Things to consider when insuring your pharmacy

"Pharmacists are busy. They're dealing with increasing patient numbers, delivering increasing services, but still doing the daily dispensing role that they've always had to. So they're not really thinking about, what are my insurance requirements?"

As a pharmacy owner or dispenser, you're juggling a complicated business - and as Ian Smith, Head of Primary Care at Howden points out - the last thing you want to think about while you're busy - is your insurance.

But, whilst the demands have increased and your businesses have transformed in recent years, the options on the table for contractors' insurance, have remained the same. Luckily, we're happy to share that Howden are adding a new choice to the market - and now is a great time to assess your insurance.

Here's our simple guide to what you should be thinking about - to ensure that you find insurance that is fit for your future.

Choose a Provider with Pharmacy Expertise

More than most businesses, finding adequate insurance requires brokers with niche knowledge of pharmacy as a sector. You need to be able to know, quickly, that who you're chatting to knows the risks, whether from dispensing, services, staff, or day to day issues, and is then building cover bespoke to you.  

"You should be dealing with an insurer or broker who understands the sector you're in. Nobody likes buying insurance - but you want to know that you're working with someone who has experience and is careful in watching out for what could happen on your behalf."

Whilst there are more choices from insurers than there once were, the specificity of how pharmacy businesses operate, means that working with a business that has industry know-how makes sense.

With over 10 years experience in the sector, Ian knows the importance of working with pharmacies to ensure their cover is "fit for purpose".

"I've become really aware of the concerns of pharmacists and the growing clinical and business needs we have to provide for. As well as experience with indemnity, clinical, business insurance, I've also dealt with marketing, sales, underwriting claims and much more - and know that these needs will only grow."

Look at your options

Historically, pharmacists have had limited choices when it comes to insurance. Many community pharmacists have taken up memberships with groups just in order to ensure that they can access the insurance they need.

"Pharmacy is unique for insurance - in that historically, there's been one main insurer, and as a result that has not allowed pharmacists the choice that consumers in other sectors enjoy."

That's no longer the case though.

At a time when contractors are worried about upcoming rises in N.I. contributions and declining reimbursement, looking at options such as Howden, where reviewing the choice available to you makes sense.

"I've felt for many years now that pharmacists have not been given a fair choice in terms of what they do with their insurance offering. In these pressurised times, I'm pleased we can offer something to make their lives easier."

Explore Howden's pharmacy insurance options

Look for insurers with a broad commercial offering

Ten or fifteen years ago, simple cover for professional indemnity and other day to day aspects of a pharmacy may have worked for the majority of owners. But with the pressure to deliver services - to provide accessible care for the community and identify more ways of generating revenue, it means that there's a multitude of new potential risks.

It is worth your time when planning expansion to services, staffing, or even buying new robots, to talk to your broker about the insurance implications, and ensure you have cover that suits you. The questions that Ian says he hears the most are around services, but also are expanding to other questions too:

"Common things our customers are concerned about are vaccinations, independent prescribing, PGDs - but also, how am I covered if I use a third party like a locum or, increasing a remote prescribing service. Of course people ask about the risk aspects, but also will this cost me more money?"

It's key to work with someone who you can ask these questions, but who offers a wide commercial offering that has the answers when you do need cover.

Ian explains:

"As we offer a wide array of pharmacy and business insurance products, from indemnity all the way to cyber liability and everything in between, we're able to tailor insurance to suit you -  and you are able to combine different products  - with one simple renewal date."

Avoid Being Underinsured

With many pharmacy owners updating infrastructure like shop refitting, purchasing expensive dispensing robots, adding different technical equipment, new services to cover and with stock value changing rapidly - underinsurance is a risk for many busy pharmacists.

Underinsurance means that the amount of cover you have arranged doesn’t reflect the reality of what you actually have.

For example; you are covered for £20,000 of stock, but in reality you have £40,000 of stock at the time when you need to make a claim. Because you are effectively 50% underinsured, your insurer may only pay 50% of the claim. So a claim for £10,000 of damaged stock could see an insurance payment of only £5,000, leaving you hugely out of pocket.

Whilst you might think you are covered by existing insurance, when adding new services and working with third parties can mean varieties of risks that it's worth finding out about.

Working with an experienced insurer like Howden can help ensure you are covered comprehensively under one policy that can adapt to the changing needs of your business - whether for fleet insurance, buildings and contents, locums and more.

"I would say that if you're uncertain if you are covered, or want to understand if business changes would impact your insurance, then chat to us. Every pharmacy has a unique risk profile and we will work with you to create a bespoke solution."

Other ways Howden can help

As well as insurance for your pharmacy business, there are consumer products that Howden offer that add to the savings package for pharmacies. As well as offering pharmacies specific employee benefits such as group healthcare and risk benefits, they have a risk management programme that can support pharmacies.

"our risk management team can support by providing things like benchmark reviews to give your business a health check and highlight where reduction in risk is reasonable and cost-effective.

"We've got other areas where you could look to ensure your spend is right, commercial funding, residential funding, life and protection. All these could add up to significant savings for many pharmacies."

Tell Howden your renewal date