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.
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.
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.Â
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can 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.
Medical expenses of the claimant
Reimbursement for the damaged property of the claimant
Attorney and investigation fees
Settlements
Court judgmentsÂ
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
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.Â
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.Â
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Yes | No |
| 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.
Investigation fees and attorney fees
Settlements
Court judgements
Reimbursement to the financial losses of the claimant
Sexual abuse and molestation coverage–This coverage can help protect daycare providers from claims of sexual abuse or molestation by an employee
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 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.Â
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.Â
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
The coverage limits for accident medical insurance for home daycares can range from $5,000 to $50,000 per occurrence.
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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| NEXTÂ | Thimble | Hiscox | The 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/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| 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.
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
Damage or theft of playground equipment
Loss of toys or furniture due to a fire or natural disaster
Equipment failure upset, mishandling, and electrical surgeÂ
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)
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
| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| 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 signs | Excluded | $2,500 | Excluded | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Excluded | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
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
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.
