Insurance for Child Day Care Services

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Why Child Day Care Services Need Insurance

Child day care services include babysitting, nursery schools, child or infant day care centers, and preschool centers.

Running a daycare, nursery school, preschool or babysitting business is no easy task. Parents trust you with those they love most, and when something goes awry during care, they hold you responsible. Whether your child care business is in your home or at a separate location, you need insurance.

Risks Child Day Care Services Face Include

Insurance protects you from high expenses associated with claims and lawsuits. For many child care businesses, insurance is brushed aside. Understanding the risks you face each day is the first step to understanding the importance of insurance.

  • Falls: Depending on the time of day, your daycare or nursery school floor may be covered with toys. If a parent walks in to pick up their child, falls, and sprains their ankle, you are responsible for their medical bills.
  • Injured Children: Children are unpredictable which means they are prone to accidents. What happens when a child falls off the playground equipment breaking an arm, or is hit by another child and loses a tooth?
  • Allegations of Abuse: Nobody wants to think about it, but when you are working with kids, you are at a greater risk for abuse allegations. What may be a simple misunderstanding or miscommunication can turn into a legal nightmare.
  • Injured Employees: Daycare employees spend their days chasing, lifting, and playing with the little ones in their care. Injuries in these scenarios happen quickly, and when they do, you will need to pay medical expenses and any lost wages associated with the injury.
  • Theft of Sensitive Information: Daycares keep sensitive information on record (electronic and paper formats) including children’s names, birthdates, and social security numbers. If this information is stolen, the cost associated with proper notifications is too expensive for most small businesses to pay.

In addition to these scenarios, you also risk auto accidents, special event/fundraiser claims, property loss, and loss of business income. It’s important to buy insurance specific your child day care services unique operations and needs.

What Types of Coverage Do Child Day Care Services Need

The numerous insurance policies available to child and day care services are endless. A good starting point is buying general liability and commercial property insurance. Daycares and preschools with employees also need to workman’s compensation and EPLI. Daycares that have a bus or van to transport children will also need business auto insurance.

  • General Liability: Pays medical expenses for third-party injuries, damage to other’s property while it’s in your care, and costs to defend lawsuits from these scenarios.
  • Professional Liability: Professional liability pays claims alleging you made an error or omission in a child’s care. You can also add abuse and molestation liability to most professional liability policies.
  • Cyber Liability: Pays costs associated with cyber breaches or loss of sensitive information including notification, settlement, and investigation. Some carriers extend coverage to paper files.
  • Business Auto: Commercial auto insurance protects you by paying expenses from auto accidents you or an employee cause while driving a business vehicle.
  • Accident & Health: Pays medical expenses for children in your care if they are injured and you are responsible. It is a secondary coverage that pays what their health insurance doesn’t cover.

Cost of Child Day Care Services Insurance

No two child day care services are the same which means costs vary depending on your operations. Many carriers review policies and procedures in place, experience, your last state inspection, and ages of the children you care for to calculate a premium. You can request a quote today for child day care services insurance below.

$42
Minimum monthly cost
for low risk businesses
$57
Median monthly cost
for average size businesses
$55
Average monthly cost
for average size businesses

What type of insurance does this industry need?

Policy What is it? Why get it Popularity in your industry Want free quotes?
General Liability
This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

What is it: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy.

Why get it: General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

Commercial Property
This policy protects the business's physical assets and is appropriate whether you own or lease your space. Keep in mind that this policy will only offer protection in the case of covered events. If you need protection for certain scenarios, such as floods or earthquakes, you may need additional coverage. If you have a mortgage or a lease, you may be required to have property insurance. Even if you are not, this is the best way to protect the building you are in and the business property you have in case of a natural disaster or some other accident.

What is it: This policy protects the business's physical assets and is appropriate whether you own or lease your space. Keep in mind that this policy will only offer protection in the case of covered events. If you need protection for certain scenarios, such as floods or earthquakes, you may need additional coverage.

Why get it: If you have a mortgage or a lease, you may be required to have property insurance. Even if you are not, this is the best way to protect the building you are in and the business property you have in case of a natural disaster or some other accident.

Workers Compensation
Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

What is it: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work.

Why get it: Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

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