Your in-home day care is just as much a business as a stand-alone brick-and-mortar day care is. In fact, your insurance needs are a little trickier because there is little separation between your home and your business.
Unfortunately, many in-home child care providers do not see their businesses in this light and fail to obtain adequate insurance protection to meet your genuine coverage and protection needs. Below you will learn about various types of insurance coverage your in-home day care needs to protect your personal and business interests.
Business Owner’s Policy
Your day care is a business, even if it is located in your home. This means you need a business owner’s policy (BOP) to protect your business in the following ways.
- Property insurance protection. Covers damage to your day care equipment, tools, materials, computers, etc.
- Genuine liability insurance. Helps to cover legal expenses and medical payments related to slips, falls, and other general liability issues related to your day care.
- Business interruption insurance. Helps replace lost income when your business is forced to close due to a covered event (fire, tornadoes, etc.).
The business owner’s policy is a general business policy and separate from other types of insurance your day care may require.
Physical Abuse and Molestation Coverage
While accusations of abuse and molestation are things no day care providers hope to ever face, the claims can be devastating if you do not have the proper type and amount of insurance protection against these claims.
The legal fees alone can put you out of business and wreck your financial standing for life. This insurance helps you to pay legal fees to mount a defense and to help with damages if they are awarded in your case. Of course, you’ll want to read the fine print to understand what is and is not covered by this insurance protection.
Errors and Omissions Coverage
This is a form of professional liability that provides protection if you are sued for professional negligence or not living up to client expectations. This is liability coverage that will help cover legal fees as well as potential payouts – up to the policy limit.
Worker’s Compensation Insurance
If you have employees for your in-home day care business, you will need to provide worker’s compensation insurance for those employees. This will help protect you if they are injured while performing their jobs so that they do not sue you for things like medical expenses, lost wages, and other issues. It is also required by law in most U.S. states.
Business and Personal Umbrella Liability Insurance
When you operate a business inside your home, the lines are often blurred between what constitutes a business liability claim and what happens to be a home liability issue. Umbrella insurance is about providing additional liability insurance in case legal expenses or awards go beyond the limits of your existing liability insurance policies. You will need both home and business umbrella liability coverage because your business location is also your home.
We understand the challenges you face when finding the right insurance protection for your in-home day care business. Fill out our convenient online form and we’ll get back to you with a quote for the insurance coverage your business needs.