Sober Living Home Insurance Coverage Checklist
The coverages a sober living home business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for sober living homes and recovery residences. Priorities reflect typical exposure for this class; confirm against the program's actual level, population, and services.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Professional Liability | Responds to claims that the operator failed to supervise, enforce rules, or respond to relapse — the core theory in overdose and suicide suits. Needed even with no clinical services. | Core | |
| Commercial General Liability | Covers premises injuries to residents and visitors (falls, fire injuries). Check whether it carries a professional-services exclusion. | Core | |
| Abuse & Molestation | Covers allegations of sexual or physical abuse by staff, managers, or residents. Most GL policies exclude it unless added back. | Core | |
| Commercial Property / Dwelling | Covers owned houses and contents. Standard homeowners policies typically do not cover a home run as a business. | Prevalent | |
| Business Income / Loss of Rents | Replaces resident-fee income if a fire or other covered loss makes a house unlivable. | Prevalent | |
| Umbrella / Excess Liability | Adds limits above GL, professional, and auto — wrongful-death verdicts can exceed primary limits. | Prevalent | |
| Commercial Auto / Hired & Non-Owned | Covers vans or staff cars used to drive residents to meetings, jobs, or court. | Situational | |
| Workers' Compensation | Required in most states with employees; may also apply to house managers paid in free rent. | Situational | |
| Employment Practices Liability (EPLI) | Covers wrongful termination, harassment, and discrimination claims by staff. | Situational | |
| Directors & Officers (D&O) | Protects board members of a nonprofit operator, and owners, from management-decision claims. | Situational | |
| Cyber / Privacy Liability | Covers breach of residents' intake, testing, and health information. | Situational |
The coverage gap most often missed
The most commonly missed coverage for this class is professional liability. Many operators decline it because they provide no counseling or medical care. But the claim that follows a resident's overdose or suicide alleges failure to monitor, to enforce house rules, or to respond in time — and many general liability policies exclude professional-services claims outright, so the operator may not even get a defense. The second gap is abuse and molestation: vulnerable adults, peer house managers, and shared living quarters create the exposure, and most GL forms exclude it unless it is added back by endorsement.
Send us the checklist and we'll review your sober living home coverage line by line, then market it across multiple carriers that compete for your account.
Related: Sober Living Home Insurance · Sober Living Home Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a sober living home business need?
The core coverages for a sober living home business are Professional Liability, Commercial General Liability, Abuse & Molestation. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my sober living home coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.