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.

Insurance for Drug and Alcohol Rehabilitation Centers can include:

Bodily Injury Coverage
Property Damage Coverage
Premises Liability including slips, trips, and falls
Completed Operations Coverage
Personal and Advertising Injury including Defamation (slander or libel)
Medical Payments Coverage
Legal Defense Costs
Legal defense expenses covered in addition to liability limits
Abuse and Molestation (SAM) Coverage (limited coverage)

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:

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.
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.
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.
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.
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.
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.
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.