Drug Rehab Centers and Need for D&O Insurance

Drug rehab centers provide a valuable service to our communities. Alcohol and drug rehabilitation facilities provide medical assistance and behavioral and nutritional counseling to individuals who are in need of substance abuse services. They help individuals with drug dependency issues find a way to cope with their issues, and hopefully, create an outlet where they can become part of a group of like-minded individuals all hoping to find solutions to their problems and begin the healing process.

Running a non-profit business is no easy task. Oftentimes, there are unique insurance exposures that can be detrimental to the financial stability of the business. Non-profit companies typically require the use of volunteers and a board of directors, which can present challenges when physical or financial injuries occur.

The main reason that healthcare organizations such as these need to have more specifically-tailored Directors and Officers (D&O) insurance than non-healthcare entities is because they’re highly regulated and face a multitude of exposures unique to their field. In addition, they must also manage a potentially serious exposure that’s not unique to healthcare, but nonetheless is more prevalent in the healthcare field than in most segments of the economy, and that is antitrust violations.

This has become one of the more significant exposures to many healthcare organizations, and those involved in drug and alcohol rehabilitation should greatly consider the advantages of obtaining customized coverage in the event they find themselves accused of antitrust violations.

Accusations carry some fundamental concerns

Healthcare organizations, to some extent, must perform a balancing act that most other companies in America do not. They want and need to be successful, to some degree, and must turn a profit in order to survive, but they can’t become too dominant in their geographic region or they may be accused of creating a monopoly and violating antitrust laws. A healthcare organization can be accused of antitrust violations, especially when dealing with more specialized services and products that are not widely available.

These are real concerns for drug rehab centers and the people who run them. Insurance to protect directors and officers of these companies is vital to their ability to provide the services that this Country greatly needs.