Pharmaceutical Bond
A pharmaceutical bond, or pharmacy bond, is a type of license and permit surety bond issued to keep businesses from mismanaging drug shipments and sales.
Key Highlights
- This type of bond provides protection to the pharmacies a wholesaler does business with and creates a legal contract ensuring that wholesalers adhere to state and federal laws.
- A pharmaceutical bond is typically required for businesses involved in the wholesale distribution or importation of prescription drugs and medical devices.
- The standard minimum pharmacy bond amount for most states is $100,000, with the annual premium ranging from 1 to 5% of the bond amount.
How do I purchase a pharmaceutical bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue pharmaceutical bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Pharmaceutical Bond FAQs
A pharmaceutical bond, or pharmacy bond, is a type of license and permit surety bond issued to keep businesses from mismanaging drug shipments and sales. This type of bond provides protection to the pharmacies with which a wholesaler does business, creates a legal contract ensuring that wholesalers adhere to state and federal laws, and ensures that Medicare beneficiaries receive reasonable products and services from legitimate suppliers.
A pharmaceutical bond is typically required for businesses involved in the wholesale distribution or importation of prescription drugs and medical devices. This includes:
- Pharmaceutical wholesalers and distributors: Companies that distribute prescription drugs to pharmacies, hospitals, or other medical facilities often need a pharmaceutical bond as part of their licensing requirements.
- Medicare Part B suppliers: Businesses that supply durable medical equipment or prescription drugs to Medicare beneficiaries may be required to post a bond to ensure compliance with federal billing and service standards.
- Importers of pharmaceuticals: Any business importing pharmaceutical products into the US must file an entry bond with the US Customs and Border Protection and comply with FDA regulations. This bond ensures that the importer adheres to all applicable laws and that the products meet safety and labeling standards.
- Online pharmacies and mail-order drug providers: These businesses may also be required to obtain a pharmaceutical bond depending on the state and the nature of their operations.
The bond serves as a financial guarantee that the business will operate legally and ethically and protects government agencies and consumers from potential fraud or regulatory violations.
The cost of a pharmaceutical bond typically depends on the bond amount required and the applicant's creditworthiness. The standard minimum bond amount for most states is $100,000, with the annual premium ranging from 1 to 5% of the bond amount.
Why Get Bonded Through NFP?
Fast and Easy
All Types. All States.
Surety Bond Experts
Strong Relationships
Pricing Flexibility
Explore All Surety Bonds
Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.
Featured Bonds
Additional Commercial Surety Bonds
Featured Bonds
Additional Construction Surety Bonds
Featured Bonds
Additional License and Permit Surety Bonds
Explore All Surety Bonds
Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.
