
  • Commercial flood insurance: Business insurance policies exclude coverage for losses sustained due to floods. To get this protection, you will need to add a commercial flood insurance policy to your portfolio. An independent agent can help you secure a flood insurance policy through the National Flood Insurance Program (NFIP). As the owner of an apothecary shop, you can purchase up to $500,000 in structural coverage and up to $500,000 in contents coverage.
  • Fidelity bonds: Also referred to as employee dishonesty insurance, this coverage is meant to protect your apothecary shop from financial losses in the event that one of your employees steals from your business or engages in other illegal practices while on the job.

Be sure to discuss your day-to-day operations with an independent agent who can identify your business coverage needs and recommend the insurance products that are appropriate for your particular apothecary shop.

Independent Agents Can Help You Build a Strong Apothecary Shop Insurance Portfolio

When you are ready to start building a comprehensive apothecary shop insurance portfolio, be sure to meet with a local independent agent. These experienced insurance professionals can identify and remedy any risks your business may face and can help you understand your various coverage options. They can then shop around to find the policies you want at competitive rates.

Best of all, you will be able to enjoy the convenience of having all your different policies housed under one roof. Find an insurance agent near you to learn more about apothecary shop insurance.

Why Getting Online Quotes Isn’t Always the Best Way to Shop

Getting your insurance quotes online can be tempting because it’s fast and easy. But are the quotes you are getting actually accurate? And are you getting quotes for all the different types of coverage your business needs?

Online quotes cannot give you the whole picture. They often leave you with unintended coverage gaps, which may result in you being unable to get compensation if something disastrous happens. Online quotes can also leave out cost-saving opportunities such as discounts and bundling opportunities that an independent agent can help you take advantage of. 

Instead of getting an online quote, find an independent insurance agent near you, and schedule a one-on-one consultation to discuss your options for the best coverage for your apothecary shop. 

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TrustedChoice.com Article | Reviewed by Paul Martin

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