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Information on Pharmacy Wholesaler Bonds
This page is a guide to surety bonds for pharmacy wholesalers. If you’re looking for information on DMEPOS bonds, click here.
At SuretyBonds.com, we understand surety bonds can be a confusing topic. For this reason, we’ve developed this quick and easy guide to explain pharmacy wholesaler surety bonds, and make the process of getting one as simple and efficient as possible.
What is a pharmacy bond?
In general, a pharmacy bond is a type of license and permit surety bond issued to keep businesses from mismanaging drug shipments and sales. This type of surety bond also performs the following:
- Provides protection to the pharmacies a pharmaceutical wholesaler does business with
- Creates a binding legal contract between the pharmaceutical wholesalers and the federal and state agencies governing the industry ensuring wholesalers will strictly adhere to laws
- Acts as a deterrent to those pharmaceutical wholesalers who might attempt to dodge laws and statutes by holding them accountable for any unlawful behavior
- Ensures Medicare beneficiaries receive reasonable products and services from legitimate suppliers
Businesses distributing or transacting drugs and/or medical equipment to wholesalers, pharmacies or practitioners must file a surety bond before becoming licensed in certain states.
Pharmacy bond costs
Bond costs and requirements vary greatly by state as the bond amounts and regulations surrounding each license are established at the state level. Select your state below for more information about wholesale pharmaceutical bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Learn more about pharmacy bonds
Each pharmacy surety bond issued brings three entities together into a legally binding contract.
- The principal is the pharmacy business purchasing the bond as a guarantee of lawful business operations
- The obligee is the government agency requiring the bond as a way to reinforce and ensure industry regulations.
- The surety is the insurance underwriter issuing the bond, thus backing the principal.
The financial protection provided by pharmacy bonds can be used to pay fines or other penalties imposed by a government agency. If a government agency makes a claim on a pharmacy bond to collect unpaid fines, the surety will investigate the claim. If the claim is validated, the surety will pay up to the bond’s full amount and require the pharmacy wholesaler to reimburse it for the full claim.
Pharmacy bond exemptions
Although the majority of pharmacy wholesalers need to be licensed and bonded in order to legally provide their services, there are a couple exceptions for certain pharmacy wholesalers that do not need to be bonded:
- Licensed manufacturers only dispensing drugs they themselves manufacture might not need a bond as a part of the licensing process.
- Pharmacy warehouses typically only need to be bonded if they are engaged in wholesale distribution.
To determine whether your business needs a bond, contact the government agency regulating pharmacy licensing in your state.
Pay A Low Rate For Your Bond
By working with SuretyBonds.com, you could pay just 2-4% of your bond amount. This means if you need $25,000 of coverage, you could pay just $500 to $1,000 for your pharmacy bond.
Because SuretyBonds.com is a brokerage agency, we’re able to shop your bond with the surety industry’s top underwriters to find you the best rate available. To get your free, no obligation price quote, contact a surety specialist today!