The Pharmacy Board has issued a reminder that professional indemnity insurance standard has been revised, in its latest communique.
In December 2015 the Board published a revised registration standard for professional indemnity insurance (PII) arrangements for pharmacists which will come into effect on 1 July 2016.
The revised standard will replace the standard that is currently in place, and will apply to all registered pharmacists except those with non-practising registration, it says.
The revised standard has not changed significantly compared to the standard that is currently in place, continuing to set a minimum amount of cover of $20 million which reflects the industry standard.
There have been some minor changes to the requirements, with the revised standard specifically requiring policies to have retroactive cover and automatic reinstatement. There is also additional detail about:
- third party cover and run-off cover;
- the need to conduct a self-assessment and seek expert advice on whether more than the minimum amount of cover is required;
- the need to notify the Board within seven days if PII arrangements are no longer in place;
- the required evidence of the PII arrangements in place; and
- consequences if a pharmacist does not meet the standard.
The Board published the standard well in advance of its start date to provide pharmacists adequate time to meet it. To ensure a smooth transition:
- Pharmacists must meet the revised standard by the time they renew their registration which is due by 30 November 2016 (pharmacists whose registration is not due for renewal by 30 November 2016 must meet the requirements of the new standard by 30 November 2016).
- Until that time, it is acceptable that the PII arrangements in place meet the Board’s PII arrangements registration standard dated 1 July 2010. However, if the PII arrangements policy is due for renewal in the meantime, the pharmacist must ensure the new policy meets the new standard.
- If a pharmacist’s PII arrangements policy is not due for renewal before renewing their registration, they will need to contact their insurer, and if necessary, have their policy adjusted so it meets the new standard by the time they renew their registration.
The Board says it is encouraging all pharmacists to review the new registration standard to check whether their current PII arrangements will need to be adjusted to meet the requirements of the new standard.