Pharmacy business insurance costs $5 to $107 monthly based on your state's requirements and coverage needs.
Get matched with cheap pharmacy business insurance below.
Updated: December 30, 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.
Location, claims history, services offered and employee count affect your pharmacy insurance premiums.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable pharmacy business insurance costs.
Average business insurance costs for pharmacy companies:
| BOP | $91 | $1,090 |
| General Liability | $62 | $746 |
| Professional Liability (E&O) | $57 | $688 |
| Workers' Comp | $6 | $76 |
*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 business factors and location.
Select your industry and state to get a customized quote.
Pharmacy general liability insurance costs $62 monthly on average. Maine pharmacies pay $54 monthly, $8 below the national average. Louisiana pharmacies pay the most at $72.
| 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 |
*These rates reflect pharmacy businesses with two employees. Location, claims history and services affect your costs.
Pharmacy workers' compensation insurance ranges from $5 to $7 monthly. North Carolina pharmacies pay $5 monthly. New York pharmacies pay $7. State regulations and claim histories set these rates.
| 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 |
*These rates reflect pharmacy businesses with two employees. State regulations set your requirements and costs.
Professional liability insurance costs $57 monthly on average. North Carolina pharmacies pay the lowest rate at $50 monthly. Louisiana pharmacies pay the highest rate at $70.
| 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 |
*These rates reflect pharmacy businesses with two employees. Services offered and location affect your costs.
Business owner's policy (BOP) insurance for pharmacies ranges from $78 monthly in North Carolina to $107 in New York — the widest variation among coverage types.
| 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 |
*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 ranges from $41 to $74 monthly, depending on the provider. Each insurer sets rates based on its market focus, risk appetite and profitability goals.
| 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:
Pharmacy location affects insurance costs through local regulations 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 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 increase rates. Pharmacies maintaining clean records with documented quality assurance protocols and security measures qualify for 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 pay much higher premiums due to increased contamination and dosing error risks in custom preparations.
Staffing composition affects workers' compensation and employment practices liability costs.
Independent pharmacies with one pharmacist and minimal support staff pay less, while chain locations employing multiple pharmacists, pharmacy technicians and retail staff pay higher premiums based on total payroll. Each licensed professional you employ increases your professional liability exposure.
Prescription fill rates and controlled substance inventory increase insurance costs. Pharmacies processing thousands of prescriptions monthly have higher dispensing error risks than smaller operations.
Controlled substance inventory increases your premiums in two ways: you need security measures like safes and alarm systems, plus insurers see higher theft risk. Both drive up your rates.
Annual revenue and customer volume determine 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 even with quality control standards.
Professional liability limits you establish affect your premiums. 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 increase 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 reduce error and theft risks.
Pharmacies lacking these safeguards or using outdated verification methods have higher premiums due to increased error and security risks.
Credit scores affect insurance accessibility and pricing for pharmacies. Pharmacy owners with excellent credit scores get 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.
You can lower your pharmacy insurance costs through smart shopping and better business practices. Compare quotes from multiple insurers and improve your risk profile to reduce premiums.
Buy only what your pharmacy needs. General liability, workers' comp, professional liability (errors and omissions), product liability, commercial property and cyber liability insurance cover regulatory and operational requirements.
Pharmacy insurers charge different rates for identical coverage. Get quotes from at least three companies. Independent agents familiar with health care businesses handle comparison shopping.
Insurers discount bundled policies. Combining general liability, commercial property and professional liability with one carrier costs less than buying separate policies from different companies. Bundling saves 15% to 25%.
Higher deductibles lower monthly premiums; you pay more out-of-pocket before coverage kicks in. Choose $2,500 to $5,000 deductibles for property and $1,000 to $2,500 for liability when you have adequate cash reserves.
Insurers charge processing fees for monthly payments. Paying upfront eliminates these fees and earns discounts, saving 5% to 10% on annual premiums.
Check your policy annually after finding cheap rates. Coverage needs change when you add services like immunizations or compounding. Add endorsements and adjust limits for current inventory values and services.
Pharmacy business insurance costs range from $5 to $107 monthly. Location, claims history and business size affect your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly help 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 costs $69 monthly (versus $62 national average), and BOP costs $102 (versus $91 average). New York is similar at $70 and $107.
Yes, compounding pharmacies pay much 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 saves money versus buying individual policies. Most insurers discount combined general liability, professional liability and commercial property coverage by 15% to 25%.
Several 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. Evaluate your pharmacy's cash reserves and expected claim frequency when deciding. Medication error claims can be severe, so many pharmacies choose lower deductibles on professional liability.
Workers' compensation costs for pharmacy businesses vary by state, ranging from $5 monthly in North Carolina to $7 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 costs less than buying these coverages separately.
Shop for quotes annually when your policy renews. Compare quotes from multiple insurers to find savings, especially after business changes like adding immunization services, expanding into compounding or hiring additional pharmacists.
Pharmacy owners deal with insurance challenges, from medication error liability to controlled substance inventory risks. We designed our rate analysis to reflect a typical independent pharmacy's coverage needs and help you understand what you'll actually pay.
Our quotes use a standard independent pharmacy profile: two employees (plus the owner), $150,000 annual payroll and $300,000 annual revenue. This mirrors the staffing and revenue of a neighborhood pharmacy with one or two pharmacists plus support staff.
Why this profile matters: Most independent pharmacies operate with similar staffing levels. Using this baseline lets you gauge whether your pharmacy will pay more or less based on your specific circumstances. Higher revenue, more employees or additional services like compounding all increase premiums.
Coverage limits: We quoted $1 million per occurrence and $2 million aggregate for all coverage types. For business owner's policy (BOP), we added $5,000 business property coverage since most pharmacy owners need to protect prescription inventory, computers and dispensing equipment.
Our selection process: We chose insurers offering national coverage with online quoting. You can get these rates in your state. We prioritized companies serving pharmacy businesses. Their specialized pharmacy knowledge leads to accurate underwriting and competitive pricing.
Already-insured status matters: Insurers view continuous coverage favorably. If you're opening a new pharmacy or have coverage gaps, expect slightly higher initial quotes until you establish an insurance history.
This methodology gives you realistic rate expectations for a standard pharmacy operation. Your actual costs will vary based on your state's regulations, your pharmacy's services and your claims history.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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.
