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

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


NEXTThimbleHiscoxThe 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 receivableExcludedExcluded$5,000/$10,000ExcludedIncluded
Money and securitiesExcluded$2,500$1,000ExcludedIncluded
Lock and keysExcluded$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.




Business Owner’s Policy for Home Daycares


CoverWalletNEXT (Best)ThimbleThe HartfordHiscox
General liability aggregate limit$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$300,000/$2,000,000
Commercial property coverage limit$50,000$320,000$25,000/$500,000$35,000$75,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes


A business owner’s policy (BOP) is an insurance policy designed for small businesses, including home daycares. A BOP typically combines several types of coverage, including general liability insurance, property insurance, and business interruption insurance into one policy.


Cost Covered by Business Owner’s Policy for Home Daycares

A BOP for home daycares can help protect the daycare owner from financial losses related to various incidents. For example, if a child is injured while playing at the daycare and the parents sue the daycare owner for medical expenses and other damages, the liability coverage provided by a BOP can help cover these costs. If a fire damages the daycare building and the daycare owner cannot operate the business for several weeks while repairs are made, the business interruption coverage provided by a BOP can help cover lost income during that time.


Coverage Limits of Commercial Property Insurance for Home Daycares

The standard coverage limit for property damage or theft may be around $10,000 to $25,000, while the liability coverage limit may be around $1 million.


Commercial Auto Insurance for Home Daycares

Commercial auto insurance is a type of insurance policy that covers vehicles used for business purposes. This insurance is particularly important for home daycare providers who transport children to and from their daycare facilities. It helps to protect both the home daycare provider and the children they transport in the event of an accident.


What Does Commercial Property

  • Cover the medical expenses of third parties who got injured in an accident caused by the commercial vehicle of a home daycare

  • Cover the medical expenses of children, driver, and other passengers if the vehicle gets involved in an accident

  • Cover the repair of the commercial vehicle if it gets damaged or destroyed due to collisions, fire, theft, vandalism, and other covered perils


The coverage limits for bodily injury liability can range from $100,000 to $1 million per occurrence, and coverage limits for property damage liability can range from $50,000 to $500,000 per occurrence.


What Types of Vehicles Are Covered by Commercial Auto Insurance for Home Daycares?

Home daycare providers may wonder what types of vehicles are covered by commercial auto insurance. Generally, this insurance covers any vehicles used for business purposes, including vans, SUVs, and even personal vehicles used for daycare-related activities. It is important to note that vehicles must be registered under the home daycare provider's name to be eligible for coverage.


Excess Liability Insurance for Home Daycares

Excess liability insurance is designed to provide additional coverage beyond the limits of an individual's primary insurance policy. For home daycares, this type of insurance can offer protection against lawsuits or claims that may exceed the coverage limits of their general liability policy.


Cost Covered by Excess Liability Insurance for Home Daycares

The costs covered by excess liability insurance can include legal fees, court costs, and damages awarded to a plaintiff in a lawsuit. The coverage limits can vary depending on the insurer and policy, but they typically start at $1 million and can go up to $10 million or more.

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How Much Does Home Daycare Insurance Cost?


Cost per MonthCost per YearDeductible
General liability insurance$33$396$0-$500
Professional liability insurance$42$504$500-$1,000
Commercial property insurance$108$1,296$1,000-$2,000
Business owner's policy$141$1,692$500-$1,000
Tools and equipment insurance$40$480$500-$1,000
Workers compensation insurance$103$1,236$2,500-$5,000
Commercial auto insurance$76$912$500-$1,000
Excess liability insurance$80$960$500-$1,000


On average, home daycares pay $33 per month or $396 per year for a $1 million general liability insurance. The cost of home daycare insurance varies based on several factors, including the location of your home daycare, the number of children you care for, and the coverage limits you choose. 

Other factors that impact in home daycare insurance cost include the type of coverage you choose, such as general liability, property damage, and professional liability. Additionally, some insurance companies may offer discounts for things like having a clean claims history or for completing certain safety training programs.

Here’s a table giving a further idea of how much is home daycare insurance by showing the rates of companies we recommend:


Cost per MonthCost per YearBest for
NEXT$21$252Best overall; Fastest general liability insurance for home daycares
Hiscox$22$264A wide range of additional coverage options
CoverWallet$28$336Comparing home daycare insurance quotes online
Thimble$31$372On-demand coverage for home daycares
Tivly$33$396Comparing home daycare insurance quotes over the phone
The Hartford$78$936Competitive pricing and personalized attention
State Farm$90$1,080Individuals who run a home daycare and need comprehensive liability coverage to protect their business and assets


Compare quotes to find the best home daycare insurance. Start by clicking the “Get Quotes” button on this page. 



Compare Cheap Home Daycare Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Home Daycare Insurance Companies

When choosing home daycare insurance companies, there are several reputable companies to consider. Here are some of the top options:


NEXT Home Daycare Insurance

Pros

  • NEXT provides various online tools and resources to help home daycare providers manage their policies and stay up-to-date on industry news and best practices

  • The application process is relatively straightforward, and most policies can be purchased online without requiring a lengthy phone call or in-person meeting

  • They allow customers to choose from several payment options, including monthly, quarterly, and annual, to help make their coverage more affordable

Cons

  • Owners accustomed to maintaining paper records may experience difficulty adjusting to the digital claims process offered by NEXT

NEXT is a top-rated provider of home daycare insurance coverage. Their policies provide comprehensive coverage options, including general liability, and workers' compensation insurance. This company also offers additional coverage for business interruption, equipment breakdown, and more. 

Best for: Best overall; Fastest general liability insurance for home daycares

Average cost: $21 per month 

Our rating: 10/10


CoverWallet Home Daycare Insurance

Pros

  • It can save time and effort by allowing businesses to compare policies and pricing from multiple insurers in one place

  • Offers 24/7 customer support and claims assistance

  • Simple, easy-to-use online platform for obtaining and managing insurance coverage

Cons

  • Not all insurance carriers are available in every location

CoverWallet is another excellent choice for home daycare insurance coverage. They offer a variety of policies to suit your unique needs, including general liability, property damage, and professional liability coverage. 

CoverWallet provides customizable policies with a user-friendly platform for online purchasing and managing your coverage. Premiums for their home daycare insurance policies start as low as $21 per month.

Best for: Comparing home daycare insurance quotes online 

Average cost: $28 per month 

Our rating: 10/10


The Hartford Home Daycare Insurance

Pros

  • The Hartford offers several discounts, including multi-policy, safe driver, and good student discounts

  • The Hartford offers a range of insurance products, including home, auto, and business insurance, so you can bundle your policies and save money

Cons

  • Some customers have reported that Hartford's claims process can be lengthy and difficult to navigate

The Hartford is a well-known insurance provider that offers a range of insurance coverage, including home daycare insurance. Their policies provide comprehensive coverage options such as professional liability insurance. Hartford offers additional coverage options such as business interruption, equipment breakdown, and cyber liability insurance. 

Best for: Competitive pricing and personalized attention

Average cost: $78 per month

Our rating: 10/10


Tivly Home Daycare Insurance

Pros

  • Tailored policies for home daycare providers

  • Customizable coverage options

  • The simple and easy online application process

Cons

  • Limited coverage options compared to traditional insurers

  • Pricing may be higher for larger home daycare providers

Tivly is a newer entrant into the home daycare insurance market, but they have quickly gained a reputation for providing affordable and comprehensive coverage options. They offer general liability, property damage insurance, and additional coverage options such as business interruption and equipment breakdown insurance. Call now to compare quotes over the phone. 

Best for: Comparing home daycare insurance quotes over the phone 

Average cost: $33 per month 

Our rating: 9/10


Thimble Home Daycare Insurance

Pros

  • Thimble's policies are designed to be highly customizable, which allows customers to select the specific coverage they need for their business. This can be especially helpful for small businesses with unique insurance needs that traditional insurers may not fully address

  • Thimble's on-demand policies are ideal for small businesses that only need coverage for specific events or gigs. With the ability to purchase coverage by the hour, day, or month, Thimble makes it easy for businesses to get the insurance they need without paying for coverage they don't need

Cons

  • Limited coverage options compared to traditional insurers: While Thimble's policies are highly customizable, they may not offer the same level of coverage as traditional insurers

Thimble is a unique insurance provider offering on-demand home daycare coverage. They provide general liability coverage for specific periods, such as hours, days, or weeks. Their coverage is flexible and customizable, allowing you to choose the coverage you need when you need it. 

Best for: On-demand coverage for home daycares

Average cost: $31 per month

Our rating: 8/10


Hiscox Home Daycare Insurance

Pros

  • Hiscox offers a variety of coverage options that can be tailored to meet the unique needs of your home daycare business.

  • Hiscox has an A rating from A.M. Best, indicating that they are financially stable and can meet their obligations to policyholders.

Cons

  • Hiscox is not available in all states, so you may not be able to get coverage if you live in certain areas.

Hiscox is another leading insurance provider that offers home daycare insurance coverage. Their policies provide coverage options such as cyber liability insurance and business interruption insurance. The premiums for their home daycare insurance policies start at 

Best for: A wide range of additional coverage options

Average cost: $22 per month 

Our rating: 8/10


State Farm Home Daycare Insurance

Pros

  • State Farm offers optional add-ons such as business interruption coverage, which can help cover lost income if the daycare has to close due to a covered loss.

  • State Farm has a large network of local agents, which can be helpful for home daycare providers who prefer working with a local agent.

Cons

  • May require additional documentation: Home daycare providers may need to provide additional documentation, such as licensing information and safety procedures, to qualify for coverage.

State Farm offers home daycare insurance to help protect home daycare businesses from potential liabilities. Their policies can cover bodily injury, and medical expenses. In addition, they offer business property coverage, which can help cover the cost of repairing or replacing damaged equipment or supplies.

Best for: Individuals who run a home daycare and need comprehensive liability coverage to protect their business and assets

Average cost: $90 per month 

Our rating: 8/10


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