Pharmacy business insurance costs vary based on coverage type, which helps you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $6 for workers' compensation to $91 for a business owner's policy.
How Much Does Pharmacy Business Insurance Cost?
Pharmacy business insurance starts at $6 per month, though your specific business details and coverage needs will determine your final rate.
Discover cheap pharmacy business insurance below.
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Updated: August 18, 2025
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Key Takeaways
Pharmacy business insurance costs range from $6 to $91 monthly, depending on your coverage type.
Your pharmacy insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable pharmacy business insurance costs.
Average Pharmacy Business Insurance Cost Overall
| BOP | $91 |
| General Liability | $62 |
| Professional Liability (E&O) | $57 |
| Workers' Comp | $6 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Pharmacy Business Insurance Cost for General Liability Coverage by State
Your pharmacy business general liability coverage costs depend on location. North Carolina offers the most savings at $54 monthly (versus the $62 national average), while Louisiana costs $72 monthly.
| Alabama | $61 |
| Alaska | $59 |
| Arizona | $59 |
| Arkansas | $60 |
| California | $69 |
| Colorado | $62 |
| Connecticut | $67 |
| Delaware | $67 |
| Florida | $67 |
| Georgia | $63 |
| Hawaii | $69 |
| Idaho | $59 |
| Illinois | $68 |
| Indiana | $61 |
| Iowa | $59 |
| Kansas | $60 |
| Kentucky | $58 |
| Louisiana | $72 |
| Maine | $54 |
| Maryland | $59 |
| Massachusetts | $65 |
| Michigan | $59 |
| Minnesota | $58 |
| Mississippi | $62 |
| Missouri | $61 |
| Montana | $62 |
| Nebraska | $59 |
| Nevada | $70 |
| New Hampshire | $62 |
| New Jersey | $70 |
| New Mexico | $62 |
| New York | $72 |
| North Carolina | $54 |
| North Dakota | $54 |
| Ohio | $58 |
| Oklahoma | $60 |
| Oregon | $58 |
| Pennsylvania | $72 |
| Rhode Island | $68 |
| South Carolina | $64 |
| South Dakota | $58 |
| Tennessee | $61 |
| Texas | $63 |
| Utah | $59 |
| Vermont | $60 |
| Virginia | $57 |
| Washington | $71 |
| West Virginia | $65 |
| Wisconsin | $61 |
| Wyoming | $57 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Pharmacy Business Insurance Cost for Workers’ Compensation Coverage by State
Your pharmacy business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $5 monthly and New York the highest at $7 monthly. Our analysis reveals how state regulations and claim histories create these 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Pharmacy Business Insurance Cost for Professional Liability Coverage by State
The cost for professional liability varies by state for pharmacy businesses. The national average is $58 monthly. North Carolina offers the lowest rates at $50 monthly for E&O insurance, while Louisiana charges the highest 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Pharmacy Business Insurance Cost for BOP Coverage by State
Business owners' policy rates show variation in pharmacy insurance costs nationwide. Monthly premiums range from $78 in North Carolina to $107 in New York for comparable coverage.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Pharmacy Business Insurance Cost
Insurance companies look at several factors to determine your pharmacy business insurance costs. Understanding these elements helps you plan your budget better. Here's how different variables affect your rates.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to natural disasters or with high crime rates increases your risk; state differences also create premium variations.
Safety record and claims History
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Different pharmacy services carry varying risk levels. A pharmacy offering only basic prescription dispensing faces lower premiums than one providing specialized compounding services, immunizations, or clinical consultations.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small independent pharmacy with $500,000 in annual revenue will pay less than a multi-location operation generating $5 million yearly.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive pharmacy equipment and delivery vehicles require higher coverage limits, increasing your premiums. A pharmacy using automated dispensing systems and specialized refrigeration units needs more coverage than one with basic equipment.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Pharmacy Business Insurance
Smart shopping and risk management strategies can significantly lower your pharmacy business insurance costs, and these proven methods will help reduce your premiums both now and in the future.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your pharmacy needs prevents paying for unnecessary coverage. Professional liability protects against medication errors, while general liability covers customer injuries. Commercial property insurance safeguards your inventory and equipment.
- 2
Shop multiple insurance companies
Insurance rates can vary between providers for identical pharmacy coverage. Compare quotes from at least three insurers to find the best rates. Consider working with an independent agent who specializes in pharmacy insurance.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies. Combining professional liability, general liability and property coverage with one carrier typically results in savings compared to separate policies.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. Consider your pharmacy's financial capacity to handle larger out-of-pocket expenses before selecting deductible amounts.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often results in lower total costs and may qualify you for additional discounts.
- 6
Review and adjust your coverage annually
Your pharmacy's insurance needs change as your business grows. Review your coverage yearly to ensure it matches your current operations and inventory levels. Remove unnecessary coverage and adjust limits based on your business size.
Insurance for Pharmacy Business Cost: Bottom Line
Pharmacy business insurance costs range from $6 to $91 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 Insurance Cost: FAQ
Our research team compiled answers to the most common questions about pharmacy business insurance costs to help you make informed coverage decisions.
What is the cheapest type of pharmacy business insurance?
Workers' compensation insurance costs $6 monthly, making it the most economical option. However, pharmacies typically need general liability insurance ($62 monthly) to protect against customer injuries and property damage claims.
How much can I save by bundling my pharmacy business insurance policies?
Bundling multiple policies through a business owner's policy (BOP) offers the best value. Insurers provide discounts when combining essential coverages like general liability and property insurance into one package.
What factors make my pharmacy business insurance more expensive?
General Liability insurance is typically the most budget-friendly option for pharmacy businesses, with monthly premiums starting around $62 for basic coverage and protection against common risks.
Pharmacy insurance costs vary based on factors such as location, claims history, inventory value, prescription volume, staff size and the type of services offered. These factors can make insurance more expensive.
Should I choose a $500 or $2,500 deductible for my pharmacy business insurance?
Higher deductibles lower your monthly premiums, but require larger out-of-pocket payments when filing claims. Base your choice on available cash reserves and claim frequency.
How much does workers' compensation cost for pharmacy businesses by state?
Monthly workers' compensation costs for pharmacies vary by state, ranging from $5 in North Carolina to $7 in New York, with most states falling between $6 and $7.
Is business owner's policy (BOP) worth the extra cost for pharmacy companies?
BOP insurance for pharmacies costs about $91 per month based on location. The combined coverage for liability, property and business interruption provides excellent value versus purchasing individual policies.
How often should I shop around for pharmacy business insurance quotes?
Review your pharmacy business insurance annually during renewal time. Compare at least three insurers to find better rates, particularly if your business has grown or changed services.
How We Determined Pharmacy Business Insurance Costs
We collected pharmacy business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small pharmacy businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.