Pharmacy Liability Insurance Michigan Policy Information
Pharmacy Liability Insurance Michigan. The role of pharmacies continues to expand, including providing consultations and vaccinations. With this expansion comes increased exposure for liability claims. In a recent claim study, the two most common allegations against pharmacies were wrong drug and wrong dose. Together, these two allegations comprised 75% of all lawsuits against pharmacies.
Drug stores sell prescriptions and over-the-counter medications to customers. Operations can range from the small pharmacy that only fills prescriptions, to retail stores that offer pharmacy services along with the sale of sundries, to huge super or discount drug stores that sell all varieties of general merchandise.
Pharmacy's can be locally owned, attached to and related to physicians' offices, clinics, or hospitals, or part of a regional or national chain or franchise. Medical supplies and equipment rentals may be part of the operations. Lunch counters or cafeterias may be on premises. Food items or snacks may be sold. Some will offer a variety of services that have little or no relationship to drug sales, such as cosmetic or beauty supplies or even beauty shops, shoe repair, or key duplication. Alcoholic beverages may be sold for off-premises consumption. Some may offer health care services, including sports physicals and the administration of vaccines.
Most pharmacy liability insurance Michigan policies are in the form of a Business Owners Policy (BOP). A BOP typically offers small businesses coverage for property and liability risks in one package.
Pharmacy liability insurance Michigan protects your store from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now..
Common Coverages For Pharmacy Business Insurance
Commercial General Liability - This coverage offers protection against the risks of running your pharmacy business. This provides protection against claims of bodily injury liability, property damage liability and even personal injury and advertising exposures for which your business may be liable. Slip-and-fall is a common type of claim.
Errors and Omissions Insurance - When running your MI pharmacy, it is important to consider the implications of other types of errors that can occur. Errors and omissions insurance - also known as professional liability can help provide you with the reassurance that you are covered for mistakes related to improper dosage or incorrect instructions with prescription drugs.
MI Business Auto - Commercial vehicle insurance is needed for your pharmacy if use any vehicles to run errands, pick up or drop off drugs or other good for sale.
Equipment Breakdown - Most MI pharmacies rely on computers and other specialized equipment to obtain details about their customers' medications and illnesses. If this equipment breaks down it can be costly in the form of suspended business operations as well as repair or replacement. A pharmacy liability insurance Michigan policy can protect you from having to shoulder those costs.
Employee Dishonesty - This protects your business from losses due to embezzlement, fraud and other forms of employee dishonesty. Because of the higher risks of addiction for certain opioid drugs, stolen prescription drugs are not a rare occurrence is pharmacies.
Data Breach - Because health-related businesses like pharmacies and drug stores must store a great deal of confidential patient information in electronic files, your customers could be at risk for identity theft or fraud if your system is ever penetrated by criminals. This pharmacy liability insurance Michigan coverage can reimburse you if you incur charges related to notifying your patients of a breach, offering them credit-monitoring services, recovering your own damaged electronic data and more.
How Does A Pharmacy Insurance Policy Work?
The aim of a pharmacy liability insurance Michigan policy is to ensure that if a claim is filed against you, you are protected - whether it be in court or at work. Some policies will cover attorney fees and other legal expenses, pay you for lost wages while taking time off work to defend yourself, and even offer reimbursement for licensing board issues.
What To Look For When Purchasing Drug Store Commercial Insurance
When purchasing a pharmacy liability insurance Michigan policy, people should always buy from an agent who understands and can explain all the details of the policy and is also familiar with the pharmacy business. Another thing to look for is who and what is insured under the policy. This is important as the pharmacy owner will want to know who exactly is insured under their policy and what they are covered against.
Michigan Drug Store's And Pharmacies' Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. Floor coverings must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. Extra care must be taken to provide adequate aisle space and waiting areas as some customers may be sick or have impaired mobility.
The rental of medical equipment can result in additional injuries to customers who already have health problems. Equipment must be inspected and maintained after each use. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the business is open after dark, there should be adequate lighting and appropriate security for the area. Personal injury exposure can arise from invasion of customers' privacy should confidential medical information be released to unauthorized sources.
There is also the exposure from apprehending and detaining suspected shoplifters. The use of closed-circuit camera systems prevents such incidents from evolving into a "he said, she said" situation. Employees must be trained to deal with all such delicate situations properly.
Products and professional exposure are tied together. The training, experience, background, and expertise of anyone handling and dispensing of drugs are very high concerns and need thorough review. Most states require that only health care professionals with appropriate credentials be permitted to issue prescriptions. However, recent legislation has opened prescription-writing to druggists in certain states, substantially increasing the exposure to loss in those states.
Some drugstores now offer limited health care services including screenings and the administrating of vaccines. If performed by an employee, proper licensure is required. If performed by a vendor, certificates of insurance showing professional liability are required.
If liquor is sold, employees must be trained to verify that customers are not underage and to recognize signs of intoxication.
Workers compensation exposure is due to lifting which can cause back injury, hernias, sprains, and strains, and from slips and falls. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Shelves should be easily accessible for storage. Stepladders should be available.
Housekeeping in storage areas is vital to prevent trips and falls. In any retail business, hold-ups are possible. Employees should be trained to respond in a prescribed manner. Cooking operations can result in cuts, slips, falls, and burns. Delivery drivers may be subject to robbery if they transport high value street drugs.
Property exposure may be low if ignition sources are limited to electrical wiring, heating and cooling equipment. Oxygen tanks can explode and should be kept away from heat sources. If there is food service, cooking equipment must be properly protected with fire extinguishers close at hand. If a fire should occur, the loss could be substantial as the FDA requires most drug and alcohol stocks exposed to fire or smoke to be destroyed due to the possibility of contamination.
Theft is a major exposure due to the amount of narcotics and other popular street drugs kept on hand, liquor and tobacco products. Individual items may be shoplifted. Appropriate security measures must be taken including physical barriers to prevent entrance after hours and an alarm system that reports directly to a central station or the police department.
Business interruption exposure can be high if alternative facilities are not available after a loss.
Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank statements. Receipting, inventory monitoring, and regular auditing are important.
Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made regularly to prevent a buildup of cash on the premises. Narcotics should be inaccessible to customers and non-pharmacy employees and under constant surveillance to reduce the possibility of inventory shortage.
Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises.
Business auto exposure may be limited to hired non-owned for employees running errands. If delivery services are provided, all employees driving vehicles must have valid licenses and acceptable MVRs. Vehicles must be regularly maintained with records kept.
How Do I Find Affordable MI Pharmacy Liability Insurance?
It's hard to set a baseline rate for pharmacy insurance because it's based on a variety of factors unique to you and your company. Things like security features, liability issues, and the services that you provide will make a difference in the coverage you need, which ultimately determines your premium. Researching options and collecting quotes is your best bet before you buy.
The pharmacy industry is rapidly changing and expanding. With new and challenging practice areas come a proportional increase in exposure to professional liabilities. Pharmacy insurance is designed to safeguard your livelihood, your business, and your peace of mind.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
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