The daycare industry continues to grow these days as more and more families move to become two-income households. And whether it’s a modest in-home daycare or a mega-care center with a bunch of rooms, it needs to be protected. Especially when it involves something as big as other people’s little one’s. Let’s talk about risks and what kind of protection your daycare will need.
Medical expense liability coverage
There can be instances where the children face injuries in your premises and you become liable to pay for their medical expenses.
Most general liability policies include medical payments insurance. It pays the cost of first aid and medical treatment for children or adults who are injured on the premises. Medical payments insurance is no-fault coverage, meaning it applies in the absence of a lawsuit
Physical abuse or molestation coverage
Child care providers may be sued based on allegations that a child was physically abused or sexually molested. Claims may arise from acts allegedly committed by the operator or their employees, volunteers, visitors, or family members.
The plaintiff claims the provider failed to adequately supervise an employee or volunteer, or hired someone without a proper background check . Many liability policies covering child care facilities exclude claims alleging physical abuse or molestation. Fortunately, some insurers offer abuse and molestation coverage for an additional premium.
Property coverage
If you own the building that houses your child care facility, you may need commercial property insurance to help protect both your building and its contents. If you rent, you may need property insurance to cover your valuable equipment.
You can get coverage available on a special cause of loss basis, which means you’re covered for events like fire, burglaries, vandalism, and even frozen pipes.
Auto coverage
Your pick and drop van might face an accident and get damaged. You become liable for the damages caused and also for the lawsuits if any.
If you use a car, truck, van, or combination of vehicles for your childcare business, then you need commercial auto insurance to cover damages and lawsuits in case of an accident.
Umbrella liability Coverage
You might face instances where the expenses occurred exceeds your insurance coverage. If you don’t have enough coverage, you will be liable to pay the additional money from your pocket.
Umbrella liability insurance provides additional coverage when claims exceed the limits of underlying liability policies, including general liability and commercial auto insurance. Legal fees can exceed coverage limits easily on liability policies, and one liability policy can’t make up the difference for another. Umbrella insurance picks up where your other liability policy falls short.
Errors & Omissions Coverage
Your employee might make some errors unknowingly which can later make you liable for a great loss
Errors and omissions covers the cost of your legal defence if you or your staff are accused of causing harm while providing professional services. This can include serving peanuts to a severely allergic child or failing to teach a toddler how to read as promised.
Daycare insurance is a specific type of business insurance that was designed to meet the unique needs of childcare businesses. It provides business owners with much-needed daycare liability insurance coverage as well as business property coverage.
Many policies come with a set of coverage options that allow business owners to build an insurance policy that caters specifically to their daycare’s unique needs.
Whether you operate your daycare business out of your home or a location far from it, you’ll really want to think long and hard about getting daycare insurance. In many cases, in fact, coverage is required.
Do not expect that your home policy will cover you for bodily injury or property damage stemming from your home business.
We live in a quick-to-sue society. There are many instances that may arise where your daycare business may face a liability lawsuit. Even if the charges are dropped, the ensuing legal defense fees can be quite expensive.
These are some of the coverages you must consider, do talk to us to know more
Type of Insurance | What it Covers |
General Liability Insurance | Third-party claims for bodily injury, property damage, and reputational harm |
Property Insurance | Business assets such as building, equipment, and supplies |
Professional Liability Insurance | Claims arising from your mistakes, omissions, or negligence while performing your work |
Abuse and Molestation Coverage | Losses arising from an employee abusing a child under your care |
Commercial Auto Insurance | Injuries, damages, and lawsuits arising from accidents involving vehicles your business uses |
Workers’ Compensation Insurance | Medical bills and wage replacement for employees who suffer work-related injuries |
Accident Insurance | Provides benefits to injured children and their families for covered accidents |
Umbrella Insurance | Claims that exceed limits on underlying liability policies |
Every childcare business, whether it’s an in-home daycare or a commercial daycare center, needs at least some business insurance. Even if you don’t own the building or have valuable business assets to cover, your work with children creates potential liabilities. It’s crucial to protect your business if claims arise.
Daycare insurance is a specialized and confusing niche. Thankfully, you don’t have to go it alone. We will walk you through a hand-picked selection of options, contact us today to know more.
It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options
If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.
Contact us today to help you with multiple options to choose from.