Day Care Insurance: Protect Your Business and Reputation

Owning and operating a daycare comes with its fair share of risks. Whether you’re taking care of a few children or running a large facility, the safety of the children in your care is your top priority. However, accidents can happen—children can get hurt, property can be damaged, and unexpected incidents may occur, leaving your business vulnerable to lawsuits or financial loss.

This is where daycare insurance comes in. It’s crucial to have the right insurance coverage to protect your daycare business from these risks, ensuring both your peace of mind and the continued success of your business.

Why Daycare Insurance is Essential

In a daycare setting, you’re responsible not only for the well-being of the children but also for the safety of the staff and the protection of your property. The following are just some of the risks your daycare faces:

1. Accidents and Injuries – Children can fall, trip, or get hurt while playing, which could lead to a claim.

2. Property Damage – Accidents happen, and damage to your daycare’s property, whether it’s from an electrical fire, plumbing issue, or vandalism, can be costly.

3. Negligence Claims – If a child is injured and a parent believes the injury could have been prevented with better care, your daycare may face a negligence lawsuit.

Daycare insurance covers all these risks and more, giving you the protection you need to keep your business running smoothly without the threat of financial ruin.

As a daycare owner, you need to ensure you have the right types of coverage to protect yourself, your business, and the children you care for. Below are the five most important types of daycare insurance to consider:

1. General Liability Insurance

General Liability Insurance is one of the most important policies for any daycare. It covers third-party claims for bodily injury, property damage, and personal injury. For example, if a child trips over a toy and gets hurt, general liability insurance would cover the medical expenses, legal fees, and any settlements resulting from the injury.

The average cost of a liability claim can easily exceed $30,000—a substantial amount that could cripple a small daycare business without the proper insurance.

2. Professional Liability Insurance

As a daycare provider, you are trusted with the safety and well-being of children. Professional Liability Insurance, also known as Errors and Omissions Insurance, protects your daycare against claims of negligence or failure to provide appropriate care.

If a parent sues your daycare for negligence or for not following safety protocols, this type of insurance will cover your legal defense costs and any settlements or judgments. The cost of defending against a negligence claim can reach $50,000 or more, making professional liability insurance a must-have for daycare providers.

3. Property Insurance

Your daycare facility’s property, including the building, equipment, furniture, and supplies, is at risk from damage or loss due to fire, theft, vandalism, or other unforeseen events. Property Insurance covers the cost of repairing or replacing damaged property.

The average fire damage claim for commercial properties is about $35,000, and without property insurance, your daycare could be forced to close temporarily while repairs are made, resulting in lost income and additional financial strain.

4. Workers’ Compensation Insurance

If your daycare has employees, you are likely required by law to carry Workers’ Compensation Insurance. This coverage protects your employees in case they are injured while on the job, covering medical expenses, lost wages, and rehabilitation costs.

For instance, if a staff member gets injured while handling children or performing their duties, workers’ compensation insurance ensures they receive the care they need and that your daycare avoids costly lawsuits.

5. Business Interruption Insurance

Accidents, natural disasters, and other emergencies can force your daycare to temporarily shut down, resulting in lost income. Business Interruption Insurance helps cover lost revenue during this downtime and can also assist with paying ongoing expenses like rent and utilities.

The average loss of income during a business interruption can range from $2,000 to $3,000 per day for small businesses. This type of insurance helps keep your cash flow stable during the most difficult times.

How Toby Hansen Agency Can Help

At Toby Hansen Agency, we understand the unique challenges daycare owners face. With over 30 years of experience, we work with nearly 100 insurance carriers to ensure you get the best coverage at the most affordable rates.

We’ll guide you through the process of selecting the right policies for your daycare and offer tailored solutions that meet your specific needs. From general liability to workers’ compensation, we’ve got you covered.

Request Your Free Quote Today

Don’t leave your daycare business unprotected. The right insurance can make all the difference in ensuring that you can continue providing quality care without worrying about unexpected financial hardships.

Fill out the form below to receive a free, no-obligation quote and find the best daycare insurance for your business.