Why Insurance Is Essential for Your Small Pharmacy
Small, independent pharmacies are the backbone of their communities—trusted hubs for health, advice, and care. But with that trust comes responsibility, and with responsibility comes risk.
Whether it's a customer tripping and falling, a fire damaging your inventory, or a professional liability claim from dispensing the wrong medication, pharmacies face a wide range of exposures. Even if you don’t handle controlled substances like opioids, a simple dosage error can lead to devastating consequences. For example, a dosage mix-up with Phenergan resulted in a $1.4 million verdict due to lasting patient harm. Another case involving compounded medication for a child resulted in a $240,000 settlement.
The expanding role of pharmacists, especially in the wake of the COVID-19 vaccine rollout, means pharmacists are now more active in patient care than ever before. That also means they carry more liability. In fact, incorrect medications or dosages make up 63% of lawsuits against pharmacists. And privacy regulations like HIPAA add another layer of risk, with hefty penalties for mishandling patient data.
Insurance isn't just about legal defense—it’s about ensuring your business can survive a claim or regulatory issue. Key policies include:
- Professional Liability (Pharmacist E&O) – Covers legal costs for claims like dispensing errors.
- General Liability – Protects against trip and fall claims and other non-professional accidents.
- Workers' Compensation – Mandatory in most states for employee injury or illness.
- Property Insurance – Covers damage to your physical pharmacy location and inventory.
- Umbrella Coverage – Adds extra liability protection when claims exceed standard policy limits.
- Equipment Breakdown & Spoilage Insurance – Critical for pharmacies storing temperature-sensitive medications.
If you’re contracted with Medicare, Integra Partners, DMEPOS, or other industry bodies, insurance isn’t optional—it’s required.
At Serhey Davidson Corp, we specialize in pharmacy insurance nationwide and work with multiple carriers to tailor policies to your specific needs. With over 44,000 pharmacies in the U.S. employing more than a million people and generating over $500 billion annually, protecting your small pharmacy is not just smart—it’s essential.
Get covered, stay compliant, and protect the business your community depends on.
