If you run a home daycare center, it is compulsory that you buy insurance policy cover for the business or else the business might be shutdown. As a matter of fact, one of the basic requirements you would have to fulfill if you want to continue to run your home daycare centre is to purchase an insurance policy cover for the business.

No doubt no parent would want to patronize a daycare centre that has no insurance cover, in some cases, some parents go as far as finding out the type of insurance cover that a daycare has before enrolling their children. The truth is that you cannot rule out unforeseen circumstance while running your daycare centre; a child can get hurt or perhaps some things might go wrong and it is insurance companies that can help you sort it out.

N.B-: This article is culled from: “The Complete Guide to Starting a Daycare Center from Home.

There are various insurance options that you can chose from as a daycare centre owner; we have daycare liability insurance cover, general business insurance policy cover and home owner insurance policy cover et al. You would have to critically examine the various options you have in front of you before making your choice of the insurance policy cover to purchase for your home daycare centre.

In some instance, you would be required to purchase two or more different insurance policy cover for your home daycare centre. For example if you own the property that you are running the home daycare from, you would need to purchase home owner insurance policy cover and also daycare liability insurance cover.

From experience, the best insurance policy cover to buy for your home daycare centre is daycare liability insurance policy cover. This insurance cover is designed specifically for home daycare centers.

Basically, home daycare liability insurance policy provides coverage when in situations where someone sustains injury within the premises of the home daycare centre. The cover is not restricted to just the children in the daycare but also the employees that work in the daycare. Home daycare liability insurance policy also provides coverage for any damages done to the property that is used for the home daycare centre and also any equipment of property within the premises of the home daycare centre.

One good thing about home daycare liability insurance policy cover is that various insurance companies have various price ranges for their own home daycare insurance policy cover. The truth is that the premium you are expected to pay is dependent on what you want them to cover in your home daycare centre.

So in making your choice for the best home daycare insurance policy cover, you would have to consider some key factors unique to your home daycare centre. Some of the factors to be considered are;

Choosing an Insurance Policy for a Home Daycare Center – 3 Factors to Consider

1. The Options You Have Before You

In order to make the right choice of the best insurance cover to purchase for your home daycare centre, you would have to critically examine the options you have before you. In as much as home daycare liability insurance cover happens to be the best insurance cover for this type of business, it still important for you to speak with an insurance broker to know the options that are available and the one that will fit perfectly into your overall goal of running a daycare centre.

2. The Location of Your Home Daycare Centre

Another fact that you should also consider when shopping for the best insurance policy cover for your home daycare centre is the location of your home daycare centre. If you run your home daycare centre in your own property and not a rented property, then you would have to purchase both home owner’s insurance cover and home daycare liability insurance policy cover.

Some home owner make the mistake of only purchasing home owner insurance policy cover thinking that it will cover their home daycare centre. Of course home owner’s insurance policy cover can only cover the property housing the home daycare centre and not the children and employees working in the daycare centre. But if you are not the owner of the property, then you are only compelled to purchase at least home daycare liability insurance cover. But you can as well purchase general business insurance policy cover if you so desire.

3. Your Budget for Insurance Policy Cover

Your budget for insurance policy cover is yet another factor that you would have to consider in order to make your choice on the best insurance policy cover to purchase for your home daycare centre. Part of what will influence your budget for the amount to spend on insurance cover is the numbers of children you plan to admit in your home daycare. The higher the numbers of children you have in your home daycare centre, the higher the premium you are going to pay for insurance policy cover.

Another thing that will influence your budget for insurance for your home daycare centre is the size of the facility housing your daycare centre. The larger the facility, the higher the premium you are expected to pay and vice versa. It is advisable to create a robust budget for insurance for your home daycare centre if indeed you want to mitigate unforeseen loses et al.

Over and above, it is important to ensure that you discuss with an insurance broker before making your choice of the best insurance policy cover to purchase for your home daycare centre.

Frequently Asked Questions

  1. How Much Is Liability Insurance For A Daycare?

Have it in mind that the cost of your liability coverage under your day care insurance policy will also depend on several factors, but in general, this aspect of coverage alone costs about $54 monthly, or $646 annually.

  1. Does Homeowners Insurance Cover Home Daycare?

No, Homeowners insurance do not cover risks associated with a home day care business.

  1. Will Homeowners Insurance Cover A Home Childcare Business?

No, while homeowner’s insurance protects your home, it may not insure parts of your business. As a result you may need additional business insurance.

  1. What Does Daycare Liability Insurance Cover?

This type of commercial insurance offers liability insurance coverage, business property coverage and other optional coverage like abuse & molestation to protect the day care from legal liability and expensive lawsuits.

  1. What Kind Of Workers’ Compensation Insurance Do Daycare Need?

To know which type of workers’ comp coverage you need for your day care, work with an independent insurance agent. They’ll know what type of coverage is required in your area.

 6. What Activities Will Daycare Insurance Cover?

Depending on the types of coverage you select for your day care insurance policy, coverage can apply to the following activities and much more: field trips, outdoor activities, routine indoor activities, visits by guests, and physical playtime activities.

  1. Are You Protected If You Are Just Babysitting Kids In Your Home?

No, a babysitter that is working occasionally for a family in their home is not required to have any kind of insurance, although it still might not be a bad idea. However, this is entirely different from a child care centre which definitely should have liability insurance.

  1. How Much Does Workers Comp Insurance Cost?

More or less, a small business owner with a few employees can expect to pay around $2,000 to $3,000 in Workers Compensation Insurance premiums annually. As an employer’s payroll increases, premiums will also increase.

  1. What Kind Of Insurance Should A Daycare Have?
  • General Liability Insurance
  • Property Insurance
  • Professional Liability Insurance
  • Abuse and Molestation Coverage
  • Commercial Auto Insurance
  • Workers’ Compensation Insurance
  • Accident Insurance
  • Umbrella Insurance
  1. Should Earthquake Insurance Be Part Of Your Disaster Plan?

Yes, if you live in an area prone to earthquakes, then you should at least consider getting earthquake insurance. Start by asking yourself if you could afford to rebuild your home and replace your personal belongings without insurance. Note that the federal government’s disaster assistance is limited. Grants for home repairs are meant to cover essential repairs only, to get your house to be safe and clean, not to restore it back to its original condition.

  1. What Is The Amount Of Square Feet Per Child For Outdoor Space?

40 square feet per child

  1. How to Find Cheap Workers Compensation Insurance?
  • Double-Check Class Codes
  • Calculate Payroll Accurately
  • Look at Non-Employee Coverage Requirements
  • Shop Around for Workers’ Comp Quotes
  • Work With Your Agent (& Ask For Discounts)
  • Avoid Workplace Injuries.
  1. What’s The Best Insurance For A Home Daycare Centre?

Liability  Insurance

  1. How Much Should I Pay For Homeowners Insurance?

According to reports, the national average cost of homeowners insurance is $1,312 a year or about $109 per month.

  1. Why Do Child Care Services Need Insurance?

Day care centres and other child care providers need insurance to protect themselves from third-party claims and other types of losses, such as damage to personal property.

  1. How Much Homeowners Insurance Do You Need?

Note that most homeowner’s insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.

  1. Does Progressive Have Daycare Insurance?

No, commercial auto insurance is the only business product Progressive handles in-house. All other Progressive business insurance policies, such as general liability, property, or workers compensation policies, are sold under the Progressive Commercial Advantage program written by third-party insurers.

  1. What Can’t You Get Sued For As A Daycare Business?

Have it in mind that a parent or guardian can sue a day care for anything relating to the safety to their kids as long as they can prove that your daycare owed the child a duty of care. They only have to prove that the day care breached its duty of care and that the child was directly injured or harmed as a result.

  1. How Many Square Feet Should A Daycare Centre Be?

According to reliable data, the minimum requirements for square footage in Daycare are: 35 square feet per child indoors. 40 square feet per child outdoors.

  1. What Happens If A Child Gets Hurt At Your Daycare?

The responsible person and educators will:

  • Provide first aid and comfort to affected/injured children (s)
  • Call emergency services if necessary (depending on the incident)
  • If relevant, implement the child’s current medical management plan if provided as part of the child’s enrolment.
  1. What Is Child Care Liability?

A child care liability policy is a general business liability policy tailored to the specific risks childcare businesses face. Childcare liability policies typically cover:

  • Physical injuries
  • Personal injury claims
  • Property damage
  1. Does Geico Offer Daycare Insurance?

Yes! Whether you’re a small day care or just getting started or looking for better insurance rates, GEICO can help.

  1. Does State Farm Offer Daycare Insurance?

Yes, State Farm insures you for however many children you are licensed to care for as long as you keep your maximum allowed updated with them. They’ll even cover up to 14 (the maximum allowed in a day care home) as long as you pay the rate and are licensed to care for them all.

Ajaero Tony Martins