Inherent risks come from owning a business. As a pharmacy business owner, you have unique liabilities that require different levels of protection. Here are five things well-protected pharmacies do that put them ahead of other pharmacies.
1. They Have Heightened Cybersecurity
Pharmacists handle a lot of confidential information that can create a liability risk if lost, stolen, or mishandled. Well-protected pharmacies have higher physical and cybersecurity measures to offset this risk. While HIPAA compliance is a must for any pharmacy, compliance isn’t the end of the road for businesses.
Cybersecurity includes elements like strong password protections, multi-factor authentication, information security policies, data backups, strong firewalls, and standard data encryption.
2. They Properly Store And Destroy Medical Records
While cybersecurity is extremely important for all businesses, physical security is essential for pharmacies This includes implementing proper protocol when it comes to destroying confidential information.
Patient records are easier to store thanks to EHRs, but well-protected pharmacists stay on top of their record-keeping practices. They follow all federal guidelines and destroy paper and digital records once the retention period lapses. They also train staff to follow all recommended procedures.
3. They Understand Today’s Risks
Pharmacists today face lawsuits for a variety of liability concerns, including:
- Inaccurate storage, dosage, and dispensing of medication
- Claims from disgruntled customers or employees
- Power loss, which leads to loss of income and possibly loss of medication
- Theft or robbery of finances, data, and controlled substances
- Cyber attacks and loss of patient data
- Auto accident claims if you employ delivery drivers
The pandemic brings a new wave of risks for pharmacists, and the uncertainty means pharmacies need to stay aware to protect their employees.
Recent Lawsuits Against Pharmacies
Pharmacies face more risks than most business types. There have been many recent lawsuits filed by local, state, and federal governments against doctors and medical facilities because of the ongoing opioid crisis. Most suits claim that the healthcare provider somehow failed to follow due diligence regarding opioid abuse and trafficking. A federal judge warned pharmacies they are next.
CVS recently faced an antitrust lawsuit that claimed they overcharged customers for generic prescriptions. Even though jurors sided with CVS, such a large lawsuit led to expensive attorney fees.
Since these types of lawsuits are fairly common, it’s important to acknowledge the risks and prepare accordingly.
4. They Get The Right Insurance Coverage
While you can’t completely absolve yourself of liability, you can substantially protect yourself, your business, and your personal assets. Insurance coverage is arguably the easiest and most efficient protection.
Well-protected pharmacies have pharmacy business insurance. They have policies that cover nearly every type of risk, and they understand their coverage options.
Small business insurance needs vary, but most pharmacies require:
- Workers Compensation Insurance
- Commercial Auto Insurance
- General Liability Insurance
- Professional Liability Insurance
- Employment Practices Liability Insurance
- Cyber Insurance
There may be other coverage options available, too, depending on the unique needs of your pharmacy. You can read more in our guide to pharmacy business insurance.
5. They Partner With The Right Insurance Agency
Because you face many risks as a pharmacy owner, you need a close relationship with your insurance agent. Well-protected pharmacies partner with a great insurance agency so they can discuss the ins and outs of business and understand coverage options for pharmacy business insurance. A great insurance agency is like a risk mitigator; they know your risks, and they make sure you have protections in place to mitigate those risks.
Need help to secure your pharmacy against risks? Get in touch with Bethany Insurance. Our team of expert agents can help your pharmacy find the right small business insurance that gives you extra support and peace of mind.
