When drug rehab patients are hurt, the liability insurance providers for facility owners would usually pay settlements.

However, owners and parent corporations may have to use their own funds to pay in some cases.

When the negligence that caused an accident wasn’t covered by an insurance company (e.g., criminal acts, fraud, punitive damages), facility owners would have to cover any settlement or judgment for the victim and the victim’s family.

Liability Insurance Coverage in Drug Rehab Facility Injuries

Patients enter California drug treatment centers to find a drug-free, monitored environment to help support recovery. Unfortunately, despite what clinics promise, staff members can get careless.  They can cause even more harm to vulnerable Substance Use Disorder (SUD) sufferers.

Their negligence can allow drugs to enter a facility. Their failure to monitor patients can allow an overdose to occur. A mistake in administering medication can cause further harm. See: Why rehab drug use isn’t your loved one’s fault

These and other careless acts can lead to injuries, and injury claims filed against the companies and corporations behind rehab centers.

These businesses will have liability insurance, and often it’s the insurers who will pay out a settlement to victims and their families.

• Insurers will usually cover the medical bills built up by the victim.
• They’ll cover lost paychecks while victims can return to work.
• They may provide support for the pain victims experience.
• They can cover the mental trauma caused by a bodily injury.

But there are situations where insurers will refuse coverage, and clinic owners and operators may have to fork over support.

When Drug Treatment Centers Have to Pay

Injuries would have to meet the terms of the insurance policy to be eligible for compensation.

Fortunately, this shouldn’t be something for victims and their families to worry over. When liability insurance companies won’t cover damages, it’s usually up to the corporate owners to provide funds from corporate assets.

Drug treatment centers can be liable for paying out a settlement in these and other situations:

• The limit of an insurance policy is reached (especially likely when a higher-value wrongful death case is involved)
• An injury is caused by something not covered by the insurer
  • A criminal act is involved
  • Staff abuse was involved
  • Fraud is involved
  • Accidents caused by intentional acts
• Another type of damage not covered in the policy is involved

Who Pays Punitive Damages in a Rehab Clinic Injury Case?

In California, punitive damages would usually have to be paid by the company or corporation. The fines couldn’t be passed along for liability insurance providers to cover.

Punitive damages are meant to punish facilities for showing gross negligence in their care of patients. It’s why companies are usually forced to pay them.

These fines go beyond the settlement money awarded to victims, but the victims keep any penalties that are paid. Keep in mind that these penalties aren’t issued in every rehab negligence case.

Trusting Your Case to a Rehab Injury Attorney

Patients and their families can seek support after an injury in a rehab clinic that staff members should have prevented. Unfortunately, critical support for victims isn’t guaranteed.

Facilities can employ lawyers and insurance adjusters to look for ways to help the company escape blame. They can try to blame victims for their injuries. They may also question how badly the victim was hurt, hoping to get away with offering less in a settlement.

A skilled California Drug Rehab Negligence Lawyer stands up for victims. Our lawyers collect the necessary evidence to hold a facility and its insurers fully accountable.

Contact Us if you Suspect a Rehab Facility Hurt Your Loved One.

Attorney Martin Gasparian offers a free, confidential consultation to victims and their families after an accident at a California rehab facility.

Call us today or fill out a free case review form.

There’s no obligation for this meeting. But remember, if you find you need our help, we charge nothing up front. We are only paid if your claim is successful. Then the lawyer’s fee comes out of a settlement a facility must pay you.