Home Daycare Insurance
Running a small at-home daycare can be a gratifying entrepreneurial endeavor — but apart from keeping the tiny tykes entertained, your main duty is keeping the kids safe from the unexpected. And as a small-business owner, it’s your responsibility to make sure you have the right insurance in place to protect your business from the unexpected, too.
What Is Daycare Insurance?
Daycare insurance, or childcare insurance, is coverage designed to meet the needs of small, at-home daycare providers. With American Family Insurance, our daycare coverage offers limited property and liability coverage that, when added to your policy, is an extension of your homeowners insurance.
You may think that your at-home daycare is covered by your standard home insurance policy, but you’ll actually need to add our home daycare coverage if you want coverage for liability events — such as if a child slips on spilled milk — or coverage for damage to your business property — such as a fire destroying your daycare equipment.
Who Needs Home Daycare Insurance?
Most states require a home daycare business to carry liability insurance in order to meet licensing requirements. Keep in mind, the coverage we offer is limited to small in-home child care businesses of six children or less.
What Does Home Daycare Insurance Cover?
When you add our home daycare coverage to your homeowners insurance policy, you’re extending the same liability limits and coverage of your personal home insurance to your small business.
While this added protection gives you peace of mind, you’ll want to make sure the limits are adequate for your business. Depending on the size of your daycare, you may need to consider a commercial policy, which is separate from your home insurance policy and a more extensive option with broader coverage for your business.
Liability Protection for Home Daycares
Home daycare insurance can help cover legal costs in the event of a lawsuit. Accidents happen, and even if you’re not at fault, you’ll need to protect yourself and your business from these expenses. Home daycare insurance can help with things like:
General liability. This coverage can help with the costs to replace damaged equipment or help cover legal and medical expenses should you be sued by the parent of an injured child.
Professional liability. If you have employees, this will help cover legal and other costs related to lawsuits regarding their conduct. An employee who is accused of negligence or other abuse can seriously harm your business if you don’t have coverage.
Commercial auto liability. Any company-owned vehicles you use to transport kids will need to be covered should the unexpected happen. This is usually a requirement for home daycares with business vehicles.
Corporal punishment liability. If you or one of your employees is accused of hitting one of your charges, you could be held liable for the legal costs. This coverage helps protect you in the event of an insurance claim.
Abuse and molestation liability. Similar to corporal punishment liability, if one of your employees is accused of or found to be sexually abusive to a child under your care, this liability coverage can help protect your business financially from any fines, legal costs or medical expenses you are required to pay.
You might also consider umbrella insurance to help cover costs that go over the amount of liability coverage you have. Not sure how much coverage your daycare business needs? Connect with one of our expert agents who will guide you through your options and help you pick the right coverage that revolves around your business’ property and liability risks.
How Much Does Daycare Insurance Cost?
Just as every childcare business is unique, the cost of daycare insurance is unique to each business. But to give you an idea, you can probably protect your business and its future for less than you spend on the kids’ snacks for a year.
With proper insurance in place, you can run your daycare business with peace of mind, knowing you’re protected if the unexpected happens. For more information on American Family’s home daycare coverage, contact your American Family agent to get a home daycare insurance quote.
This summary represents only a brief description of coverages. Coverage features and limits vary by state. Some products are not available in every state. Please check with your agent and read the policy for exact details on coverages and exclusions.