Alcohol and Drug Rehab
Addiction has many forms that can be overcome with proper support, treatment, detox, rehab and recovery.
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Insurance policy highlights can include:
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Defense outside limits
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Separate or shared limits for psychiatrists, psychologists and other MD/mid-levels professionals
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Industry leading broadening forms
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Broad definition of who is an insured
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Underwriting expertise with limited customer distribution
- Ability to provide admitted and non-admitted terms
- Coverage can be written claims-made or occurrence
- Risk management services
- Separate limits for general liability, professional liability and abuse and molestation
- In-house claims experts
Coverages can include:
- Professional liability
- General liability
- Abuse and molestation
- Hired and non-owned auto
- Property
Additional coverages available:
- Blanket additional insured
- Cyber
- Crime
- Directors and officers/Employment practices
- Umbrella
Markets
Claim Examples
Professional Liability
A counselor at a drug and alcohol rehab was providing counseling services to a female who was suffering from alcohol abuse. The counselor failed to follow proper procedures, missed sessions with the client and failed to keep proper notes on treatment. The family sued the counselor and organization for professional errors when the female developed several other addictions and overdosed.
General Liability
A client attending a drug rehab facility broke a chair that was loose when he sat down on it. He fell to the floor and hit his head on a nearby radiator, requiring stitches.
Abuse and Molestation
A man who is volunteering for an addiction recovery center for drug and alcohol receives consent to take a girl he is counseling on a trip. During the trip, the girl is sexually molested. The girl’s family sues the organization’s abuse and molestation coverage for bodily injury and mental duress.
Employment Practices
An employee at an addiction treatment center receives numerous sexual advances from another staff member. The employee sues the organization’s employment practices policy for sexual harassment.
Directors and Officers
A donor made a large contribution to a local alcohol and drug rehab requesting that the money be used to enhance the building’s facilities. The board instead votes to use the money to buy a new car for the director. The donor files suit alleging misappropriation of funds.
Property
A fire breaks out as a result of cooking in the common kitchen area of a drug rehab, which results in extensive smoke and heat damage to both the building and its contents, and forces the drug rehab administration to seek an alternative facility for a period of one month. The drug rehab suffers a loss of $75,000 in property damage and extra expenses.
Hired and Non-Owned Auto
Jessica is a staff member working for an alcohol rehab that provides counseling. While Jessica is driving a client to an event, she fails to yield at a stop sign and strikes another vehicle. The client sustains a severe bodily injury and sues Jessica’s personal auto policy. It turns out that the claim amount will ultimately exceed Jessica’s personal auto limits, and a secondary claim is made against the hired and non-owned policy of the alcohol rehab.