Benefits of Membership: Professional Liability Insurance

BCPhA General membership includes Personal Professional Liability Insurance.

• Coverage that meets the College of Pharmacists of BC requirements of $2 million per occurrence and $4 million annual aggregate.
• Occurence-based coverage. This policy provides lifetime coverage for incidents that occurred while the policy was in effect, regardless of when the claim is filed.
• Portable coverage that will continue if you plan to eventually change employers, practice in multiple locations or provide advice even in a social setting.

Professional liability policies come in two different categories: occurrence-based and claims-made. When starting off with your career in pharmacy, it is important to understand how these insurance may affect you in the event you need to use it. 

The Personal Professional Liability Insurance you receive as a BCPhA General member is occurrence-based.

Occurrence-based insurance

Occurrence-based insurance, the insurance offered with membership with the BC Pharmacy Association, covers you during the policy term as long as the incident occurred within the policy term.

Advantages:

• The insurance is not limited by the claim date, which may occur months or years after the initial accident.
• The insurance would respond regardless of whether you have renewed your insurance. 
• Neither retroactive (prior acts) nor tail coverage is needed when terminating coverage.

Who will benefit from this coverage:

• If you work or plan to work at more than one pharmacy.
• If you have claims-made insurance through your employer and:
  • eventually plan to work at a different pharmacy group in the future.
  • provide professional advice in a social setting.
  • go on leave and your employer does not provide you insurance during your leave. 
• If you want insurance want lifetime coverage for incidents that occurred while the policy was in effect, regardless of when the claim is filed.

Claims-made insurance

Claims-made insurance covers you for claims past and present as long as premiums are paid to the insurance company. The insurance is limited by the claim date as the practitioner needs to ensure that the policy is active when the claim is made.  In BC, you will also need extended reporting period of at least 3 years as required by the College of Pharmacist of BC.

Advantages:

• Typically lower premiums.

Who will benefit from this coverage:

• If you do not plan to change your place of employment throughout your career.
• If you are not concerned of a claim against you after you retire.
• If you have a comprehensive plan as a large ownership group to self-insure through various risk management and financial management strategies.