Drug and Alcohol Rehabilitation Centers Insurance

Drug and Alcohol Rehabilitation Centers Insurance

Westwood will work with you to ensure your drug and alcohol rehabilitation center clients have the best insurance coverage for every threat they could face.

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

More Information

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance (E&O) and medical malpractice insurance, protects your business against claims of negligence, malpractice, errors, and omissions which may have occurred during the fulfillment of a professional service.

More Information

Directors and Officers Liability (D&O) insurance

D&O insurance (Directors and officers liability insurance), shields the personal assets of company directors and officers, and where necessary, their spouses, from claims which could arise as a result of the decisions they made and actions they took within the scope of their regular duties.

Cyber insurance

Cyber liability insurance covers the financial costs associated with a breach of your cyber security, such as a ransomware attack. It also covers first party costs including event management, data restoration, financial costs to third parties, network interruption, and cyber extortion.

More information

HNO Insurance

HNOA, (hired non-owned auto insurance) is designed for organizations who regularly hire vehicles or require employees to use their own vehicles in the course of their work. In the case of an accident where your employee was liable, it could cover physical damage to that other person’s vehicle, medical expenses, the cost of hiring an attorney to defend your business.

Workers’ Comp. Insurance

Workers’ compensation insurance covers your employees for workplace injuries or illness. It provides them with medical and wage benefits.

This coverage is mandated by each state, with the wage and medical benefits varying from state to state. Workers compensation also protects business owners from civil suits by workers who become injured on the job.

Employment Practices Liability

Employment practices liability insurance (EPL insurance or EPLI), covers employers (PDF) against claims made by employees for:

  • Discrimination (based on sex, race, age or disability, for example)
  • Wrongful termination
  • Harassment
  • Failure to promote and other employment-related issues
Environmental Liability insurance

Environmental Liability insurance is liability insurance specifically designed to protect environmental liabilities. This is a specialized form of general, commercial liability insurance that provides financial protection against litigation and clean-up costs resulting from claims of injury or damage caused by pollution, contamination or hazardous waste disposals. 

Property Insurance

Property Insurance covers unexpected damage or loss to property. The policy can be purchased to cover both structures and contents, which are separate policies in many cases. Property Insurance covers physical structures, not land. Medical facilities and aged care facilities need property insurance to cover the real property and all fixed items such as furniture, medical equipment, art works and tapestries.

Crime Insurance

Crime Insurance covers the insured party a reimbursement if their property is damaged due to a crime. Crime Insurance usually has a huge range of options and comes in different forms. It can be either a rider that can be attached to the existing insurance policy, or it is available as a completely separate product.

Auto Insurance

Auto insurance is  a type of liability insurance coverage, usually mandated by law, for all mechanically propelled vehicles. It provides protection against losses resulting from traffic accidents and against liability that could also arise therefrom. A medical or aged care facility would typically have auto insurance on their fleet of vehicles as  well as for any vehicles transporting patients to and from the facility.

Fully/Partially Funded insurance

Partially Funded insurance gives facilities the opportunity to pay a set premium for, and then in turn is  partially covered for specific risks.

Fully Funded Insurance allows facilities to pay premiums to have coverage against all risks. In return, if they are unfortunate enough to incur any of the covered loss or injury, they are reimbursed their insurance policy amount.

Excess and umbrella coverage

Excess coverage provides an additional layer of protection over and above what an underlying policy provides. It applies to a single policy only.

An umbrella policy on the other hand, provides additional liability coverage over and above what is provided by a number of underlying policies.

Sourcing the right  insurance for drug and alcohol rehabilitation centers is essential 

Drug and alcohol rehabilitation centers insurance is essential to help them with challenges they face in their efforts to help individuals recover from addiction. These include:

  1. A Lack of funding: Many rehabilitation centers struggle to secure funding to provide high-quality treatment and care to their patients.
  2. Stigma: Despite progress made in reducing stigma around addiction, it still exists and can prevent individuals from seeking help.
  3. Staffing shortages: Rehabilitation centers often struggle to attract and retain qualified staff, which can impact the quality of care provided.
  4. Access to treatment: Many people face barriers to accessing treatment, such as long wait times, limited availability of services, and inadequate insurance coverage.
  5. Relapse: Addiction is a chronic disease, and relapse is common. Rehabilitation centers must have strategies in place to help patients manage and prevent relapse.
  6. Co-occurring disorders: Many individuals with addiction also have co-occurring mental health disorders, which can complicate treatment and require specialized care.
  7. Treatment effectiveness: There is no one-size-fits-all approach to addiction treatment, and not all treatments work for everyone. Rehabilitation centers must continually evaluate and adjust their treatment programs to ensure they are effective for their patients.

Overall, drug and alcohol rehabilitation centers must navigate a complex set of challenges to provide effective care and support to individuals struggling with addiction. Without adequate insurance, they are open to all kinds of litigation.

Drug and alcohol rehabilitation centers should have several types of insurance coverage to protect themselves from liability and other risks. Here are some of the common insurance policies that rehabilitation centers should consider:

  1. General Liability Insurance:This policy covers the rehabilitation center against claims of bodily injury, property damage, or personal injury caused by the center’s operations.
  2. Professional Liability Insurance: Also known as medical malpractice insurance, this policy provides coverage for claims of negligence, errors, or omissions by the center or its staff in providing treatment to patients.
  3. Property Insurance: This policy covers damage or loss to the rehabilitation center’s buildings, equipment, and other property due to fire, theft, or other covered perils.
  4. Workers’ Compensation Insurance: This policy provides coverage for injuries or illnesses suffered by the center’s employees while on the job, including medical expenses and lost wages.
  5. Cyber Liability Insurance: This policy provides coverage for data breaches, cyber attacks, and other cyber-related risks that could result in the theft or exposure of patients’ personal information.
  6. Umbrella Insurance: This policy provides additional liability coverage beyond the limits of other insurance policies, offering extra protection in case of a catastrophic event or large claim.

It’s important to note that insurance needs may vary depending on the specific type of rehabilitation center and the services it provides. Rehabilitation centers should work with a knowledgeable insurance broker or agent working with an organization like Westwood to identify their unique insurance needs and develop a comprehensive insurance program that adequately protects against liability and other risks.


advice for commercial agents approaching drug and alcohol rehabilitation centers

A commercial insurance agent should approach the appropriate person in a drug and alcohol rehabilitation center to discuss their insurance needs. This may be the center’s owner, director, or someone responsible for managing insurance and risk management.

To have a productive conversation with the rehabilitation center, the commercial insurance agent should come prepared with the following information:

  1. Knowledge of the Rehabilitation Center: The agent should have an understanding of the rehabilitation center’s services, the number of patients it treats, and its location.
  2. Insurance Requirements: The agent should be aware of the minimum insurance coverage required by the state, as well as any contractual obligations the rehabilitation center has with third-party payers or vendors.
  3. Risk Factors: The agent should understand the specific risks faced by the rehabilitation center, such as the potential for malpractice claims, liability claims, or damage to the facility.
  4. Current Insurance Program: The agent should review the rehabilitation center’s current insurance policies to identify gaps in coverage and areas where additional insurance may be needed.
  5. Recommendations: Based on the information gathered, the agent should provide recommendations on insurance coverage that could help the rehabilitation center better manage risk and protect its patients, employees, and assets.

Overall, the agent should approach the rehabilitation center with a goal of understanding their unique needs and developing a comprehensive insurance program that provides adequate coverage and protection. Talk to Michael Richards for advice and support for approaching Drug and Alcohol Rehabilitation Centers.

Contact Michael Richards now

Michael Richards, Westwood team member

Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:

we've got you covered

General Liability Insurance

Protecting healthcare organizations against increasingly crippling litigation.

Professional Liability Insurance

Protecting medical professionals against increasingly crippling litigation.

Medical Malpractice Insurance

Protecting medical professionals against increasingly crippling litigation.

Cyber Liability Insurance

Protecting healthcare organizations & professionals against cyber attacks.

please feel free to contact us 24/7


Click here



insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

insurance for physicians

The different types of insurance for physicians includes medical malpractice insurance, professional liability insurance, errors and omissions insurance, an umbrella policy, and professional indemnity. As a physician, you should have access to all of these types of insurance.