Are 1099 or Relief Pharmacists Covered by Liability Insurance?

Working as a relief pharmacist can offer something many pharmacists value: flexibility.

You may cover a few shifts for an independent pharmacy, fill in while an owner is on vacation, work through a staffing company, or provide services to several different pharmacies throughout the year.

But there's an insurance question that can easily get overlooked:

If you're working as a 1099 or relief pharmacist and something goes wrong, whose professional liability insurance protects you?

The pharmacy's?

The staffing company's?

Your own?

The answer isn't something I would assume.

If you're working as an independent contractor rather than a traditional W-2 employee, your insurance situation can be different, and it's worth understanding before you step behind the counter.

Being a 1099 Pharmacist Matters

A pharmacist working as a W-2 employee and a pharmacist working as an independent contractor may perform essentially the same professional duties.

From an insurance standpoint, however, they aren't necessarily the same.

Employer professional liability programs frequently provide some protection for employees acting within the scope of their employment. But a 1099 pharmacist generally isn't an employee.

That distinction can matter when determining who qualifies as an insured under a pharmacy's professional liability policy.

In fact, insurance programs designed specifically for pharmacists may classify self-employed relief and independent-contractor pharmacists separately from employed pharmacists. Pharmacists Mutual specifically identifies self-employed relief and independent-contractor pharmacists receiving 1099 income as their own classification.

So if you're picking up relief shifts, don't automatically assume:

“I'm working inside their pharmacy, so their insurance covers me.”

It might.

But that's a question you want answered by the actual policy, not an assumption.

What If the Pharmacy Says You're Covered?

That's certainly reassuring, but I'd ask one more question:

Covered for what?

There is a difference between the pharmacy having insurance that protects the business from liability arising from your work and having coverage that specifically protects you as an individual pharmacist.

Those interests can overlap, but they aren't necessarily identical.

ASHP has similarly cautioned employed pharmacists that an employer's professional liability coverage primarily protects the institution and may not provide the individual pharmacist with the same protection as a standalone policy.

For a 1099 pharmacist, I'd want even more clarity.

Ask whether the pharmacy's policy specifically includes:

• Independent contractors
• Relief pharmacists
• Temporary pharmacists
• Per-diem pharmacists
• Contract pharmacists

And don't stop at the liability limit.

I'd also want to understand whether the protection includes defense of your individual pharmacist license if a complaint is made to the Board of Pharmacy.

A Lawsuit Isn't the Only Thing That Can Affect You

This is one of the reasons I talk so much about license defense with pharmacists.

Imagine you're covering a shift at an unfamiliar pharmacy.

A dispensing error occurs.

The patient makes a claim against the pharmacy, but they also file a complaint with the state Board of Pharmacy naming you as the pharmacist involved.

Those are two different problems.

The pharmacy has a business to protect.

You have a professional license to protect.

Even when an employer or contracting pharmacy has professional liability insurance, you should understand whether and to what extent that policy provides defense or reimbursement for a licensing-board proceeding involving you personally.

Individual pharmacist professional liability products commonly highlight license-defense coverage as a separate benefit for exactly this reason.

What If You Work at Several Pharmacies?

This is where the question becomes even more important.

Suppose you have a full-time pharmacist position but occasionally pick up relief shifts elsewhere.

Or maybe you're entirely self-employed and work at four or five independent pharmacies throughout the year.

You don't want your professional protection changing every time you walk through a different pharmacy's door without knowing it.

For example:

• Monday: Pharmacy A's policy may include independent contractors.
• Wednesday: Pharmacy B's policy may only cover employees.
• Saturday: You're working through a staffing company that has its own insurance arrangement.

You could be doing essentially the same work at all three locations while the insurance protecting you is completely different.

That's one reason an individual professional liability policy can be worth considering for pharmacists who regularly work independently or in multiple locations.

What About a Staffing Agency?

If a staffing company places you at a pharmacy, ask the same questions.

Don't simply assume that because there's an agency between you and the pharmacy, someone must have you covered.

Find out:

Who provides the professional liability insurance?

Then ask whether that coverage protects you individually for the professional services you're performing.

Your contract may also require you to maintain your own professional liability insurance. Some independent-contractor agreements expressly require the pharmacist to furnish proof of liability coverage.

That's something you should know before accepting the assignment, not after a claim.

Should Every Relief Pharmacist Carry Their Own Policy?

I wouldn't make a blanket coverage recommendation without knowing the pharmacist's situation and reviewing the applicable insurance.

But I do think every relief or 1099 pharmacist should be able to answer a very simple question:

“If I'm personally named in a professional liability claim or Board of Pharmacy proceeding arising from one of my relief shifts, what policy is protecting me?”

If you don't know the answer, that's worth fixing.

An individual policy can potentially provide a layer of protection centered on you, rather than depending entirely on the insurance arrangements of every pharmacy where you happen to work.

But like any insurance policy, the details matter. You still need to understand the covered activities, limits, exclusions, license-defense provisions, territory, and other policy terms.

Five Questions I'd Ask Before Your Next Relief Shift

If you're working as a relief, contract, or 1099 pharmacist, I'd want answers to these questions:

1. Does the pharmacy's professional liability policy specifically cover independent or relief pharmacists?
2. If I am personally named in a claim, does that policy defend me?
3. What protection do I have if a complaint is filed against my individual pharmacist license?
4. If I'm working through a staffing agency, what insurance does the agency provide for me?
5. Do I need, or does my contract require, my own individual professional liability policy?

Those five questions can tell you a lot more than simply asking, “Does the pharmacy have insurance?”

Pharmacy Owners Should Be Asking the Other Side of This Question

There's an important flip side.

If you own the pharmacy and use relief pharmacists, you need to understand how your pharmacy's insurance responds to their work, too.

I've written separately about that issue in Are Your Relief Pharmacists Actually Covered by Your Pharmacy Insurance?

That's the companion question to this one.

The pharmacist needs to know who protects them.

The pharmacy owner needs to know who protects the pharmacy.

Both parties are better off answering those questions before the first shift.

Know What Protects Your License and Your Livelihood

Relief work can be a great opportunity for pharmacists. It can provide additional income, flexibility, and the ability to work with different pharmacies and communities.

But independence also means taking greater responsibility for understanding your own professional risk.

Your license is ultimately your livelihood.

Don't assume you're protected because the pharmacy has insurance.

Don't assume you're protected because a staffing company placed you there.

And don't assume all individual pharmacist policies work the same way.

Ask the questions.

Understand the policy.

And know who's standing behind you before something goes wrong.

If you're a pharmacist or pharmacy owner trying to understand how professional liability and license-defense coverage apply to your particular situation, I'm always happy to help you take a closer look.

For a broader look at the coverage considerations for your practice, visit the pharmacy insurance page.