Manufacturers, importers and suppliers of automated medicine dispensing and related systems.

Where the sector’s exposures differ

An equipment, configuration or integration error can affect the medicine dispensed, the quantity or the timing. An inaccurate dispense may lead to patient injury, financial loss or downtime. Identify whether the business supplies hardware, writes software, integrates systems or supports customers.

Insurance covers to assess

Review product injury cover, product errors and omissions, professional indemnity for integration or programming, and cyber exposure. A pharmacy’s clinical responsibilities and the supplier’s technical responsibilities are different. Software updates and remote maintenance need disclosure.

Policy features to discuss

We can discuss the insured activities, insured entities, territorial limits, defence costs, excesses and aggregate limits offered by insurers. If a customer requests particular insurance, let us know so we can consider the available cover. Legal interpretation, drafting and negotiation of contracts should be handled by your legal adviser.

An illustrative exposure

A machine is alleged to dispense the wrong quantity after a system update. Patient allegations and a pharmacy’s rectification or interruption costs require separate consideration.

This is a hypothetical example to explain cover questions, not a Mercantile client case or a paid claim. The proposed policy must be assessed before assuming any response.

Information needed for a quotation

Machine function; software ownership; integration and testing; user training; maintenance and remote access; customer contracts; regulatory status applicable to the product.

Also provide turnover, wages, subcontractor and labour-hire costs, the legal entities to insure, existing schedules and wordings, claims or known circumstances, and planned changes. A clear activity breakdown helps us approach suitable markets and compare the terms offered.

Common questions

What should a dispensing equipment supplier disclose?

Describe the hardware, software, integration, maintenance and training services provided. This helps insurers consider the actual activities proposed for cover.

Can Mercantile review existing insurance?

Yes. Send the schedule and wording together with a description of your activities and key contracts. We can examine significant gaps and approach suitable insurers, subject to their appetite and acceptance. We assist Australian businesses from our Norwest NSW office.

Related insurance sectors

Our service focuses on insurance placement and policy cover. Product classification, approvals and regulatory compliance are matters for your regulatory adviser or the relevant authority.

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Prepared by Mercantile Insurance Brokers. Updated 30 September 2026. General information for Australian businesses. Availability and cover depend on insurer acceptance, policy terms, exclusions, limits and deductibles.