PHARMACY INSURANCE CASE STUDY
Medication Packing Facility Serving Pharmacies, Public Liability Placed After Five Declines
A facility that receives medications from pharmacies and packs them for patients is not a pharmacy and not a manufacturer, and business pack insurers struggled to place it. Five declined the liability. One quoted.
THE SITUATION
A medication packaging facility in Sydney, operating as a tenant and working with pharmacies to receive and pack patients' medications, needed public liability and a business insurance program quickly. The occupation sits between pharmacy and light manufacturing.
OUR APPROACH
- Public liability went to the business pack market. In the first round two insurers declined on the revenue amount, three declined outright, and one quoted at approximately $4,100.
- The property and business interruption program was taken to the specialist market separately, with several underwriting agencies declining as outside appetite or below their minimum values and several referring the risk for review on a full proposal.
- The urgency was managed by running both tracks at once so the liability was placed while the property program continued.
THE CHALLENGES
An occupation that does not fit an insurer's list can be declined on the label alone. Medication packing is neither dispensing nor manufacturing, and each insurer read it differently. Presenting the process, what comes in, what is done to it and what goes out, was the only way to get a considered answer rather than an occupation decline.
THE OUTCOME
Public liability was placed with QBE at a premium of approximately $4,100 a year, with the property program pursued through the specialist market in parallel.
Final Solution: Public liability for a medication packing facility at around $4,100 a year after five declines, with the liability placed while the property placement continued.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our pharmacy insurance guide and the public liability insurance brokers page.
PHARMACY SERVICES QUESTIONS
What this placement answers for other pharmacy-adjacent businesses
What insurance does a medication packing business need?
Why did insurers decline a medication packing facility?
Can liability be placed before the property cover is finalised?
PHARMACY INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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