Home Daycare Insurance – What is it and Coverage

If you are a home daycare provider, your type of business gets you involved with different children, which may result in risks such as lawsuits. Some of the risks associated with your type of business are abuse accusations, slips and falls, faulty toys, and so on. Getting home daycare insurance is a good idea to prevent making these payments out of pocket.

Home Daycare Insurance

When having a home daycare, it is important to buy the best homeowners insurance and the best in-home daycare insurance. This insurance covers the cost of unforeseen events likely to affect your business finances. This insurance offers various insurance policies and coverage. Some states may not require daycare providers to have insurance coverage for their businesses, but it is advisable to get one personally to protect you and your business.

What is Home Daycare Insurance?

Home daycare insurance is also referred to as childcare insurance. It protects home daycare providers from risks and liabilities they may face. This insurance may likely be a type of home business insurance for smaller home daycares, while it may be a small business insurance for bigger home daycares. It offers financial protection for events such as property damage and lawsuits that may occur while caring for children.

Does my Homeowners Insurance Cover my Home Daycare Business?

While homeowners insurance covers everything in the home, home daycare is not covered under this insurance policy. Some home daycare business owners may assume their business is covered under their homeowners’ insurance policy, but unfortunately, it is not. Some homeowners insurance policies offer additional insurance coverage.

This means you must buy this coverage on your homeowner’s insurance policy. You can easily add this coverage to your homeowners’ insurance policy. But you can only do that if you have three, six, or more children under your care. This, however, depends on your insurer.

What does Home Daycare Insurance Cover?

Whether you add it to your homeowner’s policy or buy a separate policy, understand what’s covered in your insurance. Sometimes getting this insurance as an endorsement on your homeowner’s insurance policy can be insufficient for your daycare business needs. You may even decide to get the standalone policy. Below is what it covers.

General Liability Coverage

Meanwhile, it is mandatory to get this coverage for your home daycare business. This coverage covers property damages and accidental injury expenses caused by your business to others. General liability insurance is important for your business if you care for children. This is because accidental injuries are likely to occur often. Some injuries may be minor, while others may require the attention of a doctor.

Commercial property Insurance

If you have any property or equipment used daily for your daycare business, this insurance coverage covers payments if they are ever damaged through a problem outlined in your policy.

Professional Liability Coverage

This insurance coverage covers claims for mistakes related to your business. In addition, it covers lawyer fees, settlements, and legal judgments if your business gets sued.

Commercial car Insurance

If your home daycare business makes use of cars to transport children, it is advisable to get this coverage. Business vehicles are not covered under a personal car insurance policy.

Non-owned car liability coverage

For home daycare businesses that use a personal or school vehicle to transport children, non-owner care liability coverage is advised. It covers damages and injuries sustained if there is an accident. However, this coverage is for private cars only.

Corporal Punishment Liability Coverage

In cases where staff is accused of hitting a child and a lawsuit is filed, this insurance coverage will cover legal judgments and settlement bills.

Abuse and Molestation Liability Coverage

This policy covers you and your staff if you ever get sued for molestation or abuse of a child.

What It Does Not Cover?

Just as this insurance covers quite several events, some events are not covered under this insurance. These include:

  • Adult care.
  • Nuisances on your property.
  • The number of children.

If your home daycare business has these included in it, they will not be covered under your home daycare insurance.

When do you need Home Daycare Insurance?

You need this insurance when:

  • Your home daycare is in your home.
  • You have employees.
  • Children are transported.
  • You are registered or licensed.
  • You use your personal property for a daycare business.

In these cases, you should get a home daycare insurance policy for your business.