Insurance for the Compounding Business, Part 1: Who is Covered?

The practice of pharmacy was simpler in the past. Prior to the 1980s, pharmacists did not have to worry about "duty to warn" claims, or lawsuits for failure to adequately perform a prospective drug review, or claims that the pharmacist failed to counsel the patient adequately. In those earlier days, if a pharmacist put the right tablet in the bottle with the correct directions, there would be no claim or lawsuit. Occasionally, pharmacists would make a medication error. Putting the wrong pill in the bottle or mistyping the directions could result in serious injury and a significant claim for damages. But the number of errors was in keeping with the lower volume of prescriptions filled, and claims were relatively few. Today, community pharmacies fill over three billion presciptions annually. In keeping with that statistic, the number of claims against compounding pharmacists and pharmacies has, understandably, also increased. Not all insurance policies for pharmacy professional liability have kept up with the changes in pharmacy. With the divergence in pharmacy pracitices, coupled with the changes in pharmacists' duties and pharmacy law, the pharmnacist must read and understand insurance policies to be sure coverage is adequate. This article is intended to help pharmacy owners and pharmacists understand their needs and what to look for in their insurance policies.