Daycare Insurance

Children learning new ways to interact with the world every day are more accident-prone than adults. Natural curiosity, combined with poor motor skills, can lead to unfortunate situations.

Insurance is an essential part of any daycare center business plan because it can take moments for an accident to happen. Whether you are running the center at your home or on business premises, you need to consider the unique risks to your business and how you can address them. Insurance companies tailor these policies to suit the special needs of a daycare center or home daycare.

What is daycare insurance?

Daycare insurance combines different elements of business insurance policies to provide complete coverage for daycares. It has special provisions for the coverage of premises, equipment, and risks associated with childcare.

What does daycare insurance cover?

Daycare insurance covers your supplies, equipment, and any other on-site property. It also covers professional liability, thus protecting you and your employees. Lastly, it can offer reimbursements for lost income in special cases.

Should I get daycare insurance?

With daycare businesses, it is more important to get insurance than with other product-driven ventures. Because it is a service-driven business, frequent interactions with clients can create many safety liabilities. Apart from worrying about employee safety in the work environment, business owners with a large amount of client traffic have to prepare for potential gaps in customer safety. Daycare insurance can ensure that you are protected from these kinds of risks, making it essential if you own such a business.

Unique Features of Daycare Insurance

Daycare insurance coverage differs from the average business liability insurance. Different providers offer varying approaches. However, there are a few features that are common to most policies.

<b>1. Commercial Property Insurance</b>

1. Commercial Property Insurance

This feature covers the equipment and supplies needed for a business' operation. These would include food, childcare items, and specialized furniture for toddler and infant care in a daycare. Depending on the insured events, it can protect the items in your business from vandalism, theft, or fire damage. It is applicable for both owners and renters.

One important feature of commercial property insurance is Business Interruption Insurance. In addition to protection from physical damage, policies with this feature add protection from financial strain. In cases where an accident creates a situation where you must close down for repairs, Business Interruption Insurance reimburses you for the income lost during the interruption. For example, if a break-in caused damage to any property, such a policy would reimburse the cost of the damaged property and refund the revenue lost during the time required for repairs.

<b>2. Commercial General Liability Insurance</b>

2. Commercial General Liability Insurance

This type of insurance protects your business from liabilities associated with childcare. These liabilities extend to personal damage, third-party property damage, and physical damage. Commercial general liability insurance is an essential feature of your insurance policy because it can cover any medical fees involved in an accident. It can also cover legal expenses, regardless of the results.

Taking care to ensure child safety is essential for daycares. But safety policies are not foolproof. Children often engage in innocent games that may result in injuries, leaving the daycare vulnerable to financial liability claims. For example, if a child trips and falls, you may face a lawsuit from their parents. The insurance company will handle the legal fees for the ensuing bodily injury suit with a Commercial General Liability policy.

<b>3. Professional Liability Insurance</b>

3. Professional Liability Insurance

No matter how careful you and your staff are, it is natural for human error to create small gaps in care. These mistakes may be unintentional, but the consequences can be enormous. Also known as Error and Omissions Insurance, Professional Liability Insurance can protect your staff from such mistakes. Should a parent file a lawsuit for negligence or misconduct, relatively low daycare insurance premiums can protect your business from a much more significant loss.

The Main Take-Away

Getting an insurance plan for any business is always advisable. Not only does such a plan protect your assets, but it also gives you peace of mind. When you have the assurance that a competent party can handle all your damage concerns and legal issues, you can better dedicate yourself to growing your business.

Learn more