Wednesday, October 4, 2023

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Protecting Your Pharmacy’s Reputation & Finances: A Guide for Owners

Pharmacies play a crucial role in providing accessible healthcare services to the public. As part of this essential service, pharmacists must maintain the highest standards of professionalism, ethics, and regulatory compliance to mitigate the risk of claims. Additionally, robust insurance coverage plays an important role in protecting pharmacies from claims related to misconduct, errors, or accidents within the premises. This article explores some of the most common types of claims, how those risks can be managed, and the insurance solutions that can limit the impact of claims.

Medication Claims

Pharmacists are responsible for ensuring the safety and efficacy of the medications they dispense to patients. If a patient experiences adverse effects or claims that the medication did not produce the desired results, it can lead to legal and ethical issues and medication claims. Pharmacists must maintain meticulous records and adhere to best practices to protect themselves and their patients such as storing medications at the correct temperature. From an insurance perspective, a strong Business Pack policy can help limit loss in the event of a fridge breakdown resulting in deterioration of stock – ensuring you have the correct coverage for mechanical and electrical breakdown along with adequate contents sums insured can often make the claims process more efficient.


Regulatory Compliance and Prescription Claims

Claims against pharmacies such as incorrect dosages, medication interactions, or dispensing the wrong medication altogether, can have serious consequences for patients and expose pharmacies to legal liability claims. Such mistakes underscore the importance of strict adherence to protocols and comprehensive record-keeping to prevent these types of claims.

Claims related to regulatory compliance can occur if a pharmacy fails to meet the standards set by the industry. For instance, dispensing a prescription medication without a valid prescription or not maintaining accurate records of prescription medications dispensed can result in penalties, license revocations, or criminal charges in severe cases. This highlights the critical need for pharmacies to stay up-to-date and comply with regulatory changes.

To limit the financial impact of these claims, pharmacies often turn to an insurance policy for Professional Indemnity paired with Statutory Liability. These policies provide liability coverage in the event of a breach of contract or a mistake resulting from professional services provided by the pharmacy or its team.


Next Steps

Robust insurance coverage is crucial for maintaining the reputation and the financial stability of pharmacies. While risk mitigation is important, sometimes claims can arise. By navigating these claims with a trusted broker, the Australian pharmacy industry can continue to provide quality healthcare services to the public.


To find out more, please reach out at any time.


Demi Tatham

Client Service Executive

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Honan Insurance Group Pty Ltd is now fully owned by Marsh Pty Ltd. To find out more, speak to your broker or read the announcement