PEI PHARMACISTS ASSOCIATION NEWSLETTER September 2008 For members, friends and supporters of the PEI Pharmacists Association Special Malpractice Insurance Information Issue Each year, the Association AGM 2008 presents awards to deserving Kendra Day The Annual General Meeting of Pharmacists who contribute in a The Wyeth Apothecary the PEI Pharmacists Association positive way to their profession Award was held at our Annual Awards & and their communities. The 2008 The first award in Canada that CE Conference, May 23rd to 25th recipients are acknowledged specifically recognizes at the Rodd Charlottetown Hotel. below: pharmacists who have Minutes were distributed after the Kelly Herget completed advanced training or meeting. Please advise of any Sunshine Award: The education (e.g., Certified errors or omissions. If you would pharmacist who is friendly over Diabetes Educator) and have like another copy of the minutes, and above the call of duty and is successfully expanded their contact the Association office. customer service focused. practice as a result. Wyeth will The Weekend was VERY Natalie Gaudet award to each winner a $1,000 well attended. The Friday night Rookie of the Year: New grad bursary to be donated to the networking & registration evening who has become involved in pharmacy school alma mater, started off the weekend. It was a community and pharmacy advanced training program, or great opportunity to mingle with activities. disease-based charity of his or colleagues and sponsors in a Gordon White her choice. Kendra chose to casual environment. Saturday Honorary Life Membership: donate her award to the Leigh morning began with the 2008 Pharmacist with long term Semple Fund at the College of Annual General Meeting of the involvement in the profession Pharmacy, Dalhousie Univ. Association, followed by a full both nationally and provincially. Continuing Education Day. The Raymond Murphy President Update Awards Banquet and Meritorious Service Award: The Association would very Entertainment Evening was a Pharmacist who is involved in much like to thank Mary Ellen huge success! Attendees provincial pharmacy activities Rennie, our outgoing President, enjoyed live music provided by plus community activities that for her insight and leadership Guinness, with performances by benefit the profession. throughout the past 2 years. World Champion Irish Dancers. Kilby Rinco & Mary Ellen has been an asset to Congratulations to our door prize Crystal MacEachern the Association, and has winners: Eddie McQuaid (Gift Certificate of Recognition: contributed greatly to the Basket $150 retail value), & Pharmacist who has contributed profession of pharmacy on PEI. Denise Boulter and Natalie to provincial pharmacy activities Welcome to Terry Walsh, Gaudet ($100 spa package over and above the call of duty. our incoming President. We look each). We were blessed with Erin Farrell MacKenzie forward to assisting him in his gorgeous weather for our Sunday Whitehall Robins Bowl of Hygeia: new role. family barbeque and golf day. Thanks to all in attendance. Awarded annually to an Island pharmacist for outstanding Thank-you Don’t miss out next year!!! Thank-you to our retiring professional and community executive member, Anne Cairns service and welcome to our new Award Winners members, Greg Burton and Roy 2 PEI Pharmaceutical Assn Cairns. check our website government for a new contract www.peipharm.info will commence. We will require How Do I Get From Your a strong united force to ensure the best deal for pharmacy. Involved??? President… If you are not a member already, I extend a warm This is an exciting time for welcome to you & ask you join Pharmacy, as health professions Hello & welcome back from our association & enjoy the move toward collaborative your summer vacation. I hope rewards that come with playing practice. Without an active all enjoyed a relaxing PEI a role in shaping the future of summer with family & friends. Association, Pharmacy would be “your” profession. left behind! Please consider On behalf of your executive I In closing, I would like to take becoming an active member of value this opportunity to thank this opportunity to thank you for the Association. We need all you for your support & your confidence & trust, as Island pharmacists to take an participation of your President of your Association. I interest in promoting our Association. A special am excited about this challenge profession to stakeholders! appreciation is extended to all & look forward to working with past and present members who all of the executive & its New grads have LOTS to offer as sit on the executive & director, Erin. they begin their careers as Association committees & to To you and your family, Pharmacists. Many are eager to Erin MacKenzie for her Best wishes and Good Health! get involved but are unsure of dedication. Her devotion and how to get started, or of what expertise in promoting & Terry Walsh getting involved entails. furthering the pharmacy profession is well recognized. The association works Your Individual The first step is to become a Malpractice Insurance: member of the PEI Pharmacists diligently to represent your concerns & promote the Are you sure that you are Association. This is the body that awareness of the pharmacist’s covered? advocates for pharmacists, and By David Spratt: Dion Durrell + promotes our profession to contribution to the health of Islanders. The landscape is Associates stakeholders such as government, the public, and evolving at a rapid rate & we must position ourselves to keep Individual Malpractice other healthcare professions. Insurance is an important There are many ways one can pace. The future of our profession is promising as the aspect of professional contribute. You can put your protection for pharmacists name forward to become a pharmacist’s role & scope of practice expands. Our practicing in Canada and is member of the executive (a one Association welcomes these now mandatory in many year term with roughly 6 provinces. In order to select the meetings per year, many via changes & requires your continued support to meet best coverage available, it is teleconference), or you may important to understand your chose to join a committee, that these challenges. As incoming President, my #1 insurance objectives and may meet once to three times a ensure that your insurance year. Involvement is very flexible! priority is to listen to your concerns & respond to them to policy satisfies these. This If you are thinking of contributing article outlines a number of to our profession by becoming the best of my ability. The executive was elected to important considerations for active in your Association, please your insurance related contact our Executive Director. represent you but can only do so with the support & solidarity decisions. For more information, Claims Made vs Occurrence contact Erin MacKenzie @ of its membership. Within this year negotiations with the PEI Based Insurance firstname.lastname@example.org or This is a fundamental 3 PEI Pharmaceutical Assn difference in the nature of period (ie you should not need is an indicator of the insurance coverage and it is any coverage after you stop fundamental financial strength critical to understand the practicing as long as any of the company that is behind difference to ensure that there incidents that occurred while your policy. This is important to is no gap in coverage. you were practicing are ensure that the company you Claims Made Insurance: covered). are relying on is financially A claims made policy However, a potential coverage strong & will be there to pay provides coverage if the policy issue occurs at the start of the any claim that may be filed is in force at the time a claim policy since any incident that against you. An insurance is made. For example, if the occurred before the policy was policy only has value if the policy period is January 1, in force would not be covered. underlying company is able to 2008 to December 31, 2008, Similar to the “tail coverage” respond to claims. any claim filed during this issue, this issue could be Insurance company ratings period would be covered, resolved by purchasing “prior are very important to them, and including claims related to events” coverage. should be to you. Most of the events prior to the start of the Unfortunately, this type of top tier insurance brokers are policy. This is a very good thing coverage is often not available restricted to only placing when starting new coverage. as part of an occurrence based insurance with companies that A potential coverage issue policy. This can create are rated “A” or better by AM exists at the point of canceling significant coverage risk for any Best. An AM Best financial the policy, which could occur if pharmacist obtaining this type strength rating is an you voluntarily stop practicing of insurance either as first time independent opinion, based on at the time of retirement, buyer of coverage or if a comprehensive quantitative maternity leave etc. Any claim converting from a claims made and qualitative evaluation of a made after the cancellation of based policy (ie any incident company’s balance sheet the policy would not be that occurred during the period strength, operating covered. This potential covered by the prior claims performance and business coverage issue can be made policy but where an profile. “A “rating is described remedied by maintaining “tail actual claim was made later as Excellent and categorized as coverage” for a reasonable when an occurrence based secure. “B” rating is described period after you cease policy was in force, would not as Fair & categorized as practicing to ensure that be covered). vulnerable. insurance coverage remains in Obtaining coverage from an A place. Conclusion: rated insurance carrier is not a The professional We believe that a claims requirement of all regulators in liability policy available through made malpractice insurance Canada. However, this may be the CPBA insurance program is policy is in the best interests of subject to change in the future on a Claims Made basis and a pharmacist starting coverage when the importance of an A provides automatic unlimited for the first time. Appropriate rating becomes more tail coverage upon retirement. tail coverage is available understood. through the CPBA insurance Conclusion: Occurrence Based program. Purchasing an insurance policy Insurance: from an A rated insurance An occurrence based Insurance Company carrier is recommended. This insurance policy provides Rating will provide comfort in the coverage if the policy is in force “Who cares about rating? I just underlying strength of the at the time of the incident that want a policy that is company providing the results in the claim. This type of inexpensive and keeps me coverage. The malpractice coverage eliminates the “tail” compliant with my regulator.” insurance coverage through issue at the end of the policy An insurance company rating the CPBA insurance program is 4 PEI Pharmaceutical Assn placed with an A rated all-together if a pharmacist is insurance carrier. Some of the subject to one or more Deductibles other available insurance disciplinary actions within a The deductible is the amount products available in Canada policy period. In such cases, that a pharmacist would pay are placed with insurance the pharmacist would be left to out of pocket before the companies that are rated below his/her own devices to cover insurance policy would A. the remaining costs. respond. A number of other Nature of Malpractice While not as common, failure to available insurance products Insurance Claims render proper advice impose deductibles at various represents approximately 14% levels (which can be higher There are 3 broad categories of all reported claims. than the annual policy into which most pharmacy Examples include failure to premium). The CPBA malpractice claims fall based advise of side-effects and/or insurance product has a zero on the historical loss adverse reaction. deductible. experience of CPBA: Given the increasing costs of Dispensing error disciplinary matters, the Coverage Levels Disciplinary matter increasing costs of litigation & The minimum coverage level Failure to render proper legal costs & the fact that the requirements vary by province advice CPBA policy is a claims-made with a general trend towards Dispensing errors continue to policy, the importance of increasing minimal levels. be the most frequent type of reporting a claim or potential Additional optional levels of claim, representing claim in a timely manner to the coverage are available from approximately 46% of all Insurer is crucial. Failure by an some sources, but not all. The reported claims. Dispensing Insured pharmacist to do so purchase of additional errors; whether incorrect could seriously jeopardize insurance coverage is a dosage or incorrect medication, available coverage. personal decision and also give rise to the largest Conclusion: dependant on the potential exposure. Death and All pharmacists should circumstances of each compromised baby situations assess the level of claim individual. The CPBA are but 2 examples of the exposure that they have based insurance program offers serious nature of these types of on the nature of their practice. optional coverage levels that errors, which are often Selecting a level of malpractice comply with the minimum accompanied by law suits and insurance should satisfy the levels of the member provinces lengthy litigation. provincial regulator minimum and provides for optional higher Approximately 35% of requirement (if applicable) & levels of coverage. Coverage reported claims are disciplinary provide a total level of coverage levels are in increments of $1 matters.The CPBA policy to satisfy your personal comfort million and range from $1 provides a $50,000 limit on all level. Ensure that you million to $5 million (all per loss such matters. This means that understand the level of and in the aggregate) and a the Insurer(s) agrees to disciplinary cover provided by new coverage option of $2 reimburse the Insured your insurance policy which is million per loss and $4 million pharmacist for legal expenses usually provided as a sub-limit in the aggregate. subject to a maximum of to the level of malpractice $50,000 for the total claims coverage. The CBPA policy Disciplinary Action Coverage reported during the policy provides a high level of A common cause of period. Notably, the average coverage at no additional cost insurance company claims is a cost of any one disciplinary and with no deductible. result of disciplinary action. matter easily exceeds $10,000; The CPBA policy provides & it is not uncommon for a low Other Important $50,000 of disciplinary action limit of liability to be exhausted Considerations: coverage (with no deductible) 5 PEI Pharmaceutical Assn which is superior coverage to other alternative policies. We believe that the CPBA professional liability insurance program provides the best coverage that is currently available to a pharmacist in Canada.