Whether you babysit just a few children or operate a family daycare in your home, the ability to earn income in the home can be an amazing opportunity. Doing daycare at home also allows parents to stay home with their own young children instead of paying for daycare elsewhere while they work. Of course, even home daycare providers face certain risks. From damaged property to unexpected injuries, it is important to be prepared for events that could arise while performing job duties. To help minimize these risks and their financial impact, many daycare providers now obtain daycare insurance.
What Is Daycare Insurance?
Daycare insurance, otherwise known as childcare insurance, is a specialized type of insurance designed to meet the unique needs of in-home childcare providers. With daycare insurance, providers can remain protected against certain liabilities, such as property damage and personal injury. Many of these policies are also customizable, allowing childcare providers the ability to specifically cater their policy to their business’ unique needs. Running a daycare can be challenging work. With daycare insurance, you can maintain peace of mind that your business is protected against the unexpected.
Do I Need Daycare Insurance?
If you operate a daycare in your home or spend hours everyday babysitting children, having daycare insurance is a must. When it comes to children, it is always important to take extra precautions. Having daycare insurance can help ensure that you are not held financially liable if an accident should occur that causes costly property damage or results in expensive medical bills. In addition, most states now require home daycare businesses to carry some type of business liability insurance in order to meet licensing requirements. Remember, no matter how few children you are caring for, your existing general liability policy does not cover liabilities associated with children.
Having daycare insurance can also be beneficial in other ways. When trying to attract new families to your daycare business, having a daycare license can help show potential families that you are qualified and have taken extra measures to protect your business. As not all daycare businesses are the same, it is important to find a policy that meets the unique needs of your childcare operation. Fortunately, you can personalize your daycare insurance policy so that it provides just the right amount of coverage based on the size of your business. If you are not sure if you need daycare insurance, speak with an insurance broker about your options.
What Does the Policy Cover?
You may be wondering what exactly daycare insurance covers. If you operate a home daycare, having a daycare insurance policy could help cover any legal costs you face in the event of a lawsuit. An accident can happen at any time, especially when young children are involved. Even if you are not found at fault, you may be responsible for certain expenses. Oftentimes, these expenses are so significant that daycare providers are forced to shut their doors for good.
With home daycare insurance, you can protect your business with coverage such as:
- General Liability – Having general liability coverage is a must if you run a home daycare. This type of coverage can help cover costs associated with legal or medical expenses, such as if you are sued by a parent due to an injured child. It can also help cover the cost of equipment replacement when a piece of equipment becomes damaged. Some policies may also cover misconduct, abuse, or negligence by your employees.
- Commercial Auto Liability – If you use any type of vehicle to transport your daycare children, having a commercial auto liability policy is essential. In fact, this is usually a requirement for any home daycare that is a licensed business.
- Corporal Punishment Liability – Claims regarding corporal punishment can result in serious damages. With corporal punishment liability coverage, you can remain protected if you should ever face a claim that accuses you or one of your employees of hitting one of the children.
- Abuse and Molestation Liability – If you or one of your employees is accused of sexually abusing a child under your care, abuse and molestation liability coverage can help protect your business financially against legal costs, medical expenses, and associated costs.
Speak to Professional Specialty Insurance Brokers
You work hard to care for the kids under your care. Unfortunately, accidents and mishaps can occur at any time, leaving your business and livelihood at risk of financial ruin. In the same way that you would protect your home or car from the unknown, it is important to protect your daycare business. A daycare insurance policy is an affordable way to keep your home daycare protected from certain liabilities. For more information about why you need a daycare insurance policy or to acquire a policy, contact the professional specialty insurance brokers at JMG Insurance Agency.