When many recovery programs first start out, one of the most common places they try to save money is on their auto insurance policy by selecting “state minimum” limits. In their heads, they have checked the box: “We have insurance.”
But there is a massive difference between having a policy and being properly protected. Daryl Henry, Managing Partner at Bitner Henry, and Chris Graham, a specialist in recovery center risk management, recently sat down to discuss the hidden, non-financial costs of a claim when your limits aren’t high enough.
Should Your Recovery Program Buy State Minimum Limits on Auto?
Chris Graham shared a sobering story of a recovery home that purchased their auto insurance online with state minimum limits.
“They knew in the back of their head what they needed to do, but they didn’t just take the time to do it,” Graham says. Eventually, a vehicle from the program hit a pedestrian. While the injuries didn’t seem life-threatening, the legal fallout was massive.
Because the insurance policy only offered $25,000, the injured party’s attorneys rejected the settlement and went after the operator’s personal assets and the organization itself. “It dragged out for over two years,” Graham explains. “The stress and talking to the operator… it was just tremendous. They had to testify in court, pay legal fees, and face the possibility of paying $250,000 out of their own pocket.”
“How many sleepless nights do you think that operator had knowing that this lawsuit was hanging over their head?” Daryl Henry asks. “Probably 700. One for every night this dragged on.”
A lawsuit is a drain on your energy, your focus, and your staff’s morale. While the jury in that specific case eventually favored the defendant, the “win” came after two years of agonizing uncertainty.
In addition, in the recovery community, an accident rarely involves just one person. If you have a van full of residents and get into even a minor fender bender, you aren’t facing one claim, but you might be facing four, five, or six.
“I can’t tell you how many accidents I’ve seen where at the scene… there’s nobody hurt. They exchange information, no problems,” says Daryl Henry. “And then two weeks later, everybody that was in your program has called an attorney and says, ‘My neck hurts.'”
If you only have $50,000 in total coverage for an accident, and four people file claims, you are out of money before the first deposition is even over.
Why Aren’t The State Limits Enough?
As we look at the landscape of 2026, the cost of litigation and medical care is only going up. Buying insurance online or settling for the bare minimum isn’t a “business save”- it’s a gamble.
Chris Graham’s parting advice is simple: “Don’t take shortcuts. Take the time and slow down… make sure you’re properly covered.”
Your mission is too important to risk on a “minimum” policy. Properly insuring your vehicles ensures that when the unexpected happens, you can focus on the people you serve, not the lawsuit that could shut you down.
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