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Home Daycare Insurance: Cost & Quotes From $15/mo

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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Table of contents
1. Do You Need Insurance for Home Daycare?1.1. In Home DayCare Insurance Requirements2. General Liability Insurance for Home Daycares2.1. Cost Covered by General Liability Insurance for Home Daycares2.2. Add-Ons to General Liability Insurance for Home Daycares 2.3. Coverage Limit of General Liability Insurance for Home Daycares2.4. How Do Insurance Companies Determine the Appropriate Coverage Amount for General Liability Insurance for Home Daycares?3. Professional Liability Insurance for Home Daycare Providers3.1. Costs Covered by Professional Liability Insurance for Home Daycares3.2. Add-Ons to Professional Liability Insurance for Home Daycares3.3. How Can Home Daycare Providers Reduce Their Risk of Professional Liability Claims?4. Public Liability Insurance for Home Daycares5. Accident Medical Insurance for Home Daycares5.1. Costs Covered by Accident Medical Insurance for Home Daycares5.2. Coverage Limits of Accident Medical Insurance for Home Daycares5.3. What is the Difference between Accident Medical Insurance and Liability Insurance for Home Daycares?6. Tools and Equipment Insurance for Home Daycares6.1. Cost Covered by Tools and Equipment Insurance for Home Daycares 6.2. Situations Where Tools and Equipment Insurance Becomes Handy6.3. What Types of Tools and Equipment Are Typically Covered by This Insurance Policy?6.4. What Steps Can Daycare Owners Take To Reduce the Risk of Equipment Damage or Theft?7. Commercial Property Insurance for Home Daycares7.1.  Costs Covered by Commercial Property Insurance for Home Daycares8. Business Owner’s Policy for Home Daycares 8.1. Cost Covered by Business Owner’s Policy for Home Daycares 8.2. Coverage Limits of Commercial Property Insurance for Home Daycares9. Commercial Auto Insurance for Home Daycares9.1. What Does Commercial Property9.2. What Types of Vehicles Are Covered by Commercial Auto Insurance for Home Daycares?10. Excess Liability Insurance for Home Daycares10.1. Cost Covered by Excess Liability Insurance for Home Daycares11. How Much Does Home Daycare Insurance Cost?12. Best Home Daycare Insurance Companies12.1. NEXT Home Daycare Insurance 12.1.1. Pros12.1.2. Cons12.2. CoverWallet Home Daycare Insurance 12.2.1. Pros12.2.2. Cons12.3. The Hartford Home Daycare Insurance 12.3.1. Pros12.3.2. Cons12.4. Tivly Home Daycare Insurance 12.4.1. Pros12.4.2. Cons12.5. Thimble Home Daycare Insurance 12.5.1. Pros12.5.2. Cons12.6. Hiscox Home Daycare Insurance 12.6.1. Pros12.6.2. Cons12.7. State Farm Home Daycare Insurance 12.7.1. Pros12.7.2. Cons

Home daycare providers offer a valuable service to parents who need quality care for their children while they work. However, operating a home daycare also comes with risks, so it's essential to have the right insurance coverage. In this article, we'll cover everything you need to know about home daycare insurance, including the types of coverage available, the costs involved, and the best insurance companies to consider.



Do You Need Insurance for Home Daycare?

Yes, home daycare providers must have home day care insurance insurance to protect themselves and the children they care for. In the event of an accident or injury, insurance can help cover the costs of medical expenses, legal fees, and property damage.


In Home DayCare Insurance Requirements

The 3 types of home daycare insurance that you shouldn’t skip getting are:

  • Liability insurance

  • Property coverage

  • Workers compensation insurance


Workers compensation insurance is the only one of the in-home daycare insurance requirements required by law. Failure to get this policy will result in stiff fine and penalties. Liability insurance and property coverage are optional. Nonetheless, it’s important to get them to meet the demands of clients and landlords. 


General Liability Insurance for Home Daycares


CoverWallet NEXT (Best)Thimble HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$300,000/$1,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$300,000/$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit $2,000,000
$1,000,000$1,000,000$1,000,000$1,000,000
Advertising injury coverage aggregate limit $1,000,000$1,000,000$1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit $100,000
$100,000$5,000$100,000$1,000,000
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoExcludedCan be includedCan be included
Equipment breakdown floater included?No YesYesCan be includedCan be included


General liability insurance can help protect home daycare providers from lawsuits related to bodily injury, property damage, or personal injury caused by their business operations. Some situations where this home daycare liability insurance can help include slip and fall accidents, playground injuries, and incidents involving pets.


Cost Covered by General Liability Insurance for Home Daycares

  • Medical expenses of the claimant

  • Reimbursement for the damaged property of the claimant

  • Attorney and investigation fees

  • Settlements

  • Court judgments 


Add-Ons to General Liability Insurance for Home Daycares 

  • Customer property coverage–This allows general liability insurance to reimburse the value of properties owned by third parties that got lost or damaged while in the custody of the home day care

  • HNOA coverage–Hired/non-owned auto liability coverage covers the medical expenses if third parties who got injured in an accident caused by a vehicle that the home daycare hired or borrowed


Coverage Limit of General Liability Insurance for Home Daycares

General liability insurance for home daycares has a $1 million per occurrence limit and a $2 million aggregate limit. But note that some insurance companies might offer a $300,000 per occurrence limit and a $2 million aggregate limit. 


How Do Insurance Companies Determine the Appropriate Coverage Amount for General Liability Insurance for Home Daycares?

Insurance companies determine the appropriate coverage amount for general liability insurance for home daycares by considering various factors such as the number of children in care, the type of activities offered, the age range of the children, the location of the daycare, and the potential risks associated with running a daycare.

The insurance company may also consider the experience and qualifications of the daycare provider, the safety measures in place, and the history of the daycare, including any past claims or incidents. 


Professional Liability Insurance for Home Daycare Providers


CoverWallet (Best)NEXT Thimble HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$2,000,000
Name additional insureds?YesYesYesYesYes
Waiver of subrogation included?YesNoYesYesNo
Deductible $500$500$500$500$500


Professional liability insurance, also known as errors and omissions insurance, can help protect home daycare providers from claims related to professional negligence or mistakes. This insurance can cover legal fees, settlements, and judgments related to claims such as failure to supervise or negligence resulting in injury.

The cost of professional liability insurance for home daycares depends on factors such as the number of children enrolled and the provider's level of experience and training.

Some situations where professional liability insurance can help home daycares include allegations of child abuse or neglect, failure to administer medication properly, and failure to provide adequate supervision.


Costs Covered by Professional Liability Insurance for Home Daycares

  • Investigation fees and attorney fees

  • Settlements

  • Court judgements

  • Reimbursement to the financial losses of the claimant


Add-Ons to Professional Liability Insurance for Home Daycares

  • Sexual abuse and molestation coverage–This coverage can help protect daycare providers from claims of sexual abuse or molestation by an employee


How Can Home Daycare Providers Reduce Their Risk of Professional Liability Claims?

Home daycare providers can take several steps to reduce their risk of professional liability claims. Some of these steps include:

  • Obtain appropriate insurance coverage

  • Follow licensing requirements

  • Maintain open communication

  • Document everything

  • Use proper discipline techniques

  • Provide a safe environment

  • Stay up-to-date on best practices


Public Liability Insurance for Home Daycares

Public liability insurance can help protect home daycare providers from claims related to injury or property damage caused by children under their care while in public places, such as on field trips or walks.

This type of  home daycare liability insurance isn’t commonly sold in the USA as there’s already general liability insurance. However, home daycares in the UK typically purchase public liability instead of general liability insurance. 

Accident Medical Insurance for Home Daycares

Accident medical insurance for home daycares is a type of insurance that provides coverage for accidents and injuries that may occur to children. It’s important to get this coverage since children can get injured during playtime, during walks, and other related activities. 


Costs Covered by Accident Medical Insurance for Home Daycares

Some of the costs that are covered under accident medical insurance for home daycares include:

  • Medical expenses for injuries sustained by children in the daycare

  • Emergency transportation costs

  • Coverage for daycare providers in case of a liability claim


Coverage Limits of Accident Medical Insurance for Home Daycares

The coverage limits for accident medical insurance for home daycares can range from $5,000 to $50,000 per occurrence.


What is the Difference between Accident Medical Insurance and Liability Insurance for Home Daycares?

Accident Medical Insurance, covers all medical expenses and emergencies  for children who are injured while under the care of the daycare provider. On the other hand,, liability insurance provides coverage for damages and legal fees in case the daycare provider is sued for injuries sustained by a child in their care. It is important to have both types of insurance to ensure comprehensive coverage for home daycare providers.


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Tools and Equipment Insurance for Home Daycares


NEXT ThimbleHiscoxThe Hartford
Aggregate limit$3,000/$10,000$2,500/$5,000$15,000/$25,000$5,000-$10,000
Covers hired and borrowed equipment?$3,000/$10,000$2,500/$5,000NoYes
Miscellaneous equipment also covered?$5,000/$10,000NoYesYes
Offered as an endorsement to general liability insurance?YesYesYesYes
Deductible$500$500$0$0


Tools and equipment insurance for home daycares protects from financial loss if their tools or equipment are damaged, stolen, or lost. It can cover the cost of repairs or replacements for essential items such as playground equipment, toys, and furniture.


Cost Covered by Tools and Equipment Insurance for Home Daycares 

The costs covered by this insurance policy may include:

  • Repair or replacement costs for damaged, lost, or stolen equipment

  • Business interruption costs if daycare operations are affected by the loss of equipment

  • Rental costs for temporary equipment needed to keep the daycare running


Situations Where Tools and Equipment Insurance Becomes Handy

  • Damage or theft of playground equipment

  • Loss of toys or furniture due to a fire or natural disaster

  • Equipment failure upset, mishandling, and electrical surge 


What Types of Tools and Equipment Are Typically Covered by This Insurance Policy?

Tools and equipment insurance for home daycares typically covers a range of equipment and tools that daycare owners may use in their business, including:

  • Playground equipment

  • Furniture (e.g., chairs, tables, cribs)

  • Toys and games

  • Electronics (e.g., computers, tablets, cameras)

  • Kitchen appliances (e.g., refrigerators, ovens)

  • Cleaning equipment (e.g., vacuum cleaners)


What Steps Can Daycare Owners Take To Reduce the Risk of Equipment Damage or Theft?

Daycare owners can take several steps to reduce the risk of equipment damage or theft, including:

  • Implementing security measures such as surveillance cameras, alarm systems, and locked storage areas for valuable equipment

  • Conducting regular maintenance and safety checks on equipment to identify any potential hazards or damage before it becomes a larger issue

  • Keeping an inventory of all equipment and regularly updating it to ensure nothing is lost or stolen

  • Educating staff and children on the proper use and care of equipment to reduce the risk of accidental damage

  • Enforcing rules and regulations regarding the use of equipment and proper supervision to minimize the risk of damage or misuse


Commercial Property Insurance for Home Daycares


CoverWalletNEXT (Best)ThimbleThe HartfordHiscox
Building coverage limit (minimum)$50,000$340,000$25,000/$500,000$35,000$25,000
Contents coverage limit (minimum)$50,000$35,000$25,000/$500,000$35,000$15,000
Outdoor signsExcluded$2,500ExcludedExcludedIncluded
Accounts receivable ExcludedExcluded$5,000/$10,000ExcludedIncluded
Money and securitiesExcluded$2,500$1,000ExcludedIncluded
Lock and keys Excluded$2,500ExcludedExcludedIncluded
Business interruption floaterExcludedIncludedIncludedExcludedIncluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedIncluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500ExcludedExcluded


Commercial property insurance for home daycares is a type of insurance policy that provides coverage for property damage, theft, or loss that may occur in a daycare facility. This insurance is essential for home daycare providers as it can help protect their business assets from unexpected events. This insurance can help home daycares in situations such as:

  • Fire or smoke damage

  • Water damage caused by burst pipes or flooding

  • Theft or vandalism

  • Natural disasters such as hurricanes, winds, and storms


 Costs Covered by Commercial Property Insurance for Home Daycares

The costs covered by Commercial Property Insurance for home daycares typically include the following:

  • Damage or loss of the daycare facility's physical structure and equipment, such as furniture, toys, and supplies

  • Loss of income due to the closure of the daycare facility after a covered event, such as a fire


The coverage limits for commercial property insurance for home daycares depend on the insurance provider and the policy's specific terms and conditions. Some insurance providers offer coverage limits of up to $5 million.