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 and a fine motor skills gymnasium, it needs to be protected. Especially when it involves something as big as other people’s little ones — not to mention your livelihood, as well.
That’s where our independent insurance agents come in. They’re experts when it comes to all-things insurance and can help you find the right coverage for your daycare at the right price for you. But first, let’s talk about risks and what kind of protection your daycare will need.
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.
Childcare centers and nursery schools are required to carry daycare liability insurance in order to be licensed by the Department of Health and Human Services (DHHS), and most states require licensure in order for a daycare business to legally operate. While the DHHS has strict guidelines that your business must adhere to, your insurance company may have even stronger requirements that will affect your daycare insurance costs. These requirements are put in place to limit your exposure to liability lawsuits.
The DHHS does not require liability insurance to license home-based daycare businesses. However, you may be required by your homeowners insurance policy to carry a business insurance policy or to purchase specific endorsements to protect your business.
Do not expect that your home policy will cover you for bodily injury or property damage stemming from your home business.
Your insurer many even refuse to renew your policy if they discover that you have been running a business out of your home without home daycare insurance.
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. Liability insurance provides coverage for any court costs and legal fees associated with any covered event.
Daycare business operations often invest a lot of capital into equipment to keep the children entertained during the day. A daycare insurance policy can provide you with compensation if your business property is lost or damaged. Coverage needs are slightly different for those that run their business in-home versus out.
Daycare insurance providers offer other insurance options that may be beneficial to your childcare business; like:
Adding options to your policy often increases the cost only marginally, and you can benefit from the added protection.
As you're starting your daycare, make sure you know what the demands are in your area. A little market research will go a long way, and will help you understand what kind of daycare would be most profitable. After you've determined what the structure of your business is and how many children (and of what age) you want to take in, it's time to consider coverage.
When you apply for permits and register your childcare business with your state government, you'll pay a tax to get unemployment insurance. However, getting licensed and acquiring permits isn't the end of your journey. Finding the right coverage that meets your needs and fits in your budget is also important. It's a good idea to contact your State Insurance Commissions office for general overview information on what you'll need to carry. Then it’s time to contact an independent insurance agent from the Trusted Choice network.
Daycare insurance is a specialized and confusing niche. Thankfully, you don’t have to go it alone. Our independent insurance agents will walk you through a hand-picked selection of options in language you can understand. So you know exactly what you’re getting.
Most importantly, they’ll be there to help you when claim time comes. The outcome of insurance claims can be strongly impacted by how the process is approached and handled. They've got your back!