It is a known fact that children get hurt. If you are sued, being covered by insurance is a lot cheaper than hiring an attorney or paying the claim.

Is your homeowner’s insurance enough to cover your daycare business? Usually, the answer is NO. In fact, most insurance companies don’t know how to properly insure daycare providers since our business is different than most other small business run from the home. Many want you to purchase expensive riders to your policy, so it pays to look for an insurance company that specifically deals with daycare policies. Also, some home policies only cover up to three children in your care, when most state licensing allows you to provide for six children at one time.

When looking into coverage, be careful of exclusions that even some daycare insurances won’t cover such as:

Dogs on the premises
Swimming pools (including wading pools)
Infants under 6 weeks
Care after normal hours
Trampolines

Check to see if your insurance covers field trips and/or transportation to daycare activities on and off your premises. Some auto policies will exclude your child care business.

The best policies will provide legal defense costs in addition to the policy limits. All residents of your household, employees, etc. should be covered if they help you provide care or are present in your home. Child abuse should also be covered in your policy. Some only include sexual abuse, which is different than physical and psychological abuse. No one wants to think it could happen to them, but it’s important to be covered and have your insurance provide a legal defense for administrative hearings resulting from child abuse allegations.

One of the best places I have found is Morgan Associates, Inc. They are a childcare specialist brokerage providing a Child Care Business Owner’s Policy which covers:

Commercial General Liability. Their policy is written on an “Occurrence Form” that means that as long as the incident occurred while coverage is/was in force, it will be covered no matter when the claim is turned in (i.e., 5 years later).

Professional Liability. This protects you and your employees or volunteers from any negligent act or error while taking care of the children.

Accidental Medical Payments. Provides $5,000 limit Accidental Medical Expenses per any one person with a zero deductible for medical costs within one year of the date of the accident. Allergic reaction to food and medicines administred by you are also covered.

Property Coverages.

And the list goes on. They are the only company that I am aware of that provides loss of income due to your house burning down or other similar circumstances.

Check out their website at www.morganinsurance.com

Peace of mind is worth a lot. Search around to find the best policy and company to match your needs. Most companies provide free quotes. Request them all!

Remember that any cost of daycare insurance you purchase is 100% deductible. Also remember to track the time you spend researching insurance for your time/space percentage!