Running a business is not easy, especially when small children are involved. If you have a childcare business, you know that there are plenty of things that can go wrong … hence why getting the right insurance for your daycare business is so important. There are different coverages that can protect your business from the risks you face, of course. Now, the question is this — how do you get daycare insurance for your childcare business? It seems like a lot of work. We’ll break it down into a few quick and easy steps.
1. Understand the risks your business faces.
First and foremost, you need to know what sort of risks your childcare business faces. There are kids running around, after all, and you open yourself up to a lot of risk. Some of the risks you face are…
- Slips and falls
- Negligent acts
- Not providing the service/care that parents expect
- Roughhousing on the part of the other children
- Bad food/Toxic substances
- Alleged abuse or molestation
These are the sorts of risks you need to make sure that your daycare insurance protects you from. Getting the right insurance is crucial to making sure your business can thrive.
2. Get familiar with the types of coverage you might need
The next thing you might want to do when you’re buying insurance for a daycare is understand what the different coverages you may need for your business. That way you’ll recognize some of the words and jargon you might hear tossed around when you’re in the process of getting quotes. Some of the coverages you might want to consider for your daycare are…
General liability
General liability insurance can protect your business if someone alleges that you caused them bodily harm or property damage. A common example of a general liability issue is a slip and fall where someone gets hurt on your premises after taking a bad spill.
Physical abuse or molestation
Another coverage you might need for your daycare is physical abuse and molestation coverage. If you are ever sued over allegations that a child was abused or molested, this is the coverage that can help. A claim could be about acts that an operator, employee, volunteer, or visitor commit. You may have to add this coverage as an endorsement. (Something to be aware of is that you need to read the coverage carefully so you understand what is and isn’t covered.)
Errors and omissions
You might also want to think about errors and omissions coverage. This is the coverage that can help if you get sued over not providing the level of service that someone expected. It can help if you face a lawsuit centered around professional expectations or issues.
Workers’ Comp
If you have employees, you might need to carry workers’ compensation insurance to protect them. That depends on your state laws. Make sure you know if that applies to your business.
Property insurance
Property insurance can help protect your business if an asset like a building or even play equipment is damaged by a covered loss. Again, you need to be sure to read the policy to make sure you understand what’s covered and what isn’t.
Commercial auto
If your daycare has its own vehicles that are used for the business, you’ll need to make sure those are appropriately covered with a commercial auto insurance policy. Driving is dangerous, so you need to be sure that you have the proper insurance for those vehicles.
Keep in mind that these aren’t the only insurance coverages that your daycare business might need or want to consider. These are just a few common ones. Each business is unique and needs an insurance plan that’s tailored just for it.
3. Get quotes
The next step in the “how to buy daycare insurance” process is to get daycare insurance quotes. Our team can help you get some quotes so you get an idea of what coverages your particular business needs and how much the daycare insurance will cost. It helps to have someone who understands the daycare and childcare insurance world to talk to as you’re setting up the insurance for your business. From there, you can compare different options and determine what suits your business. (Although don’t choose a lower price instead of better coverage.)
So, that’s how to buy daycare insurance in a few simple steps. To get in touch with our team, fill out our online quote form or give us a call! We’re here to help.