Starting a Pharmacy? Here are the Top Insurance Covers You Need
One of the crucial steps in starting any business is securing it from potential financial losses. A sure way of exposing your new pharmacy to immense losses is going in without insurance. Potential lawsuits and damage payments to members of the public can send your company on its knees within the first few months of inception. Luckily, you can avoid this by purchasing the right insurance for your business. Here are the top covers that will effectively protect you from losses associated with legal suits.
General Liability Cover
If you interact with or invite members of the public into your business premises, you need a general liability cover. This insurance covers medical expenses, legal costs and other expenses associated with bodily injuries and property damage. For example, if someone slips and falls on wet floors in your pharmacy, the insurance company will pay for their medical expenses. If you do deliveries, your vehicle may accidentally damage property belonging to customers or third parties. In this case, the policy will cover the costs.
When buying general liability insurance, make sure you get enough of it. Below are a few factors to help you determine how much coverage you need:
- Size and location of your business
- Number of employees
- Business structure
Work with an insurance expert to help you determine how much coverage will be enough to protect your business against general liability claims.
Professional Indemnity Insurance
As a professional in the pharmaceutical industry, you're bound to give out professional advice here and there. If someone comes in with severe acne, then you recommend the best medication to treat it. If another person walks in with stomach issues, you prescribe something that will help. But what if your advice worsens the situation? For example, you may advise someone with a bad tummy to take certain meds, with no knowledge that they have stomach ulcers or GERD. If the medication makes the situation worse, you can get sued for giving misleading professional advice.
Professional indemnity insurance covers you against such cases. If someone sues you, your insurer will cover the legal costs. If you're found guilty, your cover will pay for the damages resulting from the case. Without this cover, you may end up using personal finances or business money to pay for the expenses, and this can severely hurt your business.
Product Liability Insurance
While you may be doing your best to provide clients with safe and effective medication, there's always a chance that the drugs could hurt someone. They may worsen the condition or cause other complications. In this case, your pharmacy may be sued for dispensing the medication. Product liability insurance will cover any damages resulting from harm caused to customers by using the products you sell.
As you start a pharmacy business, approach a pharmacy insurance professional who can help you get a suitable policy.
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