Myths About Employer-Provided Insurance

The dangers

Many employee and locum pharmacists are told or are led to believe by their employers that they do not need their own insurance because they are covered by their employer's insurer. The National Pharmacy Association (NPA) is the largest insurer of pharmacy employers in the UK and it, too, promotes the view that its insurance scheme extends to employees and locums. This is an over- simplification, because an employer's defence association will control the defence in the event of an error situation and this could place employee and locum pharmacists at a considerable disadvantage.

The issues

The NPA is a membership organisation for owners of pharmacies and as such its constitution requires it to back its members' interests ahead of those of the employees.

The rules of the NPA state:

"Where a conflict arises [between the employer and employee/locum] the Association's 'allegiance' must lie primarily with the member – the owner of the business."

The practical consequences

Because of this situation, there are many practical consequences which could leave the individual employee or locum vulnerable and exposed. For example, because the employer's defence association was controlling the defence, the employee or locum would find it difficult to exonerate him/herself if the cause of the error was an environmental issue that was under the control of the employer and not the employee, e.g. poor staffing levels, staff training cuts or questionable residential home or drug acquisition policies.

Further complications

What happens if the employee or locum is facing a criminal prosecution, or a professional disciplinary hearing?

And what if the employee feels aggrieved and intends to take the employer to an Industrial Tribunal?

Best interests served?

Any pharmacists who truly believe that their interests will always be best served in all situations by relying on NPA insurance could well regret that they did so.

It is clear that the interests of the employer are different from the interests of the employee or locum.

Employers should rely on their employer Defence Association, and employees and locums should rely on their own independent Defence Association. This removes conflicts and should ensure the best possible defence for all parties concerned.