Why verify residential treatment center insurance? Because uninsured residential treatment centers (RTCs) put your child’s safety—and your family’s finances—at catastrophic risk. Imagine your teen is injured in a car accident or reckless activity, only to learn the facility lacks insurance to cover their medical bills. Without proper coverage, parents could face lawsuits, bankruptcy, or lifelong debt. This guide reveals how to spot uninsured RTCs, Utah’s legal loopholes, and critical questions to ask before RTC enrollment. 

Does Utah Require RTCs to Carry Insurance? State Laws Explained

What’s Legally Required?

• Commercial Auto Insurance: Mandatory if transporting clients.

• Workers’ Compensation: Mandatory for staffed facilities.

• General/Professional Liability Insurance: Not required—but ethical RTCs carry it.

Gaps in Utah’s Laws

Utah RTCs can legally operate without liability coverage, leaving families vulnerable. Most accredited facilities like Solstice RTC or Embark Behavioral Health voluntarily carry full policies to protect clients. 

1. No Liability Insurance Mandates

Utah’s Department of Human Services (DHS) licenses RTCs but does not require general liability or professional liability insurance. This means facilities can legally operate without coverage for:

• Negligent supervision (e.g., staff failing to prevent self-harm).

• Property damage (e.g., a teen vandalizing another client’s belongings).

• Abuse allegations (e.g., lawsuits against staff for misconduct).

Why This Matters:
A 2023 report by the Salt Lake Tribune found that 27% of Utah RTCs lack general liability insurance, leaving families to shoulder legal and medical costs if accidents occur. For example, in 2022, an uninsured Provo RTC shut down after a teen’s family sued over a horseback riding injury, leaving parents to fund $240,000 in surgeries.

2. Inadequate Oversight of “Therapeutic” Activities

Utah’s lax laws allow RTCs to classify high-risk activities (e.g., off-roading, equine therapy) as “therapeutic” without insurance mandates. RTCs have argued that many activities are part of “adventure therapy,” even though:

• No helmets were worn.

• Staff lacked off-road or boat driving training.

• The activity wasn’t documented in treatment plans.

Parent Tip:
Ask for written proof that risky activities are covered by insurance and led by certified professionals. Accredited RTCs like Solstice RTC disclose these protocols upfront.

3. Reliance on Accreditation (Which Many RTCs Skip)

While Utah doesn’t require insurance, accrediting bodies like CARF (Commission on Accreditation of Rehabilitation Facilities) or JCAHO (Joint Commission) do mandate it. However:

• Only 15% of Utah RTCs are CARF/JCAHO accredited.

• Non-accredited facilities often cut costs by skipping liability policies.

Case Study:
A 2024 investigation by KUTV revealed that unaccredited RTCs account for 89% of Utah’s facility-related lawsuits, often due to uninsured incidents like assaults or accidents.

4. Parents Bear the Burden of “Due Diligence”

Utah places the responsibility on families to verify insurance—a nearly impossible task when:

• Facilities obscure coverage gaps in contracts.

• State databases don’t track uninsured RTCs.

• Insurance terms like “comprehensive liability” are poorly defined.

Example:
One St. George mother discovered her daughter’s RTC had lapsed insurance after a staff member caused a car accident. The facility’s contract vaguely stated they “maintain appropriate coverage,” which turned out to be a $10k policy covering only minor property damage.

5. How Other States Compare

• California: Requires $1M+ liability insurance for RTC licensure.

• Texas: Mandates malpractice and auto insurance.

• Colorado: RTCs must prove “financial responsibility” (e.g., insurance or bonds) to operate.

Utah’s lack of similar safeguards makes it a haven for underinsured facilities prioritizing profit over safety.

The Financial Domino Effect on Families

Uninsured RTC risks aren’t hypothetical—they’re catastrophically real:

• Medical Bills: A single ER visit for a concussion can cost $5,000+ without insurance.

• Legal Fees: Defending against lawsuits (e.g., if your teen injures another client) averages $250/hour.

• Lost Wages: Parents often take unpaid leave to manage crises, compounding financial strain.

The Essential RTC Insurance Checklist for Parents

1. Insurance Verification Questions

• ❒ “Can you provide proof of commercial auto insurance?”

• ❒ “Do you have professional liability coverage for staff negligence?”

2. Transportation Safety Red Flags

• ❒ “Are helmets/seatbelts required for off-road activities?”

• ❒ “Do you use personal or commercial vehicles for teen transport?”

3. Staff Accountability & Incident History

• ❒ “How are staff trained to prevent accidents?”

• ❒ “Have employees been disciplined for safety violations?”

What Happens If an RTC Lacks Insurance? Real Scenarios

Scenario 1: Your Child is Permanently Disabled

An uninsured RTC faces bankruptcy after a lawsuit, leaving you to fund $1M+ in lifelong care for spinal injuries or brain damage.

Scenario 2: Your Family is Sued After a Car Crash

The RTC’s personal auto policy denies coverage, forcing your insurance to pay—or your assets to be seized.

How to Protect Your Family: 4 Action Steps

1. Demand Proof of Insurance

Verify policies directly with the insurer—don’t take the RTC’s word.

2. Report Uninsured Facilities

If the RTC is located in Utah, contact Utah’s Office of Licensing (801-538-4242) to file complaints.

3. Choose Accredited RTCs

Accreditation organizations set higher standards than only state licensed RTCs. Often requiring appropriate commercial and business insurance. RTCs like Huntsman Mental Health Institute or Turning Winds for example are accredited and prioritize insurance and safety.

4. Consult a Liability Lawyer

Ensure waivers don’t shield the RTC from gross negligence.

Bottom Line: Insurance is Non-Negotiable

Never enroll your child in an RTC that can’t prove commercial auto, liability, and workers’ compensation insurance. Use this checklist to avoid becoming the next victim of financial ruin—or worse.

Sources and Citations: 

1. Utah Department of Human Services. (n.d.). Licensing requirements for residential treatment centers. Retrieved from https://dhs.utah.gov

2. Utah Office of Licensing. (2023). Residential treatment center compliance guidelines. Retrieved from https://ol.utah.gov 

3. American Bar Association. (2022). Liability risks for uninsured businesses. Retrieved from https://www.americanbar.org

4. Huntsman Mental Health Institute. (2023). Best practices for RTC safety and insurance. Retrieved from https://healthcare.utah.edu/hmhi

5. Solstice RTC. (2024). Why accredited RTCs prioritize insurance coverage. Retrieved from https://www.solsticertc.com

6. Embark Behavioral Health. (2023). Insurance protocols for teen residential treatment. Retrieved from https://www.embarkbh.com