Professional liability insurance for daycares

Professional Liability (E&O) Daycare Insurance

What is errors and omissions liability for daycares?

Sometimes things don’t exactly go as planned, especially when small children are involved. If you run a daycare, there are a lot of moving pieces … and people. That is why it’s so important to make sure that you have the right insurance for your daycare business. One of the coverages that needs to be considered is errors and omissions (E&O) liability. Many small businesses need this type of insurance, but how does it apply for a daycare? And, well, what exactly is E&O insurance? We’ll give you an overview of what you need to know about errors and omissions insurance and daycares.

What is errors and omissions liability?

Errors and omissions insurance, or E&O, goes by a few different names. One name that you might hear is professional liability insurance. What this means is that it covers your, well, professional risks — risks that might not be covered elsewhere in your childcare insurance plan. The thing is that lawsuits come in all shapes and sizes — well, okay, typically they’re not small, they’re actually pretty expensive. Errors and omissions coverage can cover you if someone claims that you did not provide an adequate level of service, or alleges that you were negligent in providing your services. These sorts of claims may not be covered under your daycare general liability policy, and that’s why you need to make sure that you’ve got the coverage to protect your business against these sorts of claims and lawsuits. 

(Something important to note is that most E&O policies are on a claims-made basis, so they cover claims that are made against the insured during the policy’s term. That makes E&O a bit unique in the insurance world. Pay special attention to whether your policy has a retroactive date — if it does, the police will only cover acts committed on or after the date laid out in the policy. Just something to pay attention to.)

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How can E&O apply to a home daycare?

The reality is that business professionals are expected to keep fairly high standards. They’re basically expected to meet the “standards of care” that are accepted in their field — in this case, childcare. They’re supposed to act as a “reasonable person” would act or conduct themselves. And shaping the future generation is a serious undertaking, so you’re being held to some pretty high standards.

An article on The Balance gives an example of how a daycare could end up facing an E&O claim. If a childcare service says that they can teach a child a certain concept within a certain amount of time, but then they can’t or don’t, causing the child to not be accepted to a fancy school … you’d probably have some fairly angry parents on your hands. And those parents could sue. In which case, daycare E&O insurance could come in very handy and could help you out with the expenses you face from the lawsuit. That’s very kind of it, isn’t it? 

How to get daycare E&O insurance

Getting errors and omissions insurance for a childcare business might sound a bit scary. Admittedly, it’s perhaps not something you’re looking forward to. But the good news is that getting started with E&O insurance is as simple as getting a quote. That way you know how much you should expect to pay for your insurance, too, which is helpful. The important thing is to talk to an insurance agent who knows and understands the childcare niche and the coverages you need. They can help you find the right policy — one that’s the best fit for your business. Another piece of advice is to be sure to read the policy carefully so that you know what is and is not covered, and you’ll have the opportunity to ask any questions that come up in your reading. It’s always best to get the clarification that you need when it comes to insurance. Oh, and don’t forget to take note of any exclusions, or losses that are not covered by the policy. 

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Get a quote for errors and omissions coverage for a daycare.

Having the proper insurance for your daycare is crucial. That means getting started with getting a quote for daycare E&O coverage. We truly strive to make the insurance process as seamless as possible so you can focus on running your business and taking care of the kids. You don’t have to get bent out of shape about your insurance when you work with us.