Pharmacy business insurance averages $54 monthly, with costs ranging from $5 to $107 based on coverage types and your state's requirements.
Get matched with cheap pharmacy business insurance below.
Updated: October 17, 2025
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Pharmacy business insurance costs range from $66 to $1,284 annually on average, depending on your coverage type, state and sub-industry.
Your pharmacy insurance premiums depend on location, claims history, services offered and employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable pharmacy business insurance costs.
We found average business insurance costs for pharmacy companies for commonly needed coverage are as follows:
| BOP | $91 | $1,090 |
| General Liability | $62 | $746 |
| Professional Liability (E&O) | $57 | $688 |
| Workers' Comp | $6 | $76 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your pharmacy business insurance cost for general liability insurance varies by location. Maine offers savings of $54 monthly compared to the $62 national average, while Louisiana costs $72 monthly.
| Alabama | $61 | $729 |
| Alaska | $59 | $705 |
| Arizona | $59 | $707 |
| Arkansas | $60 | $715 |
| California | $69 | $830 |
| Colorado | $62 | $739 |
| Connecticut | $67 | $810 |
| Delaware | $67 | $799 |
| Florida | $67 | $806 |
| Georgia | $63 | $757 |
| Hawaii | $69 | $823 |
| Idaho | $59 | $706 |
| Illinois | $68 | $818 |
| Indiana | $61 | $727 |
| Iowa | $59 | $710 |
| Kansas | $60 | $724 |
| Kentucky | $58 | $692 |
| Louisiana | $72 | $867 |
| Maine | $54 | $646 |
| Maryland | $59 | $711 |
| Massachusetts | $65 | $782 |
| Michigan | $59 | $706 |
| Minnesota | $58 | $699 |
| Mississippi | $62 | $748 |
| Missouri | $61 | $735 |
| Montana | $62 | $742 |
| Nebraska | $59 | $705 |
| Nevada | $70 | $845 |
| New Hampshire | $62 | $741 |
| New Jersey | $70 | $844 |
| New Mexico | $62 | $749 |
| New York | $72 | $864 |
| North Carolina | $54 | $646 |
| North Dakota | $54 | $648 |
| Ohio | $58 | $691 |
| Oklahoma | $60 | $725 |
| Oregon | $58 | $692 |
| Pennsylvania | $72 | $858 |
| Rhode Island | $68 | $818 |
| South Carolina | $64 | $767 |
| South Dakota | $58 | $697 |
| Tennessee | $61 | $727 |
| Texas | $63 | $752 |
| Utah | $59 | $709 |
| Vermont | $60 | $715 |
| Virginia | $57 | $679 |
| Washington | $71 | $847 |
| West Virginia | $65 | $782 |
| Wisconsin | $61 | $731 |
| Wyoming | $57 | $689 |
Note: We based these general liability rates on pharmacy businesses with two employees across different states. Your rates will vary based on your location, claims history and the types of services you provide.
The cost of workers' compensation insurance for your pharmacy business varies by state. North Carolina offers rates as low as $5 monthly, while New York reaches $7 monthly. Our analysis shows state regulations and claim histories drive these pricing differences.
| Alabama | $6 |
| Alaska | $6 |
| Arizona | $6 |
| Arkansas | $6 |
| California | $7 |
| Colorado | $6 |
| Connecticut | $7 |
| Delaware | $7 |
| Florida | $7 |
| Georgia | $6 |
| Hawaii | $7 |
| Idaho | $6 |
| Illinois | $7 |
| Indiana | $6 |
| Iowa | $6 |
| Kansas | $6 |
| Kentucky | $6 |
| Louisiana | $7 |
| Maine | $6 |
| Maryland | $6 |
| Massachusetts | $7 |
| Michigan | $6 |
| Minnesota | $6 |
| Mississippi | $6 |
| Missouri | $6 |
| Montana | $6 |
| Nebraska | $6 |
| Nevada | $7 |
| New Hampshire | $6 |
| New Jersey | $7 |
| New Mexico | $6 |
| New York | $7 |
| North Carolina | $5 |
| Oklahoma | $6 |
| Oregon | $6 |
| Pennsylvania | $7 |
| Rhode Island | $7 |
| South Carolina | $7 |
| South Dakota | $6 |
| Tennessee | $6 |
| Texas | $6 |
| Utah | $6 |
| Vermont | $6 |
| Virginia | $6 |
| West Virginia | $7 |
| Wisconsin | $6 |
Note: We based these workers' comp rates on pharmacy businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost depends on your state location. Nationwide, this coverage averages $57 monthly. North Carolina offers the most affordable rates at $50 monthly, while Louisiana has the highest costs at $70 monthly.
| Alabama | $57 |
| Alaska | $55 |
| Arizona | $54 |
| Arkansas | $55 |
| California | $65 |
| Colorado | $57 |
| Connecticut | $62 |
| Delaware | $61 |
| Florida | $63 |
| Georgia | $58 |
| Hawaii | $57 |
| Idaho | $54 |
| Illinois | $63 |
| Indiana | $56 |
| Iowa | $55 |
| Kansas | $55 |
| Kentucky | $52 |
| Louisiana | $70 |
| Maine | $51 |
| Maryland | $55 |
| Massachusetts | $60 |
| Michigan | $55 |
| Minnesota | $53 |
| Mississippi | $58 |
| Missouri | $56 |
| Montana | $58 |
| Nebraska | $53 |
| Nevada | $66 |
| New Hampshire | $57 |
| New Jersey | $64 |
| New Mexico | $58 |
| New York | $66 |
| North Carolina | $50 |
| North Dakota | $50 |
| Ohio | $54 |
| Oklahoma | $54 |
| Oregon | $53 |
| Pennsylvania | $66 |
| Rhode Island | $63 |
| South Carolina | $58 |
| South Dakota | $54 |
| Tennessee | $56 |
| Texas | $57 |
| Utah | $53 |
| Vermont | $56 |
| Virginia | $52 |
| Washington | $65 |
| West Virginia | $60 |
| Wisconsin | $56 |
| Wyoming | $53 |
Note: We based these professional liability rates on pharmacy businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Pharmacy business insurance costs differ across states, with business owner's policy (BOP) coverage showing the widest variation. BOP insurance cost ranges from $78 monthly in North Carolina to $107 monthly in New York for the same coverage level.
| Alabama | $90 |
| Alaska | $86 |
| Arizona | $86 |
| Arkansas | $86 |
| California | $102 |
| Colorado | $89 |
| Connecticut | $100 |
| Delaware | $97 |
| Florida | $98 |
| Georgia | $93 |
| Hawaii | $99 |
| Idaho | $88 |
| Illinois | $100 |
| Indiana | $88 |
| Iowa | $87 |
| Kansas | $88 |
| Kentucky | $84 |
| Louisiana | $101 |
| Maine | $78 |
| Maryland | $87 |
| Massachusetts | $96 |
| Michigan | $84 |
| Minnesota | $85 |
| Mississippi | $91 |
| Missouri | $88 |
| Montana | $89 |
| Nebraska | $85 |
| Nevada | $105 |
| New Hampshire | $92 |
| New Jersey | $101 |
| New Mexico | $92 |
| New York | $107 |
| North Carolina | $78 |
| North Dakota | $80 |
| Ohio | $85 |
| Oklahoma | $88 |
| Oregon | $83 |
| Pennsylvania | $105 |
| Rhode Island | $100 |
| South Carolina | $95 |
| South Dakota | $85 |
| Tennessee | $87 |
| Texas | $91 |
| Utah | $87 |
| Vermont | $85 |
| Virginia | $84 |
| Washington | $104 |
| West Virginia | $94 |
| Wisconsin | $88 |
| Wyoming | $84 |
Note: We based these BOP rates on pharmacy businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Pharmacy business insurance costs vary widely by provider, ranging from $41 to $74 monthly. These differences reflect each insurer's market focus and risk appetite, which shift based on profitability and coverage expansion opportunities.
| Chubb | $63 | $751 |
| Coverdash | $41 | $497 |
| Hiscox | $60 | $718 |
| NEXT Insurance | $46 | $546 |
| Nationwide | $43 | $514 |
| Progressive Commercial | $66 | $791 |
| Simply Business | $55 | $661 |
| The Hartford | $44 | $528 |
| Thimble | $60 | $718 |
| biBERK | $74 | $890 |
Your Pharmacy business insurance cost depends on several factors that insurers evaluate when pricing your policy:
Your pharmacy's location directly influences insurance costs through local regulatory environments and claim patterns. Operating in areas with high prescription drug abuse rates, frequent robberies or strict state pharmacy board requirements creates increased risk.
Urban pharmacies have different theft exposure than suburban locations, while state-specific compounding regulations and controlled substance handling requirements substantially impact premium calculations.
Previous incidents involving dispensing errors, robbery claims or customer injuries affect your premiums for three to five years.
Medication errors resulting in patient harm, security breaches involving controlled substances or slip-and-fall accidents in your store can increase your rates. Pharmacies maintaining clean records with documented quality assurance protocols and security measures secure preferred pricing from carriers.
Standard retail prescription filling represents the baseline risk for pharmacy operations. Expanding into specialized services like compounding, immunizations, medication therapy management or durable medical equipment sales introduces additional liability exposures.
Compounding pharmacies have substantially higher premiums due to the increased risk of contamination or dosing errors in custom preparations.
Staffing composition affects workers' compensation and employment practices liability costs.
Independent pharmacies with one pharmacist and minimal support staff maintain lean insurance expenses, while chain locations employing multiple pharmacists, pharmacy technicians and retail staff see premiums scale with total payroll. Each licensed professional you employ increases your professional liability exposure.
Prescription fill rates and controlled substance inventory directly correlate with insurance costs. High-volume pharmacies processing thousands of prescriptions monthly have greater exposure to dispensing errors than smaller operations.
Maintaining significant quantities of controlled substances requires enhanced security measures and creates elevated theft risk, both factors that insurers consider when calculating premiums.
Annual revenue and customer volume indicate your operational scale and insurance requirements. Small independent pharmacies generating $1.5 million annually need different coverage than regional chains processing $10 million across multiple locations.
Higher prescription volumes create more opportunities for errors despite maintaining quality control standards.
Professional liability limits you establish create major premium variations. Most pharmacies carry $1 million to $3 million in malpractice coverage per incident, though those handling high-risk compounding or serving large patient populations often need $5 million or more.
General liability, property coverage for inventory and equipment, cyber liability for HIPAA-protected data and crime insurance for theft protection all add costs beyond basic malpractice premiums.
Your pharmacy management systems, security infrastructure and automation technology influence premium calculations. Modern pharmacies with electronic prescription verification, barcode scanning, automated dispensing cabinets and comprehensive surveillance systems demonstrate commitment to error prevention and theft deterrence.
Pharmacies lacking these safeguards or using outdated verification methods have higher premiums due to increased error and security risks.
Financial credibility affects insurance accessibility and pricing for pharmacy operations.
Pharmacy owners with excellent credit scores often secure discounts of 15% to 40% compared to those with credit challenges. Strong financials demonstrate business stability in a highly regulated industry where insurers carefully evaluate operational compliance and long-term viability.
Reducing your pharmacy business insurance cost requires strategic shopping and our step-by-step guide to smart business practices. Here's how you can find the best cheap business insurance for your pharmacy business and build a better risk profile over time.
Understanding the types of coverage your pharmacy actually needs prevents paying for unnecessary policies.
For pharmacies, we recommend that you get general liability, workers' comp, professional liability (errors & omissions), product liability, commercial property and cyber liability insurance for comprehensive coverage that meets regulatory and operational needs.
Rates vary dramatically between pharmacy insurers for identical coverage. Getting quotes from at least three companies often reveals savings, and independent agents familiar with healthcare businesses can handle the comparison shopping for you.
Most insurers discount bundled policies substantially. Combining general liability, commercial property, and professional liability with one carrier costs less than buying separate policies from different companies, with potential savings of 15% to 25%.
Higher deductibles lower your monthly premiums since you pay more out-of-pocket before insurance coverage begins, making you more responsible for smaller claims. Consider $2,500 to $5,000 deductibles for property and $1,000 to $2,500 for liability if your pharmacy has adequate cash reserves.
Many insurers charge processing fees for monthly payments that can add to your total cost. Paying upfront eliminates these fees and sometimes earns additional discounts, potentially saving 5% to 10% on your annual premium.
Don't set it and forget it after finding cheap rates. As you add services like immunizations or compounding, your coverage needs change too. Check your policy each year to add necessary endorsements and adjust limits that reflect your current inventory values and service offerings.
Pharmacy business insurance costs range from $5 to $107 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Pharmacy business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation is the cheapest at $6 monthly, but it covers only employee injuries. Most pharmacy businesses need professional liability coverage ($57 monthly) since it protects against medication dispensing errors and malpractice claims.
You'll pay more in these states. General liability in California runs $69 monthly (versus $62 national average), and BOP costs $102 monthly (versus $91 average). New York is similar at $70 and $107, respectively.
Yes, compounding pharmacies have substantially higher premiums due to increased contamination and dosing error risks. Compounding operations require higher professional liability limits and specialized coverage for custom preparations that standard retail pharmacies don't need.
Bundling delivers greater savings compared to purchasing individual policies. Most insurers offer discounts when you combine general liability, professional liability and commercial property coverage with one carrier, potentially saving 15% to 25%.
Multiple factors increase premiums: high prescription volumes, compounding services, controlled substance inventory, previous dispensing errors, location in high-crime areas, lack of modern verification technology and poor credit scores.
Higher deductibles reduce monthly premiums but increase out-of-pocket costs during claims. Consider your pharmacy's cash reserves and anticipated claim frequency when deciding. Given the potential severity of medication error claims, many pharmacies opt for lower deductibles on professional liability.
Workers' compensation costs for pharmacy businesses vary by state, ranging from $5 monthly in North Carolina to $7 monthly in New York.
Yes, BOP insurance is worth it for pharmacy companies. BOP costs $91 monthly and bundles general liability, commercial property and business interruption coverage. This package deal costs less than purchasing these coverages separately, making it a smart investment for pharmacy operations.
Shop annually when your policy renews. Comparing quotes from multiple insurers can uncover savings, especially after business changes like adding immunization services, expanding into compounding or hiring additional pharmacists.
We collected pharmacy business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small pharmacy business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the pharmacy industry.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
