Daycare

Running a daycare is immeasurably important and difficult. Having complete coverage allows the business owner to focus on caring and growing the next generation. As you know, parents are not always rational when it comes to their children and a claim against you without liability coverage, no matter the waiver, can put you out of business.   Give us a call to discuss your current program or create one for you. The piece of mind of being covered will allow you to focus all of your attention on whats important.                                                                                               Call me if you have any questions:                                                                                                                      Carissa Clements-Moock                                                                                                                                             Email: cclements@trueassoc.com                                                                                                                                                                                                                                                                                                                                                                                                                                   Below are available coverages and a brief description of how they apply to daycares.  

Liability Protection

We live in a litigious society. Even if a claim against you is baseless the daycare owner will be responsible for court cost and settlement, regardless of hold harmless or waiver. Liability insurance provides coverage for settlement, court costs and legal fees associated with any covered event.
  • General liability: This insurance is necessary for any business that welcomes the public onto its property. This provides coverage for property damage or personal injuries suffered by third-parties while they are in your place of business. This is particularly important when dealing with children as they have a tendency to get injured. In most cases, the injuries will be minor, but if an injury is severe enough to require medical attention, your facility may be liable for the expenses.
  • Premises liability: This provides coverage for the area surrounding your daycare facility including the parking lot and play areas. If anyone is injured due to your failure to properly maintain a safe environment, your business may be held liable for any ensuing medical bills or property damage.
  • Professional liability: This insurance covers your teachers and childcare workers. If your business is sued because a member of your staff has shown negligence or indifference to the children’s needs and safety, your business can be sued. Lawsuits can spring from mental, physical or emotional abuse of the children.
  • Commercial vehicle liability: This is required if your daycare business has company owned vehicles that are used to transport children to and from schools.
  • Non-owned or for hire auto liability: If you or any of your workers are likely to be driving children in privately owned vehicles for the purposes of field-trips or other outings, your business can be held liable for injuries or property damage if the driver is in an accident. This insurance covers privately owned vehicles when they are being used for company business.
  • Corporal punishment liability: If one of your employees strikes a child or is accused of administering corporal punishment, your business can be held liable.  This insurance option provides financial protection if you face a claim.
  • Abuse and molestation liability: If an employee of your daycare turns out to be sexually or otherwise abusive, your business can be liable for extremely expensive fines and medical payments. This insurance coverage will protect your business from severe financial losses. Beware of policies with defense cost included in the limit.
  • Umbrella liability protection: This coverage provides additional liability protection beyond the limits of your insurance policy’s liability limits. Larger daycare facilities may benefit from this added coverage.

Property Insurance

Keeping a child engaged and protected requires a lot of toys and equipment. Property insurance will  reimburse you for any covered lost, stolen or damaged contents in addition to covering the building and property. If you run the daycare out of your own home you can add a small rider to your homeowners policy. This is a delicate scenario and the business owner should go through his/her insurance agent  to ensure full protection.
  • Building coverage: This provides coverage for damages to the structure of the building in which your business is housed.  It provides compensation for damages caused by fire, severe weather, falling objects and property crimes. Additional insurance may be necessary for damages caused by such things as floods and earthquakes.
    • If you rent your business space, you will not need this insurance coverage.
    • If you are working out of your home and you have a dedicated space for your daycare operation, you may need to add a small rider to your homeowners insurance policy.
    • If you own a daycare building, you will want to be certain that you protect your investment with this insurance.
  • Contents coverage: This provides coverage for damages to indoor items you use for childcare purposes. This can include cribs, toys, books, sound systems, and electronics. If any of your business property is lost or damaged by fire, extreme weather, vandalism or theft, you may be able to receive reimbursement for your loss.
  • Outdoor equipment coverage:  Most daycare establishments include outdoor equipment such as swing-sets, sandboxes and sports equipment. In many cases coverage for loss or damage to this property will be included in your contents coverage, but some insurers will require you to purchase a separate endorsement for outdoor equipment.

Additional Coverages

Below are “special” coverages applicable to daycares that are not automatically built into commercial policies but can be endorsed on for a small surcharge. Workers compensation is required to an extent depending on the size of your business. Getting it through the state typically comes with a surcharge (up to 35% of premium in NJ) so consult an agent for more efficient options.
  • Field trip insurance: This provides liability and property damage coverage while you are providing childcare services off-site.
  • Special events liability coverage: If your facility hosts a special event such as a holiday party, a fundraiser or a pageant, this one-time insurance policy can provide liability protection during the event.
  • Lost income insurance: If your facility is forced to temporally close its doors because of a covered event, this insurance will provide a continuation of income so that you can continue paying employee salaries and monthly expenses until your business is able to reopen.
  • Workers compensation: This provides medical coverage for your employees if they are injured on the job. Every state has its own laws pertaining to workers compensation insurance, so you will need to make certain your daycare business is compliant. Many daycare insurance companies allow you to purchase this coverage as an addendum to your policy.
  • Alienation of Affection: This protects you against claims that you are “stealing the affection and control” of a child.
  • Accident Medical Coverage: This pays medical bills resulting from an accident, even if it is not your fault. Be sure this coverage is without a deductible.
Most daycares are run by hard working individuals who care about their community and it’s children. Give us a call to discuss your current program to ensure you are protected.  

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