Alabama Court Denied Insurance for Pharmacy Error Judgment
The state supreme court ruled an insurer is not liable for a $4.75 million medication error judgment.
Updated on Oct. 9, 2026 in Insurance
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The Alabama Supreme Court affirmed a lower court decision denying insurance coverage for a $4.75 million judgment against a pharmacy. The court found that a professional-services exclusion in the policy precluded coverage for the 2013 medication error.
Why it matters
The ruling highlights the legal consequences of failing to review policy exclusions, as the court held the pharmacy owner was contributorily negligent for not reading his insurance contract.
The pharmacy faced a $4.75 million judgment after a technician recorded a belladonna dose 1,000 times stronger than prescribed. The owner had switched from a Zurich policy to a Nationwide plan in 2008.
The players
Alabama Supreme Court
This is the highest judicial body in Alabama that oversees the interpretation of state laws and insurance contracts.
Nationwide Property and Casualty Insurance Company
This is a major national insurer that provides commercial property and liability coverage for businesses.
OMS Pharmacy
This is a local pharmacy business located in Tuscaloosa that was the defendant in the malpractice case.
Hannah D. Browne
She is the patient who suffered severe belladonna poisoning due to a significant medication dosing error.
The details
A pharmacy technician in Tuscaloosa incorrectly recorded the belladonna component of a medication in grams instead of milligrams, leading to a dose 1,000 times stronger than required. The patient suffered severe poisoning, resulting in the massive judgment that Nationwide Property and Casualty Insurance Company refused to cover.
Timeline
In 2008, the pharmacy switched its insurance coverage from Zurich to Nationwide.
The medical incident occurred in March 2013 when a patient suffered belladonna poisoning.
The Alabama Supreme Court issued its final decision on October 9, 2026.
Market Dynamics
The decision clarifies the enforceability of professional-services exclusion clauses in commercial insurance contracts within Alabama. It underscores how insurers mitigate liability for specific business activities, impacting how pharmacy owners must assess their coverage risks.
Small business owners must review policy exclusions to ensure their commercial liability coverage aligns with the specific risks of their professional services. Failure to read these documents can leave a business personally liable for multimillion-dollar judgments if a claim is excluded.
The takeaway
This case serves as a critical reminder that failing to read an insurance policy is considered negligence that can result in the loss of coverage. Business owners should proactively consult with their brokers to verify that specific service-based errors are explicitly covered.
Further reading
Learn more about local regulations and coverage standards in the Alabama Insurance section.
Source note: This article includes information reported by Al.
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