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So where can you buy unlicensed daycare insurance? Quotes, costs & liability coverage for in-home unlicensed childcare providers who work out of their homes.

Unlicensed Daycare Insurance

Running your own daycare is an incredibly rewarding career, but it comes with increased risk and exposure to liability.

To keep you and the children in your care safe, it is crucial to comply with your state’s daycare facility guidelines and to develop a comprehensive safety plan.

However, even when you take all the right steps, things can still go wrong. This is why it is so important to have an unlicensed daycare insurance plan in place.

Licensed vs Unlicensed Daycare

There are two main types of daycares in operation across the country: licensed and unlicensed. Licensed daycares tend to be established free-standing childcare facilities with multiple staff members. These individuals typically have post-secondary education focusing on early childhood education and development. Daycares that are licensed also tend to cost a bit more. Some parents find them to be a bit cold and unwelcoming.
Unlicensed daycares are those that are not registered with the state or government. Childcare of this nature tends to take place inside a person’s private home. Parents often prefer this type of daycare arrangement, as it offers a more personalized, comfortable approach. Providers do not always have degrees, diplomas, or advanced education in early years. Instead, they tend to be parents with young children or older parents who now have an empty nest. Most states have limits or rules on the number of children each unlicensed provider is permitted to care for, and in some cases, they may require additional unlicensed daycare insurance.

Liability Insurance Requirements

Not all states require unlicensed daycares to carry their own insurance. Even if your state does not mandate insurance, you should still invest in a policy. When you are caring for children, a lot can go wrong in the course of day. These events can range from minor injuries to major incidents. Having insurance in place is the best way to go about your day with peace of mind. Should the worst happen, you know that you and your family are protected.

An affidavit or waiver signed by the child’s parent or caregiver is not enough protection. These documents simply let the parents know that you do not carry insurance, and if they want to sue for damages, they will still sue you. Do not risk the high legal fees associated with any type of lawsuit by investing in a comprehensive child care insurance plan.

Review Your Existing Policy

Since the obligation for unlicensed daycares to obtain insurance is not uniform across the country, many people believe that an existing homeowner’s policy provides enough coverage. This is not usually the case. Certain polices cease covering you and your home when it is being used to earn an income. If an injury or accident happens during the course of the operation of your daycare, you can be held personally liable.

Never assume that an existing policy covers any additional activities beyond using your home as a family dwelling. If you are operating an unlicensed home daycare, you should check with your insurance agent to find out exactly what type of coverage applies. In some cases, you may be able to find a rider or some form of add-on package extending your policy, so it covers your daycare activities as well.

In addition to investigating your homeowners’ insurance policy, you should also explore other unlicensed daycare insurance policies that apply to business, such as general liability insurance and professional liability insurance, if applicable. General liability insurance is a wise investment to make, as it covers you when you are away from the home as well. Many providers enjoy taking the children in their care on field trips or other excursions, and general liability insurance insures you are protected. Daycare insurance requirements, child care business insurance cost, state farm daycare insurance, assure child care insurance reviews & does insurance cover daycare.

Unlicensed Daycare Insurance - The Bottom Line

We hope this article on unlicensed daycare insurance was informative. Trying to figure out your complete insurance needs can be tricky, especially if you are running an unlicensed daycare out of your home. There are only a few companies that write commercial insurance for unlicensed daycares, so you need to take your time and find the right one. Protecting yourself should the worst happen is important, as it allows you to continue running your child care business and earning an income for your family. If you have questions or concerns about the best policy for your unlicensed daycare, get in touch with an insurance expert today.

Further Reading On Daycare Insurance

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
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