When it comes to finding insurance for residential substance use disorder programs, the landscape can be challenging. The distinction between for-profit and non-profit organizations plays a crucial role in determining available insurance options. Many insurers shy away from for-profit programs due to the high cost of claims and the stringent expectations for the level of care, which further drive up claim expenses. Here, we’ll explore the best insurance companies for the substance use disorder programs as we enter 2025.
Insurance Companies for For-Profit Residential Substance Use Disorder Programs
For-profit residential substance use disorder programs face a tougher market when seeking insurance coverage. However, a few companies stand out for their commitment to this space and their ability to provide quality coverage:
Selective Selective continues to be a reliable option for for-profit organizations. They’ve maintained their presence in this sector and offer comprehensive coverage tailored to the unique needs of substance use disorder programs. Depending on your operations, they can be an all encompassing solution.
Addiction Treatment Providers Program Known for its long-standing commitment to this field, the Addiction Treatment Providers Program consistently delivers excellent service and coverage. Their deep understanding of the industry's challenges makes them a top choice.
PMA (through RPS Healthcare Providers) PMA, a program offered through RPS Healthcare Providers, has shown resilience and dedication in supporting for-profit SUD programs. They remain a strong contender for insurance needs in 2025.
Irwin Siegel Irwin Siegel is another trusted name in the insurance market for for-profit substance use disorder programs. They’ve built a reputation for their expertise and specialized offerings. They are consistent and rigorous in their underwriting. The upside of this approach is that while other programs have experienced instability in their underwriting performance, Irwin Siegel has been remarkably consistent.
Insurance Companies for Non-Profit Residential Substance Use Disorder Programs
Non-profit organizations generally have more insurance options available to them. In addition to the companies listed above, which also insure non-profits, there are several other excellent choices tailored to smaller residential programs:
USLI (United States Liability Insurance Group) USLI is a solid option for smaller non-profits. They’ve built a reputation for providing affordable, reliable coverage to organizations with limited resources. My rule of thumb is they are great up until the organization buys a building or a vehicle.
Alliance for Nonprofits The Alliance for Nonprofits is a steady and dependable choice for non-profit programs. They specialize in working with organizations dedicated to community service and substance use treatment. One of the unique parts about them is they are a nonprofit themselves. Their board is constituted of the directors of other nonprofit organizations. I have found that while their liability and auto insurance can be very competitive, their property rates are not very competitive.
Guide One Insurance Guide One stands out for its focus on mission-driven organizations. They offer robust insurance solutions specifically tailored to non-profits. Their legacy is with their church program. They have successfully expanded their mission into providing insurance for nonprofit social services. Their product offering is robust. One of their unique identifiers is they can sometimes offer workers compensation alongside the property, liability, and auto insurance. This is unique.
Philadelphia Insurance Companies Philadelphia Insurance is another excellent choice for non-profits. They provide comprehensive coverage and have a strong history of working with residential programs. They are very large and very financially sounds. They have a history of successfully underwriting nonprofits.
Key Differences Between For-Profit and Non-Profit Insurance Options
While there are overlaps in the insurers serving both for-profit and non-profit organizations, the key difference lies in the number of options available. Non-profit programs benefit from a broader range of insurers willing to cover them, partly because the claims in this sector tend to be less expensive compared to their for-profit counterparts. Litigation trends have been particularly unfriendly to organizations that provide care in the years leading up to 2025.
Insurers like Guide One and Philadelphia Insurance cater specifically to non-profits, offering tailored solutions that may not be available to for-profit organizations.
For-profit programs, on the other hand, must rely on a smaller pool of insurers. Despite the limited options, companies like Selective and the Addiction Treatment Providers Program have demonstrated a strong commitment to supporting these organizations, ensuring they have access to the coverage they need.
Key Differences Between Residential and Outpatient Programs
Residential Substance Use Disorder Programs have a very tight marketplace right now. If your business does not have a residential component and is only outpatient, there are a few other options that you can consider.
Cincinnati Cincinnati's Human Service insurance product is comprehensive and can address your liability and auto insurance needs. They do not like residential programs.
HPSO HPSO views outpatient as a form of counseling. Especially for smaller businesses, this can be an excellent option for liability insurance.
Final Thoughts
Navigating the insurance market for residential substance use disorder programs can be complex, but understanding the key players in this space makes the process much easier. For-profit programs should consider Selective, the Addiction Treatment Providers Program, PMA through RPS Healthcare Providers, and Irwin Siegel. Non-profit organizations have additional options like USLI, Alliance for Nonprofits, Guide One, and Philadelphia Insurance to meet their needs.
Knowing who the insurance companies are is only one part of the battle. It’s still important to present your organization skillfully and in a way that an underwriter will be interested. In my experience, this requires a skilled an experienced agent.
For more ideas on what that should look like, check out this blog post.
If you have questions about your program or would like assistance reviewing your insurance options, feel free to reach out. Contact information is available on the channel page. And if you found this article helpful, please provide your email address to be updated when new content comes out!
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