Pharmacy Bonds are known by many names such as Drug Wholesale Bonds, Wholesaler Pharmacy Bonds, Wholesale Drug Distributor Bonds, or Wholesale Distributor of Prescription Drug Bonds. If you are a pharmacy or practitioner who will be distributing dangerous drugs to other business entities, you will need to get a Pharmacy Bond before you can legally start doing business.
Since January of 2006, the California State Board of Pharmacy has required pharmaceutical wholesalers to furnish a California Pharmacy Wholesaler Bond.
What is a California Pharmacy Wholesaler Bond?
A California Pharmacy Wholesaler Bond is a type of surety bond that connects you, the California State Board of Pharmacy, and a surety company into a contractual agreement. This bond is a not a protection for you, but rather a protection for the state of California.
When you have a Pharmacy Wholesaler Bond, you are promising the state that you will act in accordance with all rules and regulations relating to dealing pharmaceutical drugs.
What Does This Bond Do?
This bond holds you accountable for your business practices and decisions. Should you not follow California state rules and regulations during a business transaction, a claim can be made against your bond. If the claim is discovered to be valid, the surety company who issued your bond will hold you liable under your bond.
Common situations that could result in a claim against your Pharmacy Bond include:
- Failing to pay a fine issued by the California Board of Pharmacy
- Distributing a pharmaceutical drug to an unauthorized individual
- Operating without a pharmaceutical license
- Mismanaging drug shipments or sales
How to get a California Pharmacy Bond
Step #1: Contact surety bond company
Step #2: Complete California Pharmacy Bond Application
Step #3: Get quotes for your bond
Step #4: Purchase bond
Step #5: Submit to California Board of Pharmacy
How Much Will My CA Pharmacy Wholesaler Bond Cost?
California has set the bond amount at $100,000. (Renewing applicants may be eligible to submit a $25,000 bond)
You will not need to pay the full bond amount to get your bond. Instead, you will just pay a portion of the total amount. Surety bond rates are calculated using your personal financial strength as seen in your credit score. Those with good credit (over 670) can expect to get bonded at a 1-4% rate. Those with less-than-perfect credit will have to pay more.
Getting a Pharmacy Bond can be expensive, but it doesn’t have to be. At Surety Solutions, our online Bond Cost Calculator lets you view free quotes for your California Pharmacy Wholesaler Bond so you can compare prices before you buy. We have relationships with over 30 of the top insurance carriers in the nation, and can get you bonded for rates at the lowest end of the spectrum.
I Got My Bond…What’s Next?
Once you get your bond, you are ready to start your Wholesaler License Application. Instructions can be found here. Licenses and bonds run congruent and need to be renewed every 2 years.