Online pharmacies are relatively new types of entities. They sell prescription and non-prescription medications to customers entirely online.
An online pharmacy will have many of the same risks as a traditional pharmacy: selling an unsafe medicine, making mistakes in filling prescriptions, medication spoilage, and losses to buildings and other physical assets (including all of the expensive medications on hand).
What’s more, you have some unique risks that revolve around your online business model.
That’s why you need a comprehensive business insurance program that covers your unique risks and protects you from large losses that could bankrupt you. A local independent insurance agent can help you find the online pharmacy insurance that fits your needs and budget.
Why Do You Need Online Pharmacy Insurance?
There are a number of things that can go wrong for your online pharmacy. You can face property losses in your facility. And you are at a very high risk for being sued if one of your customers suffers a negative consequence of ordering medication from you. You could seriously harm a customer by mislabeling a prescription bottle, filling a prescription with the wrong medication, or even unknowingly distributing a spoiled or otherwise tainted medication.
You need a customized online pharmacy insurance program to protect your business from the financial devastation these kinds of incidents can cause.
What Does Online Pharmacy Insurance Cover?
Online pharmacies need a package of customized business insurance policies designed specifically for online pharmacies. The policies and coverages included in that package will likely consist of the following.
- Pharmacy general liability insurance: While you don’t have customers on your premises, you likely have suppliers, vendors, and other people who come in contact with your operations. General liability insurance covers claims and lawsuits related to third party injuries and property damage on your premises.
- Product liability insurance: If your pharmacy sells a faulty product that causes illness or injury to a third party, your business may be named as a defendant in a liability lawsuit. This provides coverage for this type of situation.
- Commercial property insurance: This covers your physical pharmacy space, warehouse, and offices (and everything inside) if they’re damaged or destroyed by certain covered perils. These typically include fire, smoke, severe weather, vandalism, and more.
- Business interruption insurance: This provides continuation of income in the event that a covered disaster forces you to close for an extended period while repairs are made. It allows you to continue to pay employee salaries and monthly expenses until you can resume normal business operations.
- Commercial vehicle insurance: If your online pharmacy uses commercial vehicles (e.g., for deliveries), you need commercial auto insurance. It protects you against loss, damage, and liability claims related to your commercial vehicles.
- Druggist professional liability insurance: Pharmacists are licensed medical professionals. Druggists professional liability insurance, or errors and omissions insurance, can protect you from negligence claims and lawsuits that result due to pharmacist errors. This can include problems like mislabeled pill bottles, inaccurate customer consultations, failure to notice a drug interaction, or other problems unique to pharmacies.
Other Important Online Pharmacy Insurance
Most online pharmacies will need a variety of other customized insurance policies to avoid any gaps in coverage. It’s a good idea to discuss the following with your independent insurance agent.
- Equipment breakdown insurance: You may rely on computers and other specialized equipment to obtain customer information, keep medications at proper temperatures, and even to prepare certain medication compounds. If this equipment breaks down it can be costly. Equipment breakdown coverage can help you pay for repairing or replacing the damaged equipment. It may also reimburse you for any income lost due to vital equipment becoming damaged and unavailable.
- Computers and media coverage (also called electronic data processing coverage): Helps you pay to replace lost data and related lost income if your computers are damaged by a covered loss, such as theft, vandalism, viruses, or malware. It may also pay for physical damage to computers or hardware.
- Cyber liability insurance: Health-related businesses like pharmacies store confidential patient information in electronic files. Your customers are at risk for identity theft or fraud if criminals ever breach your system. You also sell products online, keep electronic records, and accept credit card payments. Cyber liability insurance helps you protect your business and your customers’ privacy by paying for investigative expenses, notification expenses (the cost to notify your customers of the breach), future credit card and fraud monitoring services for your customers, your legal defense, settlements and judgments, and even PR and other related expenses.
- Employee dishonesty coverage: Protects your pharmacy 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.
- Spoilage coverage: Provides compensation for medications that require refrigeration if an extended power outage renders them unusable.
- Worker’s compensation insurance: This coverage is required for most employers. It covers medical treatment for employee injuries sustained on the job. It also provides income replacement if an employee can not immediately return to work after a work-related illness or injury.
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How Much Does Online Pharmacy Insurance Cost?
The cost of online pharmacy insurance will vary depending on the coverage that you need as well as your unique risks. Your location, number of employees, and what you sell play a role in how much it will cost to insure your online pharmacy.
The more risk exposures you have (more employees, more than one location, more valuable inventory, several business-owned vehicles, etc.), the more you can expect to pay.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right online pharmacy insurance. They’ll walk you through the handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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