pharmacy indemnity insurance

Why do we need a Pharmacists' Defence Association, are there not already a number of other organisations in pharmacy performing similar roles?

There is no other organisation that is specifically focused on looking after the interests of the individual employee or locum pharmacist in the community sector. The other community sector organisations are all focused on looking after the interests of employers and this is why the individual employee and locum pharmacists who now make up the vast majority of the profession in terms of number deserve to have this deficit addressed.

Was there not an attempt to set up an organisation called EPIC (Employee Pharmacists' in the Community) by the RPSGB some years ago?

Yes, but the initiative ran into difficulties mainly because of funding and infrastructure problems – the Association had to rely largely on voluntary efforts. The PDA has been established in an entirely different way with an initial grant of £100,000 which has been provided by the PIA Foundation. This means that from day one the PDA can be operated by a full time office staffed by pharmacists. Furthermore, any defence work that needs to be undertaken on behalf of members is underwritten by insurance and this can provide up to £5 million worth of support per member per incident.

What is the PIA Foundation?

The PIA Foundation was established in 1999 to enable a proportion of the proceeds of the business of the Pharmacy Insurance Agency to be invested back into the profession to help underpin professional developments. Then PIA Foundation receives 1% of every insurance premium paid by the many thousands of pharmacists covered by any of the PIA insurance schemes. The PDA has been established by a grant of £100,000 from the PIA Foundation enabling the PDA to operate as a not for profit company limited by guarantee.

What will happen to any profits made by the PDA?

The PDA has been established as a company limited by guarantee with no beneficial shareholders an no-one entitled to any profits. The PDA will be operated as a not for profit organisation, with all its income spent on providing benefits for members.

Why is insurance such an important part of what is being offered?

Insurance is essential to the service provided by the PDA. It provides huge financial capacity to enable the PDA to defend your reputation which goes way beyond any membership premiums paid. The Legal Defence Costs insurance can provide up to £500,000 worth of Legal Representation per member per incident and the Professional Indemnity insurance can provide up to £5 million pounds worth of protection to help defend and ultimately settle any claims for compensation per member per incident. In addition to this, the insurance helps to finance the PDA because it funds the grant from the PIA Foundation.

How do the Pharmacists' Defence Association (PDA) and the Pharmacy Insurance Agency (PIA) differ?

PDA is a non-profit making organisation, funded by a PIA Foundation grant. The many services provided by the PDA such as providing an Advisory Board, commissioning an active research agenda, focus groups and lobbying and influencing where necessary to pursue the individual pharmacist agenda, sit alongside the comprehensive insurance provided by the PIA. As such, the PDA is a Defence Association and the PIA arranges the insurance.

Together, this combination provides a potent and formidable service for individual pharmacists, which ensures that we truly can deliver on our main aim, which is defending you reputation.

What is the difference between the PDA and the NPA?

The NPA is an association historically dedicated to looking after the interests of Pharmacist Owners and Contractors – in other words, employers. The PDA is a new organisation inspired by the fact that there is no organisation that solely looks after the interests of individual community pharmacists, or employees.

Why should I need my own Professional Indemnity cover if I am an employee or a locum working in an NPA member's pharmacy, or a pharmacy that has its own Professional Indemnity?

Many employee pharmacists and locums working in NPA member pharmacies are led to believe that they do not need their own insurance because they are covered by their employer's insurer.

This is an over simplification, because if the employer's Association is in control of the situation in the event of a serious problem, then this potentially puts the employee and locum pharmacists at a disadvantage should they wish to defend their own reputation.

The NPA clearly articulates this dilemma when it states

"Where a conflict arises [between the employer and employee/locum] the Association's 'allegiance' must lie primarily with the member - the owner of the business."

What is the point of giving a discount to pharmacists who are involved in CPD?

We take seriously our responsibility for providing you with the tools and encouragement to pursue the Profession's goals of Continuing Professional Development. We have persuaded underwriters that pharmacists who invest in their continuing education prove to be less of an insurance risk. To demonstrate our commitment to this ethos, we offer pharmacists who have undertaken CPD for a minimum of thirty hours per annum, and have been on the register for more than twelve months, a discounted Full membership fee as indicated on the application form.

How do I know if I have the right Insurance cover for my role?

It is important that you get the right level of cover for the work you are undertaking. Different roles carry a variety of risks and therefore attract higher or lower premiums. There have been situations in the past where cover has been invalidated due to pharmacists changing their role and not seeking a review of cover. This typically occurs where a pharmacist has agreed to spend a day in a doctor's surgery giving advice or getting involved in medication reviews etc. If you change your role speak to our Membership Department on 0121 264 7000 or visit the POLICY WIZARD link to check that you have the cover that is most appropriate to your current role.

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