Malpractice insurance, also called professional liability insurance, is a policy that covers a pharmacist against claims arising from alleged errors or omissions in professional practice — for example, a dispensing error, a missed drug interaction check, or an alleged failure to counsel a patient appropriately. If a patient or their representative brings a claim, the policy can help cover legal defense costs and any resulting settlement or judgment, generally up to the policy’s coverage limits.
Coverage can come from an employer’s policy, a personal individual policy, or both. Employer coverage often protects the employer’s interests as much as the individual pharmacist’s, which is why many pharmacists carry a personal policy as well, particularly if they work per diem, across multiple employers, or in states with different liability exposure.
Why it matters
A malpractice claim is a separate track from a board complaint, though the two can arise from the same underlying incident — a dispensing error might trigger both a patient lawsuit and a report to the Board of Pharmacy. Policy availability, cost, and typical coverage limits vary by state and by practice setting, and whether a given policy is adequate depends on individual circumstances that only an insurance professional or attorney can properly assess. This entry describes the concept generally rather than recommending any particular coverage level.
RxByState tracks state-specific compliance considerations pharmacists should be aware of — app.rxbystate.com/signup.