Home Daycare Insurance

What is home daycare insurance? Do you need it?

Home daycare insurance is a home business insurance that many carriers will allow you to add for an extra cost to your standard home insurance policy. This endorsement increases your business’s liability coverage so that you won’t be personally liable for damages if a child gets injured while in your care.

Yes, you need home daycare insurance to protect your business. Most home insurers will not allow you to have more than 3-6 children to qualify for a home daycare endorsement. But it varies by each insurer. If you run a bigger business, you’ll almost certainly need to obtain a separate commercial insurance policy.

Does homeowners insurance cover my home daycare?

No. A regular home insurance policy does not cover businesses operating on your property, such as a home daycare. Even though most home insurance policies provide up to $2,500 in-home business property coverage, they do not cover personal liability. So, if a child gets injured while in your care and you get sued for damages, you must pay any medical and legal bills.

The three types of home daycare insurance

An excellent home daycare insurance plan is the best way to prove your value and build on your trust with your clients. Here are the most common home daycare insurance types that will set you apart.

What does home daycare insurance cover?

Home daycare insurance policies differ with each company. But most ones will have the right mix of liability and property coverages, including the following.

• 1. General liability coverage: Protects you from lawsuits and expensive medical bills if a child becomes injured while in your care, including accidents in the play area, while using educational materials, or while sitting on your furniture.
• 2. Accident medical coverage: Offers coverage for children injured in your care whose medical bills don’t get by their parent’s health insurance policy.
• 3. Professional liability coverage: It protects your company from lawsuits due to negligence. For instance, if one of your daycare employees accidentally gives your child peanuts, who’s allergic to and their parent sues you for damages.
• 4. Commercial auto liability coverage: Protects you if an accident occurs while transporting children in your care.
• 5. Corporal punishment liability coverage: It helps you pay legal fees if your staff beats a child in your daycare and the parent sues you.
• 6. Abuse and molestation liability coverage: It covers legal fees and any judgments levied against your company if you or a staff member is found to be abusive.
• 7. Error and omissions liability coverage: It protects you if you are accused of malpractice and are found legally liable for damages.
• 8. Umbrella liability coverage: It increases liability coverage limits above the typical maximum provided by standard daycare insurance policies.
• 9. Property coverage: It offers coverage for damage to property specifically used for your daycare, such as playground equipment and educational supplies.

Who needs home daycare insurance?

Most states necessitate all at-home daycare businesses with a certain number of children in their care to get insurance. The insurance details and coverages you’ll require varies based on your state and the size of your daycare. You’ll need home daycare insurance if you own or operate the following.

• Programs for before and after-school care
• Preschool education program
• A religious or non-profit daycare center
• Summer day camp

What insurance is right for your home daycare?

Which insurance you require depends on the type of business. You won’t require coverage to babysit your nephew or grandchild. Insurers won’t consider your home daycare a business if there is no money exchange. If there is an exchange of money, you must get a daycare insurance endorsement. The coverage you require also depends on the size of your home daycare.

Consider an extra commercial policy if you already have several children in your daycare or plan to enlarge your business. Also, standard home daycare coverage does not apply if you are the sole proprietor. If your company grows and you hire more employees, you should get a commercial insurance policy.

How much does home daycare insurance cost?

Because each home childcare business is unique, insurance costs vary based on individual requirements, such as the preferred amount or type of coverage. You can generally expect to pay between $412-$1,362 in annual insurance costs for your home daycare business. Additionally, if you own a commercial daycare center, your annual insurance premiums could range between $1,012-$3,512.But it depends on the following factors.

• The location of your daycare
• The number of workers you have
• The number of children under your care
• The specific coverages and limits that your policy comprises of

Most Next Insurance customers pay an average of $658 per year for general liability insurance for their in-home daycares. However, adding professional liability coverage to the policy increases the insurance cost by around 4%-8%.

Companies that offer home daycare insurance

Are you looking for the best home daycare insurance companies? Then start by comparing quotes from the following companies.

• Next Insurance
• Assure Childcare
• American Family Insurance
• Markel Insurance
• JMG Insurance Agency

Additional insurance to consider for your home daycare

So are you concerned that your daycare insurance will not provide adequate protection? If so, you may consider adding supplemental insurance to your policy, like the following.

• Workers’ compensation: If you have employees at your home daycare, you should consider getting workers’ compensation insurance. If an employee gets injured while working, this pays for lost wages and medical expenses.
• Loss of income insurance: If your daycare temporarily closes due to a covered incident, this insurance can help pay employee salaries and business overheads.

Home daycare insurance exclusions

State laws or guidelines from insurers usually impose strict limits on the number of children (other than your own) who can be in your care. This policy endorsement typically prohibits adult in-home care. Furthermore, suppose you have an attractive nuisance on your property, like a trampoline or swimming pool. Then the insurer will reject your home daycare insurance application. Some playground equipment may fall into this category, making you ineligible for coverage.

Home daycare insurance considerations

There are some factors to consider when looking for the best coverage for your home daycare center. For instance, suppose you plan to use your vehicle for business purposes. In that case, you must find the best auto insurance option. Otherwise, your insurance company may refuse to cover you during an accident.

Most homeowners daycare endorsements provide only limited coverage. Things like ‘corporal punishment liability’ or ‘abuse and molestation liability’ doesn’t get coverage. An ‘aggregate limit of liability,’ or a yearly combined cap on your liability and medical payments coverage, may also apply to you. Once you reach this limit, there won’t be any additional coverage for the remainder of the year.

So, it may be sensible to research a commercial policy, particularly if you are considering expanding your business. It also ensures that you and those under your care get adequately protected.

Summary

When running a business, you have to deal with risks such as accidents, theft, vandalism, property damage, workplace injuries, etc. A home daycare center is no different. When these issues happen, you may get knocked down by the damage and halt operations.

Or you can pick yourself up and continue as if nothing had happened. Everything depends on how well you’ve prepared. Having proper home daycare coverage gives you peace of mind, knowing that you’ll be able to go forward quickly, even if an unforeseen event occurs.

How to file a home insurance claim for daycare with Way.com

Some insurers offer home daycare insurance policies. But do you have a home insurance policy? If not, how can you get an affordable home insurance policy? That’s where Way.com becomes your best friend!

You should use our app or website to get quotes from insurers in your area. Then you must compare them and buy a policy with the most affordable rate. Do you need help filing a claim? You can easily do this using our website. Also, our agents in your area can help you. They will help you understand the most complex insurance terms, rules, coverages, and discounts. Also, they will guide you in filing a claim quickly!