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Daycare insurance
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Daycare services and establishments are all about providing care –it’s in the name. They’re primarily sought out due to their childcare services for a brief period when the parents are unavailable. During this time, the safety and well-being of children and employees are the highest priorities. Still, things can happen as much as we don’t like to think about them.
Daycares tend to be riskier businesses due to the damages and the number of claims if they are uninsured. However, daycare services are a business like any other. With the right commercial insurance policy, they can be covered from injuries, lawsuits, and accidents during work hours or playtime with the little ones.
Insurance Navy is proud to offer daycares an easy-in to reliable and affordable daycare insurance coverage for their operations, facilities, employees, and customers.
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Why do Childcare Providers Need Daycare Insurance?
Why do childcare providers need Daycare insurance?
There are legal reasons any business or establishment should have insurance. However, there are other reasons why several opt for coverage. It’s often because a single accident or claim is enough to put anyone in the red and even out of business, regardless of their field.
Some of the most common insurance risks and hazards that daycares face when it comes to their employees and children are the following:
- Typical slip and fall injuries to employees and children during daycare hours
- A child ingests a toxic or poisonous substance
- Playground equipment and other amenities owned by the daycare cause injury to a child
- Being sued for negligence if a child is injured
- An employee can inadvertently injure or abuse a child
- An employee can accidentally break a child’s assistive device
- Property damage during hours and off-hours due to criminal or weather damages
- Getting in an accident with the daycare’s bus or transportation shuttle
- Failure to meet regulations and standards for running a daycare
How much does Daycare insurance cost?
Everyone and businesses pay different insurance amounts because the cost depends on several personal factors. Regarding daycare, it’s been reported that one can pay about $1,350 annually for commercial general liability insurance. This needs to account for the variety of other coverages a daycare needs.
The cost of daycare insurance can also be factored by the number of employees, location, whether or not it’s run out of a home, and more telling factors that can indicate risk. Compared to other services and businesses, there are some cases where an insurance policy for a daycare may cost more than average.
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Types of Daycare Insurance
The multiple risks and hazards you’ve just read about naturally require various types of daycare insurance for childcare businesses. While the typical commercial insurance coverages are accounted for, there is some more specialized coverage that daycare could more than benefit from carrying.
Costs vary widely based on the insurance coverages that daycares choose to add to their policies. This usually includes the following business insurance.
General liability insurance
Even the smallest of businesses carry general liability insurance. Not just because it may be required by law but because their customers' security and well-being come first. When those customers are parents trusting you with their children, daycare general liability insurance enables coverage of any injuries, medical costs, and any legal fees resulting from a lawsuit.
Kids can be injured during daycare days if they slip and fall like any other business. When a child is hurt at daycare, another layer of complexity is added because parents can sue them for negligence.
As previously mentioned, legal costs are regularly included in general liability insurance. This insurance would also cover assistive devices like hearing aids that some children may use or have if an employee accidentally breaks them while helping them.
Businesses also use this coverage to cover libel and copyright infringement damages.
Business property insurance
Inversely, the daycare and its facilities need insurance of their own. This is where business property insurance comes into play as a commercial property.
This covers any criminal or weather-related damages to the building and any unintentional damage to daycare equipment like toys and playground amenities. The good news is that daycare centers are rarely the scene of a break-in, robbery, or vandalism.
A good number of daycare services operate out of a private residence or home rather than a community center. Commercial property damage as a homeowners' endorsement is made for such daycares. This would allow property coverage during business hours. If this can’t be done for whatever reason, business property insurance can also be bought for a homeowners' policy.
Compared to other businesses, a daycare has a higher standard of property safety. Having good property insurance can help offset expensive repairs and replacements.
Professional liability insurance
This advanced form of business liability coverage accounts for errors made based on the professional service offered. This coverage is also referred to as errors and omissions insurance.
In the daycare context, the errors and omissions would be negligence accusations, unsupervised children, and employee background checks that resulted in the wrong person being hired and causing damage.
General liability insurance for a daycare won’t cover the legal defense itself, but professional liability insurance will. Having this coverage is essential because parents of children left at daycare often sign a waiver or release form wherein the daycare can be liable for any neglect, mistreatment, or if someone who should’ve been hired was hired.
Workers compensation insurance
A highly required commercial insurance is workers' compensation. Anyone can be injured while working.
Workers' compensation covers any injuries, legal fees, and lost wages if the employee in question has to miss work while recovering. There is much moving around when it comes to looking after kids, so the most common injury that daycare workers sustain is from a fall.
A daycare is as good as the staff working it –looking after the kids and arranging activities. Having healthy and adequate employees also helps to keep daycare safe.
More often than not, it’s usually required by state laws that businesses must carry workers' compensation insurance if they have others working for them. At the same time, an uninsured worker’s claim can put any operation under. When parents rely on daycare while at work and can’t care for their children, the team behind it should always be there.
Director and officers' insurance coverage
A board of directors or officers manages some establishments if they are a part of the community or village. Often, they are the ones making the decisions to change or improve any service like a daycare. If one such change results in dissatisfaction, like failure to meet the change standards, mismanagement of funds, and simple failure to perform official duties as a board member.
If the board were to change a daycare’s playground and a child gets injured on the new equipment, then that would be a case where directors' and officers' insurance would come in and cover any legal expenses.
While this insurance may not be necessary for independently managed daycares, the township ones may benefit from adding it to their policy.
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Additional types of Daycare insurance coverage
The average policy will undoubtedly include at least two types of daycare insurance mentioned above. Daycares can also opt for plenty of add-on coverages that specialize in certain damages and hazards –some of which are unique to daycares.
While the following insurance isn’t required by law, certain daycares may more than benefit them when they carry it.
Business interruption insurance
A daycare can be prepared for property damage with the proper insurance. However, if the building is foreclosed and has to be repaired for some time –that is another matter.
During this time, the daycare will miss out on days when the kids are supposed to come in, which means it will have no income. Business interruption insurance insures any business for times when they close until further notice due to property damage. This can be due to a fire or infestation.
Abuse insurance
As much as we hate to think about it, the wrong person can be hired at daycare and can intentionally hurt or abuse children in attendance. This can be mental, physical, or sexual. This coverage insures financial and legal losses as a result of a lawsuit.
Some insurance providers may list this as molestation insurance, which only covers sexual assaults. Similarly, there is also corporal punishment insurance, which again covers lawsuits if a daycare worker hurts a child while attempting to reprimand them.
Commercial car insurance
If a daycare uses a bus or shuttle to bring kids to and from the center along with field trips, they would be required to insure with commercial car insurance. Since a bus or shuttle is a business vehicle used for work, only commercial car insurance will work.
As with regular car insurance, policyholders have the opportunity for more in-depth coverage beyond the general liability that covers damages and injuries caused to other drivers and their cars.
Collimbulence and comprehensive insurance plans make up full car insurance. Collision will cover any repairs to the business vehicle in an at-fault accident. In contrast, Comprehensive covers the car against any criminal or weather damage that occurs while it’s not in use.
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Daycare Insurance from Insurance Navy
Daycares are one of the foremost local businesses, as community leaders usually come together for the betterment of their children. The last thing they would want to do is spend more on insuring the daycare rather than investing in it.
As a local business, Insurance Navy understands the need for a business insurance policy that adheres to a budget. We take the same low-cost approach to commercial coverage as we have for car insurance to ensure that every daycare has a chance to grow just like the children they are looking after.
Start today with a free daycare insurance quote and see how much your daycare can save on premiums.