We, as Insurance Brokers are becoming increasingly concerned that owners of Pharmacies are not correctly insured. Many Pharmacists are of the incorrect and perhaps misguided understanding that if the pharmacist is insured, the policy covers activities of other members, employees, locums and General Liability in connection with the business of the Pharmacy.
Have you covered all angles with regard to Professional Indemnity Insurance?
There is a difference between Professional Indemnity for a Pharmacy and Professional Indemnity for a Pharmacist and Indemnity for Pharmacies is based on the assumption that each individual Pharmacist holds his own personal/individual Indemnity.
This is a requirement based on requirements outlined by the Pharmaceutical Council, and they would NOT consider this way of insuring to be insuring the same risk twice. The reason being that the pharmacist and the Pharmacy are two different entities needing their own specific cover.
If you would rather have cover in the name of the Pharmacy, including the liability of all the PERMANENT pharmacists under your employ, then the Underwriters will rerate the pharmacy to take into account the increased risk.
If you, the pharmacy owner feel that you do not want to include the individuals under your policy as it may affect your Loss ratio, each individual pharmacist should apply individually for their own policy. A proposal form would have to be completed and cover incepted in their own individual names, and the premiums paid for by the individual.
If you feel that you may currently be inadequately insured, please
Products Liability Our members and the Consumer Protection Act (From the ICPA) – a summary The new Consumer Protection Act (CPA) that was implemented earlier this year could have a twofold impact on ICPA members.
The CPA regulations offer a basis to tackle the challenges faced by the independent pharmacy sector. There are however also concerns about how the Act could have an impact on pharmacist’s liability.
ICPA Director Johann Kruger was recently informed about attorneys who have identified “ business opportunities” and are just waiting to nail to nail unsuspecting retailers with this new act on product liability.
Vulnerable areas in pharmacy products would be slimming and body building products, anti-ageing cosmetics and any other retail goods making unsustained claims and promises.
“We have enquired whether standard Indemnity Insurance will cover any CPA related liability claims” and very few pharmacists have taken up the extra cover that covers products liability.
We urge you to contact us and ensure that you have this most important cover included onto your existing policy.
Please Note that General Liability cover is also available under the Professional Indemnity Policy and/or under an Assets policy. This covers the propriety or business against Third Party claims for damage to property, death or injury occurring on the premises. Eg: a customer slipping on a wet floor.