Skip to content
Search icon

Insurance for Drug and Alcohol Rehabilitation Centers

Insurance for Drug and Alcohol Rehabilitation Centers 

Insurance is a vital safeguard for drug and alcohol rehabilitation centers, helping them navigate the challenges and risks inherent in their operations. Professional liability insurance protects against claims of negligence or malpractice, while general liability insurance addresses risks such as accidents on the premises. Cyber liability insurance is crucial for safeguarding sensitive client data, ensuring compliance with privacy regulations, and protecting against financial losses from data breaches.

Many state and regulatory agencies also require rehabilitation centers to carry specific types of insurance to maintain licensing and operational standards. With comprehensive coverage in place, these facilities can focus on their mission of delivering life-changing care while protecting their financial stability and reputation.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for drug and alcohol rehabilitation centers is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.

Homewood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.

Card image icon

Insurance for Drug and Alcohol Rehabilitation Centers can include:

  • Professional liability covers detox protocols, therapy errors, and medication-assisted treatment (MAT) risks.
  • General liability protects against third-party injuries, altercations, or property damage on-site.
  • Applies to inpatient rehab facilities, outpatient treatment programs, sober living centers, and MAT clinics.
  • Covers physicians, addiction counselors, therapists, nurses, behavioral health techs, and case managers.
  • Limits up to $1M per claim / $3M aggregate; tail and retroactive coverage available

More information

 

Why do Drug and Alcohol Rehabilitation Centers need Insurance?

Despite their essential role in healthcare, drug and alcohol rehabilitation centers face specific challenges that necessitate the need for malpractice or liability insurance. Here are key areas where drug and alcohol rehabilitation centers are vulnerable to being sued for malpractice:

  1. Treatment-Related Injuries or Complications: Patients in rehabilitation may experience physical or psychological complications during detoxification or other treatment processes. If injuries or adverse effects occur due to the treatment provided, centers can be held liable, especially if there was negligence in monitoring or managing withdrawal symptoms.
  2. Failure to Provide Adequate Care: This can include failing to offer necessary medical treatment, inadequate supervision, or not addressing co-occurring mental health conditions, leading to deterioration in the patient’s condition or even harm.
  3. Medication Errors: Incorrect prescribing, administering, or managing medications for detoxification or co-occurring disorders can lead to adverse reactions, overdose, or insufficient management of withdrawal symptoms, making the center vulnerable to lawsuits.
  4. Breach of Confidentiality: The privacy of patients in drug and alcohol rehabilitation is protected by law. Unauthorized disclosure of a patient’s treatment or personal information can lead to legal action for breaching confidentiality.
  5. Failure to Prevent Harm: This includes failing to prevent self-harm, suicide, or harm to others within the facility. Rehabilitation centers have a duty to ensure a safe environment, and failure to do so can result in malpractice claims.
  6. Inadequate Consent Processes: Failing to obtain informed consent for treatments, especially in situations where patients are in a vulnerable or impaired state, can lead to legal issues if patients or their families claim they were not fully informed of the risks and benefits.
  7. Violations of Legal or Regulatory Standards: Non-compliance with state and federal regulations governing the operation of rehabilitation centers, including those related to patient care, facility standards, and staff qualifications, can lead to legal action and financial penalties.

Malpractice or liability insurance provides financial protection against claims of negligence or malpractice, covering legal defense costs, settlements, and judgments. For drug and alcohol rehabilitation centers, this insurance is essential for mitigating the financial and operational impacts of potential lawsuits. 

Westwood insurance brokers works with a number of different carriers to source the most comprehensive protection at the best price. Contact us now for more information.

MedPro Group
Core Specialty
CNA Logo
Travelers Insurance
CFC Underwriting
Applied Underwriters
Tokyo Marine Insurance Group
crum-forster-bw
AIG Insurance
Ironshore
Strategic Comp
MagMutual
Genstar
Beazley
Empro Insurance
Great American Insurance
Skyward Specialty Insurance
Hudson Insurance Group
Huntersure Insurance
MIG Insurance
Kinsale Insurance

Professional Liability Coverage Tailored to Drug and Alcohol Rehabilitation Centers can include:

  • Claims related to improper detox supervision, failure to monitor withdrawal, or errors in medication-assisted treatment.
  • Protection for therapy-related incidents, including individual or group counseling missteps or boundary violation allegations.
  • Legal defense for failure to prevent self-harm, relapse-related harm, or insufficient crisis intervention.
  • Covers clinical staff including physicians, psychiatrists, nurses, addiction counselors, therapists, and behavioral health technicians.
  • Optional endorsements for dual-diagnosis treatment, telehealth addiction services, and aftercare/relapse prevention programs.

General Liability Coverage Tailored to Drug and Alcohol Rehabilitation Centers can include:

  • Third-party bodily injury claims, such as slips and falls, fights between clients, or visitor accidents on-site.
  • Personal and advertising injury protection, covering claims of defamation, misrepresentation, or reputational harm unrelated to PHI.
  • Applies to residential rehab centers, outpatient treatment programs, MAT clinics, and transitional sober living facilities.
  • Policies typically provide limits of $1,000,000 per occurrence / $3,000,000 aggregate, with options for umbrella/excess coverage, prior acts protection, and tail coverage to comply with licensing boards, payer contracts, and state requirements.

What types of Insurance do Drug and Alcohol Rehabilitation Centers need?

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for your drug and alcohol rehabilitation centers center against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects drug and alcohol rehabilitation centers centers and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Speak with an Insurance Professional

Call 947-274-3093 or
Fill Out the Form

Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Drug and Alcohol Rehabilitation Centers at the best price. You can call him or fill out the form and he will get your message directly.