Hiscox Launches Coverage Designed Specifically for Pharmacies

PRODUCT: Pharmacy industry-specific liability product

COMPANY: Hiscox USA

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through wholesale brokers appointed with Hiscox.

FOCUS: Imagine a retail pharmacy fills a prescription with 10 times the prescribed dosage of a blood thinner—all because a pharmacy tech makes an error inputting the order. Consequently, the patient experiences a fatal brain hemorrhage.

Or suppose a patient receives diabetes medication instead of anti-cholesterol medication and is rushed to the hospital after an adverse reaction.

Or picture a wrongful death claim filed against a physician and a pharmacy for failure to warn patients that medications prescribed by the physician and filled by the pharmacy are excessive and have numerous harmful interactions.

What happens if these scenarios actually take place? Enter Hiscox’s new coverage developed specifically for pharmacies. “Our new pharmacy-specific product is designed to address the industry’s growing need for customized insurance coverage,” explains Alicia Marsiglia, product head, Allied Healthcare, Hiscox USA.

Hiscox expects the product to complement existing tailored forms in allied health care, including ambulance and medical transportation, beauty salon and day spa, and home health care products.

“Allied health care is a growing industry, driven forward by the number of aging baby boomers, increased life expectancy, technology advances and health care reform,” Marsiglia says. “This new solution will further enhance our ability to help allied health care clients protect their businesses, while encouraging them to take smart risks and grow their businesses.”

UNDERWRITING: Coverage includes a $10 million limit capacity. A 50/50 hammer clause is available by default, and defense costs in addition to the limit are available via endorsement. Coverage also includes duty to defend, as well as claims-made and reporting coverage with an incident trigger.

Insureds include all non-physician employees—independent contractors, students and volunteers (including pharmacists)—as well as physicians employed or contracted to prescribe or order vaccinations. A waiver of retention is available for compounding and retail pharmacies following exemplary risk management standards.

Hiscox will pay up to the coverage part limit for damages and claim expenses in excess of the retention for covered claims alleging a negligent act, error or omission in pharmacy services performed on or after the retroactive date. This includes, but is not limited to, breach of any duty of care, including any duty to warn; bodily injury; or personal and advertising injury, provided the claim is first made during the policy period and is reported in accordance with policy conditions.

MINIMUM PREMIUM: $975.

TARGET: Pharmacy operations, such as retail, mail order, closed door, compounding, infusion, radio, veterinary and vaccination services, including pharmacies that offer wellness screening and testing services.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: Alicia Marsiglia, vice president, U.S. Allied Healthcare product head; Hiscox, 520 Madison Ave, 32^nd Floor, New York, NY 10022; 914-273-7428.

Ronimarie Acord is an IA contributor.