1.A.2.b. Insurance

Rule

Documentation that the owner/operator has current liability coverage and other insurance appropriate to the level of support.

Levels

This rule applies to all recovery residence levels of support.

Guidance

Frequently Asked Questions:

• What kind and how much insurance is “appropriate to the level of support”? The type of insurance a recovery residence should have is determined on a case-by-case basis and can greatly differ across levels and between providers, based on numerous variables. Insurance providers conduct risk assessments before writing a policy.

• Do single family rental insurance and homeowner policies meet the NARR standard? Some subject matter experts have raised doubts regarding single family rental and homeowner policies being enough, especially for higher levels of support. Even lower levels of support that implicitly expect some residents or the House Manager to transport other residents to meetings or the grocery store expose themselves to a liability beyond the coverage of a homeowners policy. Ultimately, it is up to the insurance underwriter to assess the risk and establish the appropriate policy on a case by case basis. If an affiliate is concerned that the provider is under insured, they may ask for a letter from the insurance company documenting they are aware of the types of service being provided.

• Can an Affiliate require a provider to use a specific insurance provider? No. At most, an Affiliate can share a list of insurance providers who have a history underwriting recovery residence policies along with a disclaimer that clearly states that the list is not a recommendation and that providers should get multiple estimates.

• Can an Affiliate ethically receive a commission for recommending that a provider pay for a particular policy or use a particular insurance provider? No. However, an Affiliate can advocate for lower or discounted rates for certified providers, receive an unconditional donation from an insurance provider or accept a fee for service payment from insurance providers (e.g. booth fee at a conference or advertising space in a newsletter).

Evaluation

• Is there documentation that confirms the recovery residence has liability coverage appropriate to the level of support?

• Is the policy current?
• Does the name on the policy match the organization’s name?

Evidence

• Policy and procedure

• Current insurance policy – Based on the services provided, it may include:

  • General liability insurance: slip, trip and fall

  • Professional liability insurance

  • Auto/transportation liability insurance

  • Other

References

• NARR Standard 3.0

• NARR Standard 3.0 Compendium

• What business insurance policy is right for me?

• How is this rule relevant to my accreditation application?