What does daycare liability insurance cover? This type of commercial insurance offers liability insurance coverage, business property coverage and other optional coverages like abuse & molestation to protect the daycare from legal liability and expensive lawsuits.
What Does Daycare Liability Insurance Cover?
Insurance coverage is something that every business needs to protect itself from unforeseen circumstances. And when it comes to something sensitive as a childcare business, it is a must. Even if you have the safest facility and expert staff to handle toddlers and children properly, accidents can strike at anytime in a daycare.
During stressful situations, such as a child getting injured injured, you need someone to help you cover your back. And we at EK Insurance are here to do just that. With special insurance coverage tailor-made for childcare and daycare center needs, we understand the peace of mind you are looking for and focus on the pain points of your business to ensure you have the best coverage possible in the unlikely case something bad happens.
So what does daycare liability insurance cover? Here are some of the coverages why every daycare needs liability insurance:
Daycare Liability Insurance
We live in a litigious society. There are many ways you might be on the receiving end of liability lawsuit - whether the allegations are real or not. Even if you are found not liable, the legal fees can be very, very expensive. What does daycare liability insurance cover? Liability insurance for childcare offers coverage for court costs & legal fees if the action is covered in your policy. Following are some the most common childcare liability insurance coverages:
- Abuse and Molestation: If an employee is sexually or otherwise abusive, your child care can be liable for large fines and medical payments.
- Commercial Auto: Needed if daycare business has company owned vehicles that transport children to and from schools. You might also need Hired And Non-owned Auto coverage if you or any of your employees are driving children in their own cars, or you are renting vehicles for field-trips or other outings.
- Corporal Punishment: If one of your employees strikes a child, your child care can be held liable.
- General Liability: Provides coverage for bodily injury or property damage by third-parties (children, parents, vendors etc.) while they are in your daycare.
- Professional Liability: Also know and errors and omissions, it covers your childcare workers and teachers from lawsuits alleging negligence to the children's needs and safety. Lawsuits can be for allegations of from mental, physical or emotional abuse of the children.
- Umbrella: Offers excess liability protection beyond the limits of your base liability policies limits.
Why You Need Daycare Liability Insurance
Whether it's a medical issue or a property damage issue, our extensive insurance coverage ensures you never get backed into a corner in emergencies. If you haven't considered getting childcare liability insurance for your business, now might be the right time to do so. Following are some important reasons why child care business's need liability insurance:
Daycare Insurance Is Required for Licensing
To be licensed by the Department of Health and Human Services (DHHS) you need to have daycare insurance coverage, or else you won't be qualified for the license. This is because the DHHS isn't interested in licensing companies that might potentially end up getting into lawsuits. A childcare liability insurance policy ensures that you have met the stringent requirements that will minimize the chance of malpractice lawsuits.
What does daycare liability insurance cover? Childcare liability insurance has more liability coverage than a standard home insurance. A typical daycare insurance policy includes coverage for general liability, premise liability (adjacent areas to your business like parking lots), professional liability, commercial vehicle liability, abuse and molestation liability and much more. With all these liabilities covered under one package, you won't have to seek any extra insurance documentation again.
A daycare insurance policy is your biggest protection against any kind of lawsuit, which is why the DHHS prefers to license insured and bonded daycare institutions. Most childcare liability insurance policies will provide you the legal costs of a lawsuit and pay damages if necessary as per the amount mentioned in the insurance policy.
Homeowners Insurance Won't Cut It - Even for In-Home Daycares
Daycare insurance beats homeowners insurance. While it is a common practice among many business owners who run daycare centers to use homeowners insurance for documentation purposes, it doesn't come anywhere the security and peace of mind that a daycare insurance provides.
Even if you are running a home daycare, you have to realize that your homeowners insurance is only protecting your property. It's not protecting you from any of the liabilities that accompany the daycare business itself.
Daycare is Getting "Riskier"
The child care industry has boomed in the last couple of years and with it the associated risks and expenditures have gone up as well. If the current state of the US daycare industry is any indication, a lot of incidents and accidents happen in daycare centers and the only way to prevent any loss on account of them is by protecting yourself with a rock solid insurance policy.
Peace of Mind For Parents
When you can show that your business is well insured, you will boost your clients' sense of security. There are many stories of malpractice and abuse in this industry, so documentation of insurance coverage safeguards the interests of the clients and their child. They will know you are a professional business with professional grade insurance - should an accident ever happen.
What Does Daycare Liability Insurance Cover? - The Bottom Line
We hope this article on what does daycare liability insurance cover? has been informative. While you might be worried about the costs associated with insuring a childcare business, they are negligible compared to the risk of not being insured. All it takes is one incident to bankrupt your business. Remember, also, that even if you think that you've got everything under control, you can't keep an eye on all of your employees all of the time.
Accidents happen, and when they do, you want to be prepared. No one plans on wrecking their car, but they carry auto insurance just in case. They carry it for their own peace of mind, and that of other drivers. Insuring your daycare follows the same principle. Do it for yourself, and do it for your clients - just in case.
Many people think that huge costs are associated with daycare insurance. Wrong! Let the experts at EK Insurance help you get the best childcare liability insurance coverage for your business. Rest easy knowing that you've got a policy that protect your operations. Whether you're thinking of starting a new childcare business or have been up and running for a while with EK Insurance handling covering your back, your daycare will be safe for years to come!
Further Reading On Daycare Insurance
- Commercial Daycare Insurance
- Daycare And Childcare Insurance Quote
- How Much Does It Cost To Insure A Daycare?
- Unlicensed Daycare Insurance
- What Does Daycare Liability Insurance Cover?
Insurance Classification Of Daycares
Insurers classify childcare businesses using several coding systems. You can wind up paying more for your insurance if your childcare is not properly classified - like an in-home daycare being coded as a commercial center. Below are the three most commonly used coding systems for commercial daycare insurance:
- ISO General Liability Codes: 41715, 41716
- NAICS CODE: 624410 Child Day Care Services
- SIC CODE: 8351 Child Day Care Services
- Suggested Workers Compensation Code: 8869
SIC Code 8351 - Child Day Care Services
Here is the official OSHA SIC code description for daycare:
Establishments primarily engaged in the care of infants or children, or in providing prekindergarten education, where medical care or delinquency correction is not a major element. These establishments may or may not have substantial educational programs. These establishments generally care for prekindergarten or preschool children, but may care for older children when they are not in school. Establishments providing babysitting services are classified in Industry 7299. Head Start centers operating in conjunction with elementary schools are classified in Industry 8211.
- Child care centers
- Day care centers, child
- Group day care centers, child
- Head Start centers, except in conjunction with schools
- Nursery schools
- Preschool centers