With more Americans seeking help, mental health and drug and alcohol treatment centers are starting to ask about their risks and liabilities. The best way to reduce your treatment center's risk is by having comprehensive business insurance.
Is your center insured? What are the risks if you do not have proper insurance coverage?
Risks of Your Treatment Center Being Uninsured
The most significant risk your drug or alcohol treatment center faces is how you manage the detox process. The detox process poses several safety and liability risks for your employees and patients.
Risk of Malpractice and Negligence Insurance Claims During Detox
Detox is an essential part of the treatment process. However, detox can be challenging and cause mental and physical complications for your patients. Your staff can do everything correctly, and complications can still occur. It is essential for your employees to document everything in case a patient files a malpractice or negligence claim.
You'll want to thoroughly note any preexisting conditions your patients may have as these may affect the detox process. You should also document what substances they've used and for how long to ensure you provide the proper course of treatment.
Due to the risk of complications during detox, such as seizures and infections, you need to have the appropriate number of staff to properly monitor and quickly treat complications as they arise. Many malpractice and negligence insurance claims by patients in treatment centers result from slow response time, medication interactions, and accidental slips and falls.
Risk of Property Destruction
Property destruction is also a common risk during detox. The detox process affects each patient differently. Sometimes an individual who uses substances and is going through the treatment process may become violent due to paranoia or other mental changes. Seizures may also cause a patient to break equipment. While this property destruction is unintentional, you still must replace the broken equipment.
Patients accidentally destroying property during detox isn't your only risk. There's always a risk of severe weather or vandalism. Your facility's roof may be damaged due to strong winds, heavy rains, or snow. Similarly, a burst pipe may cause water damage, or a fire might break out due to faulty wiring or a kitchen accident.
Property damage can be expensive to fix and a financial burden to your treatment facility. In addition, lost, stolen, or broken equipment can also be costly to replace.
Reducing Your Treatment Center's Insurance Risk
No medical professional likes to hear that a patient filed a claim against them. However, everyone working in the medical and treatment field knows there's always a risk. While you can't prevent malpractice or negligence insurance claims or property damage, there are steps you can take to reduce your risk of significant financial loss.
As mentioned above, every part of the treatment process and medications administered should be documented thoroughly. You must also provide the proper training for all your employees and volunteers. Your employees should know what to do when detox complications arise to help prevent malpractice or insurance claims.
Thorough Documentation
As mentioned above, every part of the treatment process and medications administered should be documented thoroughly. Accurate documentation is not just a best practice; it can be a matter of survival for your facility. Recently, we experienced a significant loss of a major insurance company in the detox space, attributed to three tragic death claims within a single year. Among these were one suicide and two overdoses. In each case, the staff had charted they were rounding every 15 minutes, falsifying the documentation. The total payout for these claims was $18 million, due to staff negligence.
This situation underscores the critical need for transparent and honest record-keeping. Ensuring documentation accurately reflects the care provided not only protects your facility from legal and financial repercussions but also upholds the integrity and safety of the patients entrusted to your care.
Proper Training
You must also provide the proper training for all your employees and volunteers. Your employees should know what to do when detox complications arise to help prevent malpractice or insurance claims.
Obtain Business Insurance Coverage
The best way to prevent significant financial loss and protect your employees, volunteers, and treatment center is by obtaining business insurance. There are four main types of insurance that can help your treatment facility:
- Property insurance: Can help cover the cost of expensive repairs, restorations, or replacing stolen or broken equipment.
- General liability: Can protect your treatment center from financial loss. Provides coverage for you, your employees, and your business from common liability claims.
- Professional liability: Can protect your doctors, nurses, therapists, counselors, and other employees if a patient or their family member files a malpractice or negligence claim.
- Sexual abuse and molestation: Typically covers legal defense costs, settlements, and damages arising from claims of sexual misconduct or abuse within a business. It provides financial protection against allegations involving employees, volunteers, or clients.
- Workers compensation: Provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work.
Choosing an Insurance Advisor Who Understands Your Needs
Your treatment center has unique risks. Partnering with an insurance advisor who understands your business can help ensure you find a comprehensive insurance plan that provides optimal protection.
Amber Harper, a knowledgeable member of our insurance team, focuses on the treatment industry and thoroughly understands its nuances. She's worked in treatment and now works hard to make sure treatment centers are protected. She'll work with you to understand your unique needs and find the right coverage plan to leave you and your employees protected.
