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Pharmacy liability and indemnity insurance

Protect your business with comprehensive pharmacy insurance – arranged by our dedicated pharmacy brokers.

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What is pharmacy insurance?

Pharmacy insurance is a business insurance package designed to cover pharmacies’ key risk exposures.

Errors and omissions made while giving health-related advice dispensing medication are prominent risks for pharmacists and pharmacies, which is why professional indemnity cover is crucial. But a comprehensive pharmacy insurance policy will also include property insurance and business interruption insurance to cover theft, property damage and loss of revenue due to a forced closure.

See your policy wording for a list of inclusions and exclusions specific to your pharmacy insurance policy.

What kinds of pharmacy insurance do I need?

Commercial property insurance

Your property is your responsibility – but mishaps don’t have to cost you. Let us help protect your assets with personalised cover.

Business interruption insurance

A storm, cyber attack or machinery breakdown can cause your fridge stock to spoil and grind your business to a halt. Arrange business interruption cover to keep things moving.

Public liability insurance

Help protect your business against third-party accidents and costly legal fees. Let us arrange the right cover for your needs.

Professional indemnity insurance

Protect your business against claims of misleading advice, breach of duty and negligence with professional indemnity cover.

Cyber insurance

As the use of prescriptions and MyHealth records increases, ensuring data protection and self-reporting becomes crucial for pharmacies. In the event of a cyber incident, having cyber insurance will provide support and assistance.

Management liability

Pharmacists often manage multiple stores and may have junior partners. By making well-informed choices, minimise the risk of adverse consequences and protect from potential liability claims.

Why should I consider pharmacy insurance?

Pharmacies are increasingly enhancing their professional service offerings. While this might be good for business and your customers, expanding your services may also expand your risk profile.

For example, some states now allow pharmacies to prescribe antibiotics for uncomplicated urinary tract infections. This could increase your risk of claims due to negligence or misdiagnosis.

Are you thinking about expanding your services? You don’t need to navigate your insurance needs alone. We can arrange a pharmacy insurance policy tailored to your unique risk exposures.

Examples of expanded professional services

  • Supply prescription medicines
  • Vaccinations
  • Advice on over-the-counter (OTC) medicines
  • Advice on generic (non-name brand) medicines
  • Compound (prepare) a medicine
  • Medication management
  • Home medicines review
  • Medicine and supplies delivery
  • Medical certificates

Why Marsh?

Why should you choose Marsh to arrange your pharmacy insurance solutions?

Tailored advice

We’ve been working with pharmacies across Australia for over 35 years. With access to industry data and insights, our experts are best placed to help you understand and assess your pharmacy’s unique risks – and find a cover that suits your needs.

Flexible policy

Thinking about offering new professional services? We make it easy for pharmacies to expand their service capabilities without arranging a new policy altogether. Our flexible pharmacy insurance solutions are tailored to your individual business.

AHPRA compliant

We stay abreast of AHPRA’s registration requirements for pharmacists and pharmacy owners – ensuring our pharmacy professional indemnity solutions help you stay amply covered for claims due to medication errors, dispensing mistakes, and more.

Why use a broker?

Choosing pharmacy business insurance means navigating through products, coverages and policy terminology – with a sales pitch as your only guide. An experienced broker can spot your unique set of risks, match you to the right choice, and advocate for you on price.

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Frequently asked questions

The cost of your business insurance depends on a few factors. These can include the:

  •  Size of your business
  • Size of your workforce
  • Type of business activities you carry out 
  • Property you want to insure 
  • Location you operate from.

Your insurer will also consider your fire and security protections, plus any claims history if you’ve had insurance before.

You can also obtain quotes that have a higher excess amount. This can provide some premium savings.

Discuss all these factors in-depth with your Marsh advisor. 

We strongly recommend that pharmacists consider professional indemnity insurance. Why? Because one of your customers could make a claim against you if they suffer a financial loss while acting on your medical or pharmaceutical advice. This could result in costly legal fees and a demand for compensation.

By providing comprehensive financial cover, professional indemnity insurance can help keep your pharmacy afloat in the event of a claim.

In the pharmacy trade, pharmacy malpractice insurance and professional indemnity insurance refer to the same form of cover. We strongly recommend taking out a professional indemnity policy to cover claims made against you due to pharmacy malpractice – like medication errors and dispensing mistakes.

Yes we can provide a commercial fleet cover which protects any staff who drive the delivery car. 

There’s no legal requirement to have pharmacy insurance in Australia. However, pharmacists are required by AHPRA – the peak industry body for Australian health practitioners – to have pharmacist indemnity insurance with a minimum of $20 million in coverage. Our pharmacy insurance package meets AHPRA requirements. 

With their access to sensitive patient information and increasing reliance on digital technology, pharmacies are a valuable target for cybercriminals. And a report by the Australian Signals Directorate found that a cyber attack costs small businesses $46,000 on average.

Given the high stakes for your business and your customers’ privacy, we highly recommend cybersecurity insurance for pharmacy owners.

It’s wise to inform your broker of any changes to your business structure, including expanding or contracting the scope of your services and changes in business revenue. 

If we’re kept in the loop, we can check whether your policy still covers your new service offerings. We may even be able to reduce your premium if your business revenue decreases.

LCPA 24/359

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“MAI”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer.

This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from MAI on request. MAI makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors.

The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.