What coverages do you need for a daycare?

If you have a daycare, you deal with small children on a daily basis. Which pretty much makes you fearless. One thing, however, that you might have some apprehension over is your daycare insurance. Any sort of business requires the proper insurance, but childcare is a unique industry. There are a lot of risks that you have to contend with. And, being a savvy daycare operator, you know you need to have your ducks in a row when it comes to getting the right coverage. So, what insurance coverages do you need for a daycare? We’ll explain. 

What coverages do you need for a daycare? 

Well, there are multiple coverages to consider for a daycare. Each of them does something different, and that’s why a variety of coverages are necessary to protect your business. Here are a few of the childcare insurance coverages that you should think about:

General liability

General liability (GL) is a really important coverage; it can protect you if a visitor to your business gets hurt or experiences property damage. (For example, a slip and fall that results in injuries – and a lawsuit – is something that general liability could help you out with.) Being sued is not fun, and lawsuits … well, they’re extremely expensive. Hence why GL coverage is such a big deal. 

Abuse and molestation

This is not a pleasant situation to think about, but if your business faces allegations that one of your employees abused or molested a child, this coverage can help. It is extremely important that you understand exactly what is and isn’t covered by the policy, however, because not all policies are the same. You need to make sure the policy is going to cover what you expect it to cover or want it to cover. 

Errors and omissions

Errors and omissions insurance can protect your business if your daycare is sued because you supposedly did not provide the type of service that was expected. An example given by an article from The Balance is if your business claims to be able to teach a certain concept in a certain amount of time, but then that doesn’t quite happen and a child doesn’t make it in to a fancy preschool. E&O insurance can cover lawsuits like that. (Though, again, be sure to read the policy carefully.) 

Corporal punishment

Again, this isn’t a fun one to think about. But what if someone at your daycare is accused of hitting or striking a child? That would not be good, and that’s why there is corporal punishment insurance. This coverage can help you handle the legal fallout from such allegations. 

Additional coverages…

These are four coverages that you might want to think about for your daycare, but there are other coverages your business might need. That is why it’s essential to have a childcare business insurance plan that’s suited to your business and its individual needs. Here are a couple other coverages you might want to consider… 

  • Commercial auto: If your daycare has vehicles used for the business, you should consider commercial auto insurance. Hitting the road is not without its risks, after all. 
  • Workers’ compensation: Depending on your state’s laws, you might be required to carry workers’ compensation insurance to protect your employees. 
  • Property insurance: You might also need commercial property insurance to protect your business in case something happens to your building. 
  • Umbrella liability insurance: An umbrella insurance policy can give you some extra coverage if the limits on the underlying policy are exhausted. 

Even these are not the only coverages that you need to consider. Every business and every daycare is unique, which is why you need to make sure your insurance policies cover the risks you face. Your insurance needs to be customized to your childcare business. It’s also a good idea to team up with an agent who truly understands the childcare world. It’s a unique niche, one that has unique risks. 

Get daycare insurance quotes

When thinking about what kind of insurance a daycare needs, you might feel a bit like your head is spinning. Insurance comes with a lot of fancy jargon, and, admittedly, it can get complicated. But that’s why our team is here – we can help. We would be happy to talk with you about your daycare and your insurance needs. We’ll explain everything that needs explaining and answer any questions that come up. 

To get started with getting daycare insurance quotes, just fill out our online form to get in touch with our team. If you prefer to simply give us a call, that’s fine too – whatever works for you!

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