Man, you sure are taking on some massive responsibilities. Taking care of one’s OWN child is scary enough as it is! You’re watching other people’s rug rats? You have balls, man.
You know, if you care for other people’s kids, you are the perfect target for someone to claim you have done wrong to their child in any way, shape or form. You’d better have child care insurance!
We’re about to show you the crucial insurance(s) you may need.
First, let’s look at some real case where providers have been sued below:
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You Think You Won’t Be Sued? Just Look At These Cases
No one PLANS on being sued. Surely none of these providers planned to be sued:
Toddler suffers severe burns at day care
Five-year-old suffers abuse at day care
Mother sues day care for leaving son in hot car
Boy suffers severe head injuries when TV falls on the child at day care.
Infant dies at daycare. Authorities shut it down. Lawsuit pending.
Of course, these are only the ones that MADE the news. Every single case that happens doesn’t make the news or on the internet. You better believe you are in a precarious and awesome position by watching other people’s kids!
That’s surely why you’re here… to find out more about this type of insurance for daycare.
Who Should Get Child Care Insurance?
Do you operate a day care? Whether you operate your daycare business out of your home or have a separate business location, you will want to highly consider day care insurance.
It’s for the sake of your business staying open. In many cases, this coverage is required.
You MUST carry daycare liability insurance in order to be licensed by the Department of Health and Human Services (DHHS). Most states require this licensure.
The DHHS has strict guidelines that you must adhere to. However, your insurance company may have even more strict requirements. This will affect your child care insurance cost.
The requirements are there to limit your liability exposure, so it’s a good thing. Being licensed by DHHS is also appealing to partner searching for a day care.
If you have a home-based daycare, the DHHS does not require family daycare liability insurance. You should check with your homeowner’s insurance to see if they require you to carry a business insurance policy.
You might be able to purchase specific endorsements from your homeowner’s policy to protect your butt with in-home child care insurance.
Still, your homeowner’s policy may not cover you for liability charges or property damage if you have a home business. Ask your homeowner’s policy holder for details.
Be sure you are clearly following all of the rules. If your insurer finds out you have been running a business without home daycare insurance, they may refuse to renew your homeowner’s policy.
Day Care Insurance Liability Coverages
We told you we would let you know what types of coverage you might need so here you go!
Not all policies are alike. Many come with varied coverages depending on your specific needs. Below are some of the most popular coverages.
- General liability: If anyone comes onto your property for business purposes, you need this. It covers you if someone gets hurt while on your property. It covers property damage. Kids- they are very accident prone! Even minor injuries will be covered. Major injuries may require your liability. This one is an absolute must.
- Professional liability: This insurance is to protect your employees. People make mistakes. You need to be insured in case an employee screws up. How? Oh, if they are negligent in their duties. Say they forget to give a child their medication, resulting in said kid requiring a hospital visit. Yeah, you could be on the hook for that because they are YOUR employee. Lawsuits can happen because of any type of abuse of a child. It could be physical, mental, etc.
- Premises liability: Anyone (the public) coming onto your property may get hurt outside of your business. This component of childcare insurance covers areas surrounding your business such as parking lots and play areas. Persons may claim that you did not properly provide a safe environment. Therefore you can be sued for medical bills or even property damage.
- Commercial vehicle liability: Do you transport kids to and from your business? If so, this is required. Your regular auto policy will NOT cover you in the instance there is an accident during business hours involving kids or employees.
- Non-owned/for hire vehicle liability: This case is when your employees use their own vehicles to transport children. Or, if any other privately-owned vehicles are used for transport to and from your business. Regular insurance will not cover mishaps that happen when the vehicle is being used for business purposes.
- Corporal punishment liability: We hope this never happens to you. If you have an employee who strikes a child or is accused of doing so, you are liable. This insurance gives you financial protection in such an event.
- Abuse and molestation liability: We hope that this never happens, but you must know that it could. If an employee (or you) sexually abuses or otherwise abuses a child, you had better be covered. You will face expensive fines and medical payments, not to mention hopefully jail! Your business will be protected with this insurance. Otherwise, you would likely lose your business after such an event.
- Umbrella liability protection: This coverage gives you extra protection that goes beyond the usual limitations of your liability limits. If you are a larger daycare, this is essential for added coverage.
Where Do I Get My Child Care Insurance From?
In conclusion, you want to find the best policy for the best rate. At Hiscox, you get the widest range of quotes from top providers. Simply fill out the online form and they will give you a no-obligation quote from one or more insurance coverage providers.
You can choose the best rates or the best coverage. Whether you need family day care insurance or coverage for your dedicated facility, this is the place to go. It’s very easy, fast and you’re under no obligation to buy.
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Make sure your business has the right coverage. Check out other types of business insurance