Insurance is the first item an AARR reviewer verifies, before anyone reads a single policy manual. It is also the item that stalls more applications than any other. Not because operators are uninsured, but because the proof they send does not show what the standard asks for.
This article explains what NARR Standard 3.0 actually requires, what AARR accepts as documentation, what does not count, and how to ask your agent for the right certificate in one phone call.
What NARR Standard 3.0 requires
The requirement sits in the Administrative and Operational domain of the standard, under Core Principle A, "Operate with integrity," Standard 2, item b:
Documentation that the owner/operator has current liability coverage and other insurance appropriate to the level of support.
That single sentence applies to every level, I through IV. Notice what it does not say. NARR sets no dollar limit, names no carrier, and prescribes no policy form. It requires two things: current liability coverage that is documented, and whatever additional insurance the level of support makes appropriate.
AARR reviews to that standard. We record the limits your certificate shows, confirm the coverage is in force, and confirm it covers the right thing. We do not grade limits or recommend carriers.
What AARR accepts as proof
A recovery residence is a business, and the liability policy has to cover the organization that operates it, not only the building. The document that shows this is a current ACORD 25 Certificate of Liability Insurance, or the policy declarations page. Either one must show all five of the following.
1. Commercial general liability. This is the core coverage for the organization that operates the residence, covering premises and operations. Professional liability alone does not satisfy the standard. Property coverage alone does not satisfy it either.
2. The named insured is the operating entity. The name on the certificate must match the legal entity you documented under Standard 2a, meaning your corporation, LLC or business license. Not an owner personally, and not a different business. If you operate under a fictitious name, the certificate should show the legal name with the trade name, for example "New Horizons Inc dba Horizon House."
3. Every residence is a scheduled location. Each house address AARR is certifying must appear on the certificate or on the attached location schedule. One address covering a six-house program does not work.
4. A business classification that fits the use. Recovery residence, sober living, habitational, shelter, halfway house, group home or human services classifications are appropriate. A policy written for an unrelated business, or for a private or rental dwelling, does not cover recovery housing operations, even when the address matches.
5. Current dates and visible limits. The policy period must be in force on the day of review. An expired certificate, or last year's renewal package, sends the application back to you.
"Appropriate to the level of support"
The second half of the NARR sentence is where coverage is expected to grow with your program. None of the following is required by NARR, but reviewers weigh them, and they matter more as staffing and services increase:
- Human services professional liability
- Abuse and sexual misconduct coverage, which is often excluded from base forms and added back by endorsement, so ask your agent for the limit
- Commercial auto, when staff or house vehicles transport residents
- Workers' compensation, where Arkansas law requires it
- Property coverage on buildings you own
- Directors and officers coverage for nonprofit boards
Many carriers bundle these in a nonprofit or human services package. AARR does not recommend or endorse any carrier.
What does not satisfy the requirement
These are the documents that arrive most often and cannot be accepted:
- A personal dwelling, landlord, rental-dwelling or mobile home policy, in any name, even one that includes premises liability
- Property-only evidence, such as an ACORD 27
- Professional liability or errors and omissions coverage by itself
- An expired certificate or last year's renewal package
- A certificate naming a different entity or a different street address
- A policy classed for an unrelated business
- Billing statements or invoices offered as proof of coverage
- A declarations bundle that leaves out the general liability page or the location schedule
The common thread is that each one proves something other than what the standard asks: that a building is insured, that a person is insured, or that a premium was paid. The standard asks whether the organization running the residence has current liability coverage for running a residence.
How to get it right in one call to your agent
Ask your agent for an ACORD 25 Certificate of Liability Insurance with the following:
- Certificate holder: Arkansas Alliance of Recovery Residences, info@narrarkansas.org. Additional insured status is not required.
- Tell your agent the property is operated as a recovery residence, so the policy is written for that use.
- Make sure every house address appears on the certificate or the location schedule.
- Make sure the named insured is your legal entity, with the dba if you use one.
If AARR needs classification or location detail the certificate does not show, we will ask for the declarations page.
After you are certified
AARR certification is valid for two years. Your policy will renew at least once during that term, so send the renewal certificate at each policy expiration. Notify AARR of any cancellation, lapse or change in the residences covered. A lapse in coverage is a lapse in compliance with the standard, and it is far easier to handle a renewal certificate on time than to reopen a certification review.
Frequently asked questions
Does AARR require a minimum liability limit?
No. NARR Standard 3.0 sets no minimum and AARR does not grade limits. We record what the certificate shows and confirm the coverage is in force. Ask your agent what limits are customary for residential human services operations of your size.
My homeowner's policy includes liability coverage. Does that count?
No. Personal dwelling, landlord and rental-dwelling policies cover a residence used as a home or a rental, not an organization operating a recovery residence. The policy has to be a commercial general liability policy classed for recovery housing or a similar human services use.
The house is owned by one entity and operated by another. Whose policy do you need?
The operator's. The named insured must be the organization that runs the residence, the same entity documented under Standard 2a. The building owner's property policy is a separate matter.
Can I submit the rest of my application while I sort out insurance?
You can submit it, but reviewers verify insurance first, and the application cannot move to document review until this item is satisfied. Getting the certificate right before you apply is the fastest path to a site visit.
Where to find the details
AARR's one-page insurance guidance sheet, with the exact NARR citation and the acceptance checklist above, is available in Forms and Downloads. The full certification process, including the documents reviewed after insurance, is on the Certification page. When your certificate is in hand, start your application at Get Certified.
This article explains what AARR reviews. It is not legal or insurance advice. Confirm coverage decisions with a licensed agent.