Pharmacists' Malpractice Insurance: Is It Mandatory?

Pharmacists are dedicated to putting their patients' health first, but they also need to look out for themselves. Pharmacists can make mistakes, and errors can occur in the busy, fast-paced environment of a pharmacy, where there is a high volume of prescriptions to fill. This is where professional liability insurance comes in. Pharmacists who are self-employed or perform contract work should definitely carry liability insurance because they have 100% legal liability. However, if you work for a hospital or retail store, your employer may already provide coverage against medical malpractice. Nevertheless, it's important to understand the limits of your employer's insurance, as it may not always protect individual employees or cover all the necessary areas. For this reason, many pharmacists are taking out their own professional liability insurance policies to ensure their best interests are served.

Self-employed pharmacists should carry malpractice insurance

Pharmacists are dedicated to putting their patients' health above all else. However, in order to take care of patients to the best of their ability, pharmacists must also look out for themselves. This is where malpractice insurance comes into play.

Professional liability insurance (also known as PLI) is insurance that protects professionals against negligence claims and other legal claims that could be brought by unsatisfied clients. While general liability insurance protects against claims for injury, illness, and property damage, it does not cover individuals working in specialized fields that could face claims of malpractice, negligence, or misrepresentation. For these cases, professional liability insurance is essential.

As a pharmacist, you perform your work under the potential threat of facing a lawsuit for medical malpractice. If a patient claims an actual or alleged error or omission within the scope of your practice, your professional liability insurance will cover legal expenses, medical expenses, settlements, and reimbursements, protecting you from significant financial responsibility.

The more independently you operate as a pharmacist, the greater the need for individual liability coverage. While your workplace may provide some degree of coverage, it's important to understand the limits of your employer's general liability insurance coverage. Employer coverage often extends to employees acting under their duties as defined by the employer, but it is designed to protect the business or organization, not the individual employee. Furthermore, employer coverage typically does not extend to activities unrelated directly to your employment with that institution.

For self-employed pharmacists, the benefits of carrying malpractice insurance are clear. With malpractice insurance, you can ensure that you have an insurance company that will prioritize your best interests at all times. You can work and use your best judgment without fear of legal repercussions. In the unfortunate event that you face a claim from a patient, you can rest assured that any ensuing action taken by your insurance company will serve your best interests, rather than those of your employer.

In conclusion, while the decision to carry malpractice insurance depends on your specific circumstances, self-employed pharmacists should strongly consider the benefits of this protection. By carrying malpractice insurance, self-employed pharmacists can safeguard their livelihood and reputation while gaining peace of mind to focus on providing the best possible care to their patients.

Pharmacists performing contract work should carry malpractice insurance

Pharmacists who are self-employed or perform contract work through agencies should carry malpractice insurance because they have 100% legal liability. In the event of a malpractice claim, the pharmacist will be held personally responsible, and their personal assets and future earnings could be at risk.

If a pharmacist works for a hospital, retail store, or other institution, they may not need professional liability insurance because their employer likely carries liability insurance for each pharmacist to provide coverage against medical malpractice. In this case, the pharmacist would be covered under their employer's insurance policy, but the attorney provided by the insurance company would work for the employer, not the pharmacist.

However, it's important to note that the employer's policy may focus on the employer's financial liability, leaving the pharmacist with little to no protection, depending on the damages incurred. Additionally, in the case of a complaint filed through the pharmacy board, the pharmacist may lose their license and would need to retain personal counsel for representation, which could be covered by their own professional liability insurance.

For these reasons, even when working for an employer with liability insurance, pharmacists may choose to take out their own professional liability insurance policies to ensure their individual interests are protected.

Pharmacist malpractice insurance offers liability protection against claims associated with mistakes or negligence, whether true or false, that result in bodily injury, medical expenses, or even claims of mental anguish or pain and suffering. It allows pharmacists to perform their daily responsibilities without fear of a potential lawsuit, as one mistake can have significant ramifications for the patient.

Pharmacists working for a hospital may not need malpractice insurance

Pharmacists working for a hospital may not need to purchase their own professional liability insurance, also known as malpractice insurance, as their employer may provide coverage. This insurance is designed to protect pharmacists in the event of a lawsuit being filed against them by a patient for an actual or alleged mistake, error, or omission. While pharmacists do not intend to cause harm to patients, the fast-paced and high-pressure environment they work in, coupled with the large volume of prescriptions, can lead to mistakes being made.

If a pharmacist is employed by a hospital, retail store, or other institution, their employer will likely carry liability insurance for each pharmacist, providing coverage against medical malpractice. In this case, the pharmacist would receive legal assistance through the insurance company, but the attorney would represent the employer, not the pharmacist. While the pharmacist may be discharged as a result of the suit, their actions would be covered under their employer's insurance policy.

However, it is important to note that employer-provided insurance may not always provide adequate protection for individual employees. This insurance primarily serves to protect the financial interests of the employer or organization and may not cover all scenarios, such as claims filed to the board of pharmacy. Therefore, it is advisable for pharmacists to consider purchasing their own individual liability insurance to ensure they have adequate protection in the event of a malpractice claim.

Ultimately, the decision to purchase malpractice insurance depends on various factors, including the level of independence in their role, the specific risks involved with their practice, and the extent of their employer's insurance coverage.

Retail pharmacies should have general liability insurance

Pharmacists are dedicated to putting their patients' health above all else. However, in order to provide the best care, it's important to also look after yourself. This is where professional liability insurance comes into play.

Professional liability insurance (PLI) protects professionals against negligence claims and other potential claims brought by unsatisfied clients. While general liability insurance is useful for individuals in many fields, it does not cover malpractice, negligence, or misrepresentation claims. For these cases, professional liability insurance is essential.

Retail pharmacies should hold several insurance policies, including a general liability policy, workers’ compensation, and more. General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

General liability insurance covers customer accidents and lawsuits that are commonplace when dealing with the public. This policy offers liability coverage related to:

• Customer property damage
• Damage caused by a product
• Advertising injuries

Retail pharmacies can also bundle general liability insurance with commercial property insurance in a business owner’s policy (BOP). A BOP often costs less than purchasing each policy separately.

Pharmacists should consider individual liability insurance

Pharmacists work in a fast-paced, high-pressure environment, dispensing a large volume of prescriptions. This environment, along with the evolving nature of pharmacy practice, means pharmacists are susceptible to making mistakes and errors. Individual liability insurance provides coverage for alleged or actual errors or omissions within the scope of a pharmacist's practice. It covers legal expenses, medical expenses, settlements, and reimbursements, protecting pharmacists from significant financial responsibility.

The level of coverage provided by employer-provided insurance varies, and it may not cover all the services that individual pharmacists provide, such as professional consultation, outreach, independent drug therapy, medication management, immunisation, or ambulatory care. Additionally, employer-provided insurance primarily protects the business or organisation, and may not extend to activities unrelated to the employment. For example, employer coverage may not apply when patients file claims with the board of pharmacy instead of taking legal action.

In the case of a lawsuit, employer-provided insurance may not adequately represent the interests of individual pharmacists. The attorney provided by the insurance company works for the employer, not the pharmacist. In workplace disputes involving other members of the healthcare team, individual pharmacists may find that their interests are not adequately represented without independent insurance protection.

Individual liability insurance ensures that pharmacists have their own insurance company that will prioritise their interests and provide them with dedicated legal representation. Pharmacists can safeguard their careers and protect their livelihoods and reputations by taking out their own professional liability policies.

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