It is common for rehabilitation facilities, especially residential treatment centers, to provide patient transportation services for in-patients. Many outpatient clinics also offer transportation assistance to help remove barriers to treatment and improve overall patient satisfaction.
However, accidents involving business-owned or leased vehicles can lead to significant legal expenses, judgments, and settlements that may financially impact the organization. Transporting patients—especially those with physical disabilities, substance use disorders, or mental health conditions—can also increase liability risks for the rehab center.
Rehabilitation Facilities Auto Liability helps protect your business if you or an employee is involved in a motor vehicle accident while transporting patients in a covered vehicle.
This type of commercial auto insurance typically covers third-party claims involving:
- Bodily Injury
- Property Damage
What Is Rehabilitation Facilities Auto Liability?
Rehabilitation Facilities Auto Liability insurance is a form of commercial auto coverage designed specifically for rehab centers that use vehicles to transport patients. Whether your facility owns, leases, or rents vehicles for this purpose, this policy helps protect against financial loss if an accident occurs during business operations.
Who Needs This Coverage?
Any rehabilitation facility that regularly transports patients should consider auto liability coverage. This includes:
- Inpatient and residential treatment centers
- Outpatient rehab clinics offering transport assistance
- Facilities using staff vehicles or third-party drivers for patient transport
What It Typically Covers
Rehabilitation Facilities Auto Liability insurance commonly includes:
- Bodily Injury Liability: Covers medical expenses and legal costs if someone is injured in an accident involving your vehicle.
- Property Damage Liability: Pays for damage to others’ property caused by your vehicle.
- Legal Defense Costs: Helps cover attorney fees and court costs associated with covered claims.
Common Exclusions and Limitations
While this coverage offers important protection, it may not cover:
- Intentional acts or reckless driving
- Vehicle damage (unless physical damage coverage is added)
- Transport using non-approved vehicles or drivers
- Injuries to employees (covered under workers’ compensation)
Factors That Influence Cost
Premiums for auto liability insurance vary depending on factors such as:
- Number and type of vehicles used
- Driving records of staff
- Frequency and distance of patient transport
- Claims history and coverage limits
Proof of Insurance and Compliance
Many states require proof of commercial auto insurance for facilities that transport patients. Even if not legally mandated, having proper coverage can help your facility meet licensing or accreditation standards and reduce legal exposure.
How to Get a Quote
Protect your rehab center and gain peace of mind with the right auto liability coverage. Get a quote today to learn more about policies tailored to your facility’s needs.
Frequently Asked Questions
Does Rehabilitation Facilities Auto Liability cover accidents involving staff-owned vehicles?
Only if hired and non-owned auto coverage is included in your policy. This extends protection to vehicles your business doesn’t own but uses for work purposes.
Is this coverage required by law?
Requirements vary by state and facility type. However, many rehab centers carry this coverage voluntarily to reduce liability and meet licensing requirements.
Can I add physical damage coverage to protect my vehicles?
Yes. While auto liability covers damage to others, you can add physical damage coverage (collision and comprehensive) to protect your facility’s own vehicles.
What if we use a third-party transportation service?
If you outsource transport, ensure the vendor carries adequate insurance. However, your facility may still need coverage depending on contractual obligations or shared liability.
Are volunteer drivers covered?
Volunteer drivers may be covered if they are listed on the policy and using approved vehicles. Always check with your insurer to clarify coverage limits and requirements.
Still have questions? Talk to a local insurance expert.