When you have a daycare, there are a lot of expenses that you have to handle. You’ve got a business to run, and that doesn’t come cheap. One thing that you probably aren’t too thrilled about having to pay for is your childcare business insurance. You might really dread seeing that number — which is completely understandable. But you’re also probably wondering how much daycare insurance costs. That is the question: how much does childcare business insurance cost? Well … the problem is that a lot of different factors go into determining the cost of business insurance. We’ll explain.
How much does daycare insurance cost?
Like we said, there is a lot that goes into determining a business insurance premium. Insurance companies look at a lot of different things when they’re setting rates, after all. One daycare is not the same as the next, so they’re not all going to pay the same cost for their insurance. Your insurance needs to be customized and tailored ot your business to make sure that it’s meeting all of your business’s needs and covering all of the risks you face.
Here are some of the things insurance companies might look for when setting insurance rates:
The industry: Insurance rates, in general, depend on the type of business being insured. Different types of business come with different types of risk and different levels of risk. (And, as you can imagine, the more risk an industry comes with, the more expensive it will be to insure businesses within that industry.)
Your losses: Another important factor in the whole “how much does daycare insurance cost” situation is the losses that a particular business has faced. If there is a business with a messy, not-so-great loss history, they’re probably going to pay more than a business with a squeaky-clean loss history. Remember – insurance companies don’t exactly love risk. They just don’t.
Where the business is located: Even the area where your business is located can affect your insurance rates. Insurers pay attention to that sort of thing, too, when they’re determining your likelihood of experiencing a loss.
How many years you’ve been doing business: Another thing that can make a different to your rates is how long your daycare has been in business. If your business is “older”, or more mature, you’ve proved that you’ve got your feet under you and you can manage running a daycare. A newer business, on the other hand, might end up having to pay more for their insurance.
The carrier itself: One other thing that can affect your daycare insurance rates is, quite simply, the carrier itself. Different insurance companies charge different amounts, and some put a bigger price tag on their coverage.
The type of coverage you need: The insurance-pricing thing gets even more complicated when you break it down by different type of coverage. Things that impact one type of coverage, like workers’ compensation, don’t have an effect on other types of coverage, like property insurance. (For instance, your payroll might affect your workers’ comp, but likely won’t have much impact on your property.) So, your overall daycare insurance rate depends on the types of coverage you need for your business and what’s right for your childcare business.
Yes, insurance rates are complicated, and yes, they are affected by a lot of different things. But that’s why our team strives to make the process as simple as it can be. Just fill out a quote form to get started, or give us a call.
How to find out how much daycare insurance costs
Okay. So with all of that being said, you might be wondering … if so many things affect my daycare insurance rates, how am I supposed to figure out how much it costs? Well, the answer to that is to talk to an agent who understands the childcare industry and who can help you get some quotes. By getting daycare insurance quotes, you can not only find out what your insurance will cost, but you can compare rates. You never know — you might get coverage that’s just as robust and just as reliable but costs less. (Though, and this is important, you need to be sure you’re not skimping on coverage just to get a lower price.) And who doesn’t like saving a little money when they’re running a business?
To get some daycare insurance quotes, fill out our online quote form. If you prefer to talk on the phone, you can give us a call. We’re happy to help with your insurance needs.