Many families are anxious about sending their children to daycares that are not overseen by friends, family members, or other people they know well. Taking care of children is therefore a huge honor and responsibility, and carrying daycare insurance shows that you take your business and the care you provide seriously. It also protects you financially if you encounter any issues with your business by giving you a way to pay for medical, legal, and other expenses without dipping into your own savings.
Daycare Insurance Policies
Most states require home daycare businesses to carry liability insurance in order to receive their licenses. In addition to the basic insurance required, a number of other policies are available to give you additional financial protection for a variety of specific situations. You can attach your daycare insurance to your homeowners insurance policy if your business is a smaller one, but you may need a commercial insurance policy if your daycare is larger or if you need higher coverage limits. Whichever type of policy you choose, daycare insurance protects daycare owners from liability and gives them peace of mind, so it is worthwhile to explore your insurance options carefully.
General Liability
There are several types of daycare insurance available, with general liability insurance one of the most common. This coverage helps cover costs to replace damaged equipment necessary to your business, such as educational toys, car seats, and bottle warmers. If a child is injured while at your daycare, general liability insurance also helps cover any legal or medical expenses required if the parent of the injured child sues you. Without this coverage, you will be responsible for paying all of these expenses yourself, which could be costly and damage both your personal and professional finances.
Commercial Auto Liability
Many home daycares use vans and other vehicles to transport children to activities like visiting the park or even picking them up or dropping them off each day. If your daycare has a company vehicle, it is important to have commercial auto liability insurance. Like your personal car insurance, this policy will help pay for damage done to your car and for medical expenses related to any injuries sustained in an accident. Not having this insurance can not only put you at risk for serious traffic violations, it also puts your employees at risk if they are found responsible for paying resulting legal or medical fees.
Corporal Punishment Liability
While corporal punishment is no longer a widely accepted-way to discipline children, it is possible that you or an employee may act carelessly in frustration or that a child will accuse someone of hitting them, causing a serious financial burden. Parents may be quick to pursue legal action in these cases, and corporal punishment liability will help you pay for expenses related to these cases.
Abuse & Molestation Liability
Children are particularly vulnerable to sexual assault because of their lack of autonomy and the constant care they need. Unfortunately, this can make them targets of abuse, and many assaults are carried out by people with whom the child is familiar. This can include your daycare employees. If one of your employees is accused of or is found to be sexually abusing a child, you may be required to pay for fines, legal costs, and medical expenses in relation to the case. Abuse and molestation liability insurance ensures that you have the funds for these payments if necessary and that the victim can get the care they need to begin recovery.
Umbrella Liability Protection
There are many variables when it comes to choosing the amount of coverage you will likely need because there are so many unexpected situations in which you may need to pay for legal, medical, and other expenses related to your business. Umbrella liability insurance helps pay for them. This type of insurance helps pay for expenses that go beyond your established coverage limits and for some situations that may not be covered by other insurance policies, ensuring that you always have financial support if needed.
Choosing a Daycare Insurance Provider
When it is time to choose an insurance company, be sure to sign with one that provides comprehensive daycare insurance coverage and plenty of coverage options to be sure you are getting the right policies for your needs. JMG Insurance Agency offers a number of insurance options, including all of the policies previously discussed, to help protect your finances no matter what happens. Reach out to JMG Insurance Agency for more information about daycare insurance and to begin selecting your insurance policies.