According to the US Bureau of Labor and Statistics, there are currently more than 5,100 child care workers in the state of Mississippi. If you are the owner of a daycare facility, you can help your business stay profitable in times of trouble by investing in a comprehensive daycare insurance policy package.
Local independent insurance agents can help. These agents can offer guidance and advice and can shop around to find the coverage your business needs at the most competitive prices. Contact an insurance agent near you to get started.
Is Daycare Insurance Required in Mississippi?
Daycare insurance is a generalized term used to describe a business owners policy (BOP) or a business insurance policy package that has been designed to meet the specific coverage needs of daycare businesses.
Most states require daycare facilities to carry liability insurance in order to be licensed. However, Mississippi does not. The only exception is that childcare facilities that provide transportation must carry commercial vehicle liability insurance.
If your daycare does not carry liability insurance, you are required by the state to all inform current and potential clients of this fact in writing. This written statement must be signed by the parents of children in your care and kept on file at your facility.
How Much Does Daycare Insurance Cost in Mississippi?
The cost of daycare insurance coverage can vary from one business to the next depending on several factors such as the following.
- The size of your daycare and its expected annual revenues
- The number of children who attend your daycare every day
- The number of employees you have
- The crime rate and weather risks where your daycare is located
- The value of the property owned by your daycare
- Whether you own or rent the building where your daycare is located
- Your business’s claims history
The best way to be sure that you are not overpaying for your daycare insurance coverage is by contacting a few competing insurance companies and requesting customized quotes. Independent insurance agents can do this for you.
What Kinds of Property Coverage Does My Mississippi Daycare Need?
Commercial property insurance is included in every standard daycare insurance policy. It is designed to cover the cost of rebuilding, repairing, or replacing lost or damaged property following a covered event. Covered risks include the following.
Commercial property insurance has two parts.
- Structural coverage: This is necessary only if you own the building in which your daycare is housed. It covers damage to the structure of the building.
- Contents coverage: This covers loss or damage to your daycare property such as toys, furniture, electronic equipment, and décor.
One hazard that is not covered by commercial property insurance, however, is flood damage. This is true even if the flood is the direct result of a covered hurricane or storm.
Fortunately, you have the option of supplementing your coverage with an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP). The NFIP can provide you with up to $500,000 in structural coverage and $500,000 in contents coverage.
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What Kinds of Liability Coverage Does My Mississippi Daycare Business Need?
Liability insurance can protect your daycare facility from large financial losses by covering legal defense, court costs, settlements, judgements and other damages if your business is sued for a covered event. Although not required in this state, it is highly recommended.
There are a few different types of liability coverage that you may want to consider.
- Commercial general liability insurance (CGL): This is designed to cover against the most common risks faced by businesses. It includes the following.
- Premises liability insurance: This can provide coverage if a child is injured at your facility while in your care, or if a client’s expensive property is lost or damaged at your daycare.
- Product liability insurance: This can provide coverage if your daycare provides lunches to children and the food is somehow contaminated, leading to food poisoning or illness.
- Coverage against accusations of libel or slander
- Professional liability insurance: This can cover against accusations by parents that the staff of your daycare provided inadequate care to their children that resulted in developmental delays or emotional problems.
- Abuse and molestation insurance: Unfortunately, no matter how carefully employees are vetted, child abuse sometimes happens at daycares. This insurance can cover the liability expenses your daycare will be responsible for paying if this occurs at your facility.
- Commercial vehicle liability insurance: This can cover injuries and property damage if one of your drivers causes a collision. It is the only type of liability coverage that is required by the state, and it pertains only to daycares that offer transportation services.
Having the right liability insurance in place has the potential to save your daycare business from bankruptcy if it is hit with a liability lawsuit.
What Else Can Mississippi Daycare Insurance Cover?
There are additional insurance products that you may want to include in your daycare insurance policy package. These include the following.
- Business interruption insurance: This can provide your daycare with a continuation of income if it must temporarily shut down for an extended time to repair damage caused by a covered event.
- Workers’ compensation insurance: This can cover the cost to treat worker injuries and provide employees with disability pay while they recuperate. You are required to carry this insurance in Mississippi if your daycare employs at least five regular workers.
- Employee benefits: If you are interested in offering your employees benefits like life insurance and subsidized health insurance, there are several different insurance policies and plans available.
When your business is fully covered against all potential risks, you can focus your attention instead on providing Mississippi parents with excellent childcare services.
How an Independent Insurance Agent Can Help
Independent insurance agents make shopping for coverage easy. These agents can perform a complete risk assessment of your daycare business and can recommend the best and most affordable policies to cover against each of them.
There are more than 200 independent agents in Mississippi. Arrange an obligation-free consultation with an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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