Underinsurance - What does it mean for pharmacy?

Michael Oswald

Wednesday, May 3, 2017

Community Pharmacy Scotland Insurance Services provides a range of insurance solutions to members and provides support if members need to make a claim. Recently we have seen an increase in the number of claims for damage to refrigerated stock after the breakdown of refrigerated units, unfortunately some members have miscalculated the value of their refrigerated stock. 

If your business is underinsured it could well mean a claim against your insurance policy may not provide you with the level of protection you expected. For example, if a pharmacy premises insured for £2,000 of refrigerated stock was to suffer a fault with their refrigerated unit and makes a claim but discovers the actual loss is £4,000, it could result in the claim being based on an average under insurance clause.  In this example, the pharmacy was 50% under insured meaning the insurer would only be obligated to pay a total of £1,000 towards the claim.

It’s also worth looking through your policy as the terms and conditions may automatically require your refrigerated unit to be under a certain age or be part of an annual maintenance plan. 

Underinsurance can apply to almost any area of your business so it’s important to review your insurance policy on a regular basis and make sure the sums insured are an accurate reflection of the insurance cover your pharmacy requires.

Kinnell Corporate can supply Community Pharmacy Scotland members with competitive and comprehensive pharmacy shop insurance packages. For more information, please contact Kinnell Corporate on 01292 292094 or email


Community Pharmacy Scotland is an Introducer Appointed Representative of Kinnell Corporate Limited.

CPS insurance Services and Community Pharmacy Scotland Insurance Services are trading names of Kinnell Corporate Limited.

Kinnell Corporate Limited. Registered in England No. 5314336.
Registered Office: 14 Castle Street, Liverpool, L2 0NE
Kinnell Corporate Limited is authorised and regulated by the Financial Conduct Authority