The Hartford earned our top spot for the best small business insurer for pharmacy companies for its competitive rates and coverage. However, we recommend comparing quotes from our other top picks, including Nationwide, NEXT and Coverdash.
Best Pharmacy Business Insurance
Updated: July 9, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford is the best business insurance company for pharmacy firms because it offers the greatest balance of affordability and customer service.
The Hartford offers competitive cheapest overall commercial insurance rates for pharmacy businesses and leads in professional liability coverage costs.
To shop for business insurance for your pharmacy business, aresearch industry risks, talk to agents and other pharmacy bdue to its affordability and coveragedue to its affordability and coverageusiness owners and compare multiple options.
Best Business Insurance for Pharmacy Companies
| The Hartford | 96 | 98 | 91 |
| NEXT Insurance | 95 | 96 | 94 |
| Nationwide | 94 | 96 | 91 |
| Coverdash | 93 | 98 | 83 |
| Simply Business | 91 | 91 | 83 |
| Progressive Commercial | 88 | 91 | 81 |
| Hiscox | 87 | 87 | 87 |
| Thimble | 86 | 88 | 81 |
| Chubb | 85 | 81 | 87 |
| biBERK | 85 | 80 | 91 |
*All scores were based on a pharmacy business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. The Hartford
pros
Lowest professional liability insurance rates
Extensive experience with over 200 years in the industry
Highest financial stability ratings
cons
Less affordable for workers' comp policies
COMPANY HIGHLIGHTS
The Hartford has secured the top position in our pharmacy business insurance rankings, building on its 200-year history in the insurance industry. For pharmacy operations, the company offers great value with competitive rates across essential coverage types, while offering particularly attractive professional liability insurance that provides important protection against the unique risks of pharmaceutical dispensing, patient counseling and medication management.
The Hartford's superior customer service earned the highest ratings from over 10,000 business owners across various industries, while its A+ from AM Best provides pharmacy owners with confidence that claims will be processed reliably when coverage is most needed.
2. NEXT
pros
Best customer service experience
Reasonable rates for most coverage types
Large coverage selection
cons
Slower quote times than competition
Lower financial stability ratings
COMPANY HIGHLIGHTS
NEXT is the most balanced business insurer for pharmacy firms, combining excellent customer service, competitive rates and comprehensive coverage. Despite being newer to the industry with under 10 years of experience,
NEXT has earned a 4.7 out of 5.0 rating from over 3,000 customers. It's also tied for second in affordability, with competitive rates for workers compensation, general liability and professional liability insurance.
3. Nationwide
pros
Wide range of coverage options
Good financial stability ratings
Lowest rates for general liability insurance
cons
Need an agent to purchase a policy
Higher costs for some coverage types
COMPANY HIGHLIGHTS
Nationwide earned the third spot in our pharmacy business insurance rankings through its effective combination of affordability and customer-focused service. It offers the lowest rates for general liability insurance, with rates as low as $43 monthly, providing pharmacy owners necessary protection against medication dispensing and pharmaceutical operation risks without straining budgets.
Nationwide's positive service ratings and efficient claims process make it a smart choice for pharmacies seeking reliable coverage with responsive customer service.
Cheapest Business Insurance for Pharmacy Firms
Based on our study of business insurance pricing, Nationwide offers competitive rates for pharmacy companies, leading in general liability coverage. However, this applies only to pharmacy companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Pharmacy Companies
With an average monthly rate of $43, Nationwide offers the lowest-cost general liability insurance for pharmacy companies. Also consider quotes from Coverdash and The Hartford, the next-cheapest options.
| Nationwide | $43 | $514 |
| Coverdash | $44 | $526 |
| NEXT Insurance | $52 | $629 |
| The Hartford | $52 | $626 |
| Simply Business | $60 | $726 |
| Progressive Commercial | $63 | $752 |
| Thimble | $67 | $803 |
| Hiscox | $69 | $823 |
| Chubb | $77 | $926 |
| biBERK | $101 | $1,211 |
Cheapest Workers' Comp Insurance for Pharmacy Companies
For pharmacy businesses shopping for workers' comp insurance, most major insurers offer similar rates around $3 per month, including Thimble, biBerk, Coverdash, Hiscox and Simply Business.
| biBERK | $3 | $38 |
| Coverdash | $3 | $37 |
| Hiscox | $3 | $37 |
| Nationwide | $3 | $41 |
| NEXT Insurance | $3 | $38 |
| Progressive Commercial | $3 | $35 |
| Simply Business | $3 | $36 |
| The Hartford | $3 | $37 |
| Thimble | $3 | $33 |
| Chubb | $4 | $44 |
Cheapest Professional Liability Insurance for Pharmacy Companies
The Hartford offers the most affordable professional liability insurance options for pharmacy companies, with low average monthly rates of $108. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Simply Business.
| The Hartford | $108 | $1,298 |
| NEXT Insurance | $113 | $1,353 |
| Progressive Commercial | $115 | $1,381 |
| Hiscox | $120 | $1,441 |
| Simply Business | $120 | $1,438 |
| Thimble | $121 | $1,453 |
| Coverdash | $122 | $1,459 |
| biBERK | $125 | $1,501 |
| Nationwide | $130 | $1,564 |
| Chubb | $141 | $1,696 |
Cheapest BOP Insurance for Pharmacy Companies
Coverdash provides the most affordable business owner's policy (BOP) for coverage for pharmacy companies, with an average yearly cost of $762 for bundled general liability and property protection. That's a savings of roughly $12 annually compared to Nationwide, the second most affordable option.
| Coverdash | $63 | $762 |
| Nationwide | $65 | $774 |
| The Hartford | $67 | $799 |
| NEXT Insurance | $76 | $912 |
| Simply Business | $90 | $1,080 |
| Progressive Commercial | $94 | $1,132 |
| Hiscox | $104 | $1,242 |
| Thimble | $104 | $1,250 |
| Chubb | $115 | $1,382 |
| biBERK | $130 | $1,565 |
What Type of Coverage Do You Need for a Pharmacy Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED PHARMACY BUSINESS COVERAGE
Pharmacy companies should carry general liability insurance because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. It's especially helpful for pharmacy businesses with commercial contracts or high-risk jobs, like technical, legal, or customized services.
Coverage Recommendations by Pharmacy Company Type
We've broken down risk considerations and coverage recommendations by pharmacy business type, ordered from highest to lowest risk for claims frequency. Understanding these differences helps ensure your pharmacy business gets the right protection for its specific services.
Pharmacy Company Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
Retail Pharmacies | Professional Liability (Pharmacist Malpractice), General Liability, Product Liability, Cyber Liability, Commercial Property, Workers' Comp, Employment Practices Liability, Controlled Substances Coverage, Umbrella Policy ($5M+) | Medication dispensing errors, adverse drug reactions, customer slip/fall accidents, prescription data breaches, employee injuries, robbery/theft of controlled substances, prescription fraud incidents | Medication error malpractice suits, adverse drug reaction lawsuits, slip/fall customer injury claims, cyber breach class actions, wrongful death from dispensing errors, DEA violation penalties, prescription fraud liability |
Hospital/Institutional Pharmacies | Professional Liability (high limits), General Liability, Product Liability, Cyber Liability, Commercial Property, Workers' Comp, Medical Malpractice, IV Compounding Coverage, Umbrella Policy ($10M+) | IV compounding errors, medication administration errors, contaminated sterile preparations, adverse drug interactions, employee injuries from chemical exposure, cyber attacks on patient data | IV compounding malpractice lawsuits, medication error wrongful death suits, contamination class actions, adverse drug reaction litigation, cyber breach affecting patient records, regulatory violations (FDA/Joint Commission) |
Compounding Pharmacies | Professional Liability (very high limits), Product Liability, General Liability, Contamination/Recall Coverage, Commercial Property, Workers' Comp, Environmental Liability, Regulatory Defense, Umbrella Policy ($25M+) | Contaminated compounded medications, sterile preparation failures, adverse reactions to custom formulations, employee chemical exposure, equipment contamination, FDA inspection violations | Mass contamination lawsuits, compounding error class actions, wrongful death from contaminated preparations, FDA enforcement actions, product recall litigation, environmental contamination claims |
Mail-Order Pharmacies | Professional Liability, Product Liability, General Liability, Cyber Liability, Commercial Property, Workers' Comp, Shipping/Transit Coverage, Temperature-Controlled Storage, Umbrella Policy ($10M+) | Medication dispensing errors, shipping delays affecting treatment, temperature control failures, prescription data breaches, packaging errors, employee repetitive stress injuries | Medication error malpractice suits, treatment delay wrongful death claims, temperature excursion lawsuits, cyber breach class actions, shipping error litigation, prescription mix-up liability |
Specialty Pharmacies | Professional Liability (high limits), Product Liability, General Liability, Cyber Liability, Commercial Property, Workers' Comp, Temperature-Controlled Storage, Patient Counseling Liability, Umbrella Policy ($15M+) | High-cost specialty drug errors, temperature control failures, patient counseling negligence, adverse reactions to biologics, employee injuries from handling hazardous drugs, data breaches | High-value specialty drug error suits, temperature excursion class actions, patient counseling malpractice claims, biologic adverse reaction lawsuits, cyber breach affecting specialty patient data, regulatory violations |
Pharmacy Benefit Managers (PBMs) | Professional Liability, General Liability, Cyber Liability, Errors & Omissions, Commercial Property, Workers' Comp, Employment Practices Liability, Regulatory Defense, Umbrella Policy ($25M+) | Claims processing errors, prior authorization delays, formulary management disputes, cyber breaches of member data, employment disputes, network pharmacy contract violations | Claims processing error class actions, prior authorization delay lawsuits, formulary restriction litigation, cyber breach affecting millions of members, antitrust violation suits, network pharmacy dispute litigation |
How to Get the Best Cheap Business Insurance for Your Pharmacy Company
Here's a step-by-step method for finding the best and cheapest business insurance for your pharmacy company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To get the best deal, research average costs, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The best way to find the lowest rates is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Pharmacy Business's Liability Risk
Reducing liability risks helps pharmacy businesses manage insurance costs. We’ve organized practical risk mitigation strategies by business type and risk level to help you find the best fit for your needs.
Pharmacy Business Risk Type | Included Types of Pharmacy Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Compounding pharmacies, controlled substance dispensing, specialty/oncology pharmacies, clinical services/immunizations, hospital/institutional pharmacies, sterile preparations |
|
Moderately high | Retail chain pharmacies, long-term care pharmacies, mail-order prescription services, pharmacist clinical consulting, medication therapy management |
|
Moderate | Independent retail pharmacies, over-the-counter retail, medical equipment/supplies, basic prescription dispensing, pharmacy benefit management |
|
Moderately low | Pharmacy consulting services, medication packaging, pharmaceutical sales, pharmacy technology services, wellness programs |
|
Lowest | Pharmaceutical education, pharmacy management consulting, regulatory compliance consulting, pharmacy software development, industry research |
|
Best Insurance for Pharmacy Business: Bottom Line
The Hartford is the top insurer for pharmacy business insurance, offering the best overall coverage and competitive rates across multiple policy types. We also recommend getting quotes from NEXT and Nationwide. For the best deal, talk to agents, research providers and pricing and compare multiple quotes side by side.
Pharmacy Business Insurance: FAQ
Below, we answer common questions about pharmacy business insurance.
Who offers the best pharmacy business insurance overall?
The Hartford offers top-tier business insurance for pharmacy companies with a stellar customer service score, earning a MoneyGeek score of 96 out of 100. NEXT Insurance follows closely with an outstanding rating, scoring 95.
Who has the cheapest business insurance for pharmacy companies?
Here are the most affordable business insurance options for pharmacy companies by coverage type:
- Cheapest general liability coverage: Nationwide at $43 monthly
- Cheapest workers' compensation: Thimble at $3 monthly
- Cheapest professional liability coverage: The Hartford at $108 monthly
- Cheapest BOP insurance: Coverdash at $63 monthly
What business insurance is required for pharmacy organizations?
Workers' compensation insurance for employees and commercial auto insurance for business vehicles are legal requirements for pharmacies, with variations by state. General liability insurance and surety bonds aren't legally required but are essential for most clients and lease agreements.
For pharmacy businesses seeking reliable insurance providers, options include The Hartford and Coverdash, known for affordability and customer service.
How much does pharmacy business insurance cost?
Business insurance costs for pharmacy businesses vary depending on the type of coverage needed. Here is a breakdown of the costs for commonly required insurance for small businesses:
- General liability: $63 per month
- Workers comp: $3 per month
- Professional liability: $122 per month
- BOP insurance: $91 per month
How We Chose the Best Pharmacy Business Insurance
We selected the best business insurer for pharmacy companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.
- NEXT. "Customer Reviews." Accessed June 16, 2025.