Menu

Understanding the insurance needs of commercial child care providers

As a daycare owner, the kids you care for are your top priority, but when it comes to insuring your business, they are one of many factors to consider.

daycare provider/teaser playing instruments with her students.

Commercial child care insurance requirements

It’s no secret that children can be a little (well, more than a little) unpredictable. While commercial child care professionals expect just about anything, the proper insurance coverage provides protection against the unexpected.

As a daycare owner, the kids you care for are your top priority, but when it comes to insuring your business, they are one of many factors to consider. You also may have employees and property that require coverage. Caring for children exposes your business to many liability issues, and in today’s litigation culture, it’s important that you have coverage for incidents and potential legal action.

A conversation with your local independent agent can help you identify all of the coverages your child care business requires.

Do you need insurance for a commercial daycare?

In most cases, yes. To receive a license from the Department of Health and Human Services, commercial daycare providers must carry liability insurance. That license is a requirement for commercial child care providers in most states. Of course, being a licensed care provider is also good for business.

Even if it’s not required, commercial child care providers face many liability exposures. Without coverage, a single incident could be debilitating to a daycare operation.

Which insurance coverages are most important for day cares?

General liability – This covers many of those unexpected events and incidents — like bodily injury or property damage — that can occur in your daycare. If a child is injured on the playground or a parent slips and falls on your sidewalk, you’ll be glad you had general liability insurance. This coverage will keep you financially covered for incident expenses, legal costs, and out-of-court settlements up to your set limit.

Professional liability – No matter how well-trained your staff is, employees can make mistakes or be perceived to do so by children’s parents. Just as doctors and lawyers need professional liability coverage to protect against professional errors and omissions, so do child care providers.

Read more: What is Employment Practice Liability Insurance?

While general and professional liability coverage are vital, there are several other recommended coverages you should consider, including, but not limited to:

  • Abduction Expense
  • Commercial Auto
  • Data Compromise
  • Equipment Breakdown
  • Excess medical payments for volunteers
  • Identify Theft Expense
  • Umbrella Liability
  • Worker’s Compensation and Employers Liability

No one knows your business like you do. Your local independent agent can help you align your daycare operation with the appropriate coverage so you can provide exceptional care with peace of mind.

Find an agent

Our independent agency partners will help you compare coverages and share industry insights as you shop for the right insurance policy for your needs.

Coverages may not be available in all states. Coverages described are subject to all the terms and conditions of the policy, including deductibles, exclusions, and limits of liability. Not all agents are authorized to write all types of insurance. Policies may be underwritten by SECURA Insurance Company or SECURA Supreme Insurance Company, affiliated companies referred to collectively as SECURA Insurance Companies. Please read the policy carefully. Any claim example is for educational and informational purposes only. The information in this document will not be used to determine the coverage of an actual claim presented. All claims are adjusted based on the relevant facts, conditions and coverages at the time of loss. For specific terms and conditions, please refer to your coverage form. Coverage is also subject to applicable deductibles and limits of coverage.

The information provided by SECURA on its Website (the Site) is for general informational purposes only. All information on the Site is provided in good faith, however SECURA makes no representations or warranties of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. The information contained on the Website is to the best of our knowledge true and accurate at the time of publication, however it is generally to be used solely for informational purposes. The materials on this website are not guaranteed to be correct, complete or up to date. You should not act or rely only on information on this website.

The Site may contain (or you may be sent through the Site links to other websites or content belonging to or originating from third parties or links to websites and features in banners or other advertising. Such external links are not investigated, monitored, or checked for accuracy, adequacy, validity, reliability, availability or completeness by SECURA. SECURA DOES NOT WARRANT, ENDORSE, GUARANTEE, OR ASSUME RESPONSIBILITIES FOR THE ACCURACY OR RELIABILITY OF ANY INFORMATION OFFERED BY THIRD-PARTY WEBSITES LINKED THROUGH THE SITE OR ANY WEBISTE OR FEATURE LINKED IN ANY BANNER OR OTHER ADVERTISING. SECURA WILL NOT BE A PARTY TO OR IN ANY WAY BE RESPONSIBLE FOR MONITORING ANY TRANSACTION BETWEEN YOU AND THIRD-PARTY PROVIDERS OF PRODUCTS OR SERVICES.

UNDER NO CIRCUMSTANCE SHALL SECURA HAVE ANY LIAIBLITY TO YOU FOR ANY LOSS OR DAMAGE OF ANY KIND INCURRED AS A RESULT OF THE USE OF THE SITE OR RELIANCE ON ANY INFORMATION PROVIDED ON THE SITE. YOUR USE OF THE SITE AND YOUR RELIANCE ON ANY INFORMATION ON THE SITE IS SOLELY AT YOUR OWN RISK.

SECURA would like to remind you that the data contained in this website is not necessarily real-time or accurate.

SECURA and any provider of the data contained in this website will not accept liability for any loss of damage as a result of your reliance on the information contained within this website.