Whether you provide in-home daycare services or you have a commercial facility, you may need certain insurance protection in order to continue operating your business and taking care of children. But daycare insurance isn’t just about compliance; it’s also about protecting your finances from the cost of lawsuits and property damages while showing parents just how seriously you take the care of their children.
Liability insurance is a must for both commercial and in-home care. With liability insurance, you can protect yourself in the event you are accused of neglect or abuse, since the policy will pay defense costs as well as the judgment, provided that it’s within limits and was not due to willful neglect. Liability coverage can even cover incidents that occur while you and the children are away on field trips and can protect against accusations against any employees you have. In this day and age, when many children are on medication and some have food allergies, the added layer of protection provided by liability insurance is even more important.
When securing liability insurance, you’ll need to consider both the deductible you can afford and the limits that sound reasonable to you. If you have a pool or you provide transportation of the children in a vehicle then make sure to mention that to the insurer. Commercial facilities might also consider employment liability and worker’s compensation coverage in order to protect them against claims by their employees.
Liability isn’t the only risk that daycare providers are exposed to. Their personal and business property may also be exposed to potential damage. Property insurance should, therefore, be secured by all day-care service providers. When you have a commercial facility, you can secure a commercial property insurance policy that protects the building, contents and some outside structures. In-home daycare providers should consider a home insurance policy that includes protection for their business practices. It’s important to note that auto insurance and flood insurance need to be purchased separately.