Druggists' Liability Insurance This form of insurance was first introduced by THE FIDELITY AND CASUALTY COMPANY OF NEW YORK in 1898. The proposition was made to them at that time by a member of a prominent druggists' association in New York. This association was organized by the different druggists for the purpose of furnishing legal advice to any of its members who were unfortunate enough to get into trouble, but it did not give any monetary assistance in case of a suit being successfully brought against the druggist. What the association desired was that some reliable insurance company would stand behind them in such cases, they agreeing to pay a fixed sum for this protection. Acting on this suggestion, THE FIDELITY AND CASUALTY_COMPANY OF NEW YORK decided to issue such policies of insurance to retail pharmacists or druggists transacting business in Greater New York, protecting them against financial losses that they might sustain to the extent of $5.000.00 by reason of claims or suits for damages occurring through alleged errors of persons in their employ engaged in compounding or selling drugs. Folicies which covered the proprietor only were accordingly issued at a of $10.00 per annum. In addition to this charge, however, it was arranged that each clerk employed in the compounding or sale of drugs should file an application with the company and receive a certificate of approval on the payment of $3.00 additional by the druggist. This application called for particulars of his former employments, also the institution or college where he received his pharmaceutical education. The company investigated his record and reported to the druggist. If it was found that the applicant was in any way incompetent or undesirable, the certificate of approval was withdrawn. If another person was engaged to take the place of the rejected onc. the company issued a new certificate of approval free of charge for the unexpired portion of the term for which the policy was written. Under the above arrangement the proprietor was obliged to notify the company every time a change in employces was made, and on account of these changes which were constantly occurring, it was decided to issue the insurance on ▲ broader basis and permit the assured to make a change in his staff whenever he saw fit without notice to the company. The Insurance is now written on that line. This class of insurance, it may be said, is the only protection a druggist has against loss through his own errors, mistakes of clerks and illegal claims of the blackmailer in the compounding and sale of drugs. It is an insurance which no druggist can afford to be without. It is not only a protection to him, but is an assurance to his customers in the event of a mistake that he is protected by a conservative company who has confidence enough in him to become responsible for any errors that may occur in his establishment, and to defend him where action is brought, based upon unjust claims. It is a recognized fact that while there are a great many genuine mistake, made by the druggists or their clerks, there are many alleged errois in compounding prescriptions, and some of the complaints are invented for the sole purpose of extracting money from the pockets of the druggist. THE FIDEI ITY AND CASUALTY COMPANY guarantees to protect druggists against any errors that may be made, but the main object is to prevent fraud on the part of those desiring to blackmail one of its applicants for something he has not done. It is a very serious matter to make a mistake in the putting up of a prescription, but it is far more serious to the druggist to have it noised around that such a mistake was made. Quite a few druggists have been compelled to discontinue their business through the publicity give to the fact that the blunder was made. Dishonest persons are not slow in recognizing the fear that druggists have of an exposure of this kind, and have in a great many instances taken advantale of their knowledge in this direction. In this city a few years ago there existed a band of professional blackailers who made the druggist their prey. The scheme operated by them. according to the statements of several persons who had reason to know, was about as follows: A prescription requiring the compounding of some simple remedy is presented to the druggist, paid for and carried off After a lapse of a few hours the party who presented the prescription originally returns to the store very much excited, declaring that some one of his family has been very nearly poisoned through an error of the prescription clerk. On account of the certainty of a few of the smaller druggists as to their arrangements behind the prescription counter, the possibility of a mistake being made is at once denied, but in the majority of cases the druggist becomes fright♦ned and readily agrees to a settlement of some sort out of court. The came above referred to has been tried on રી. few of of our policy-holders, and we have been able in almost every case to have the matter thrown out of court. For the first two or three years of the existence of this class of insurence the efforts of the company were confined to insuring druggists in Greater New York, where its success has demonstrated its need, and where it is now recognized as essential as fire insurance. In Greater New York it received the endorsement of several of the leading pharmaceutical associations. Because of the constant demand for this class of insurance from other sections, we have decided to extend the field, and today we have policyolders in nearly every State. In bringing this form of insurance before the various State associations we have always thought it well to point out to them that, instead of their undertaking to handle these matters through local associations or combina tions of druggists, better results could probably be obtained by placing the claims in the hands of attorneys thoroughly qualified to deal with damage its of this character, and who would be, in the terms of the policy issued, employed by the company to defend all such claims. On this line the following resolution was passed by the Manhattan Pharmaceutical Association, January 21, 1901: "That the Protection Organization of the Manhattan Pharmaceutical Asscalation, in so far as concerns the defense of the members of the association in cases arising from alleged negligence in compounding or selling drugs or medicines, be discontinued, and that the members of the association be advised to protect themselves against such liability by taking out policies in the Druggists' Liability Insurance Department of THE FIDELITY AND CASUALTY COMPANY OF NEW YORK.” In New York and other larage cities we have the majority of the leading drug stores on our books as policy-holders. We have had quite a low claims to adjust in this line, and, as before stated, where the cases have been fraudulent on their face, have succeeded in beating them out before coming to court, while others we have settled out of court. At all the in pertant points we have regular and experienced counsel to defend our clients against damage suits, and they are required to keep in close touch with any matters going on in their vicinity. To show you what one of the leading New York associations thinks of the Insurance, we quote from an article which appeared in their monthly Dulletin a few months ago: "No druggist should remain without this insurance, which is furnished by THE FIDELITY AND CASUALTY COMPANY OF NEW YORK, at a noderate cost compared with the risk involved. The company has conducted this line for the past thirteen years. Even with the greatest care an error will accidentally occur in a pharmacy, which, however slight it may be, may result in an expense of hundreds or perhaps thousands of dollars, and may end with loss of business and reputation. It is truly in comprehensible that a druggist should place himself in this dangerous po. sition when he can for a few dollars transfer it to a great corporation, which commands the best facilities and the ablest attorneys to unmask effectively blackmailing attempts and to settle just claims in a legal manner without sensational newspaper clamor, "That THE FIDELITY AND CASUALTY COMPANY is able and willing to fulfill its liabilities in this line in a businesslike and liberal manner, and that the officials entrusted with this branch possess the necessary tact and circumspection to defend the pharmacist with the greatest discreten. has been frequently proven during the last thirteen years. For obvicus reasons we cannot give particulars. The company, however, may, upon request, show them to applicants at its office. "The conditions upon which the company has accepted the insurances have been, up to the present time, quite easy; but in our judgment they should be more exacting, perhaps somewhat in accordance with the rules adopted by the Legal Aid Committee of the New York Deutscher ApothekerVerein in August, 1894. We mean by this that it was the object of the Legal Aid Committee not alone to benefit by this insurance to the protection of the pharmacist, but also to have him observe every precaution. We nust particularly emphasize the proposition that such a desirable protection shuld not be so construed as to encourage illegal actions or carelessness, For to permit the insured, after the payment of the small premium charge, to disregard proper precautions. "According to the policy, the company must, with few exceptions, take charge of every case for which it assumes the risk; but it is, of course, a liberty to refuse insurance for the future if circumstances indicate that there has been gross carelessness in the conduct of the business. We would call particular attention of our associates to the fact that if the company meets too many losses, of small or great importance, it will in the end be obliged to raise the present premiums. This would not alone involve financial loss to the druggists, but would soon become known to the public and give to the daily papers a welcome opportunity to censure druggists and to damage the dignity of the 'profession.' Policies are issued on the following basis: For a policy covering one store with its proprietor, or one $2,500 $10.00 5,000 15.00 The company will also cover the assured against loss through alleged errors of employees at the following additional rates: A. Registered pharmacists or prescription clerks. Annual Rate for Each Person. DEPARTMENTS. $3.00 B. Assistant pharmacists or junior prescription clerks, if no registered pharmacists are employed.. 3.00 C. Assistant :rmacists or junior prescription clerks working under one or more registered pharmacists.. $2.00 D E. Relief clerks (pharmacists) $3.00 • . $1.00 $1.00 "The company does not require that all employees shall be covered and paid for; but, of course, the company would not be liable for any error made by an employee who was not covered. Most druggists therefore think it better in view of the low premiums, and safer, anyway, to cover all empioyees, including relief clerks, except those who never, under any circumstances, compound, sell or deliver drugs. Having decided what classes of employees to cover, the assured musi then include all the employees of that class. It is easy to see that it would not be practicable for the company to issue policies upon any other basis. The number of employees so to be included is the average number employed in the year preceding the date when the policy is issued. Having fairly determined that number and procured a policy accordingly, the assured may, if his business requires it. increase the number of employees in any class covered and have insurance upon the new employees, without notice to the company and without additional cost. em Where one concern operates two or more stores, the charge for omployees is the same as above. while the store charge is reduced ten per Cent for two stores. fifteen per cent for three, and so on in like ratio up to a maximum of twet ty-five per cent. This reduction is made only when Te policy is issued covering all the stores, that the company's total liability is either $2,500 or $5,000. If a separate policy in the full amount is issued for each store, the regular premium is charged. I. 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