The short answer: Daycare insurance protects childcare centers, preschools, and home daycares if a child gets hurt, a parent sues, or something happens to your building or your staff.
You care for other people’s kids every day. If something goes wrong, the right insurance pays the bills so you do not have to.
Key Takeaways
- Daycare insurance is a few different coverages working together.
- Each one pays for a different kind of problem.
- A regular homeowners policy usually does not cover a home daycare.
- Many insurance companies will not insure daycares, so it helps to work with an agent who knows where to look.
What Does Daycare Insurance Cover?
General Liability for Daycares
Covers accidents that hurt someone or damage their things.
Examples:
- A child trips on a rug and needs stitches
- A parent slips on your icy sidewalk at pickup
- A child knocks a parent’s phone off the counter and breaks it
It can pay for medical bills, lawyers, and court costs.
Abuse and Molestation Coverage for Daycares
Covers you if someone claims a child was abused while in your care.
Examples:
- A parent accuses a staff member of hurting their child
- A parent says an older child harmed a younger one and nobody stepped in
Even a false claim can cost thousands to fight.
Many policies leave this out unless you add it.
Always ask if you have it.
Professional Liability for Childcare Providers
Covers mistakes in how you care for the kids.
General liability covers accidents. Professional liability covers claims that you did your job wrong.
Examples:
- A child with a peanut allergy is given the wrong snack
- A staff member gives a child the wrong medicine
- A child is sent home with someone who was not allowed to pick them up
- A parent says their child was not watched closely enough
Daycare Property Insurance
Covers your building and the things inside it.
Examples:
- A fire damages your classroom
- A storm ruins your roof
- Someone breaks in and steals your laptop and tablets
- A burst pipe soaks your cribs, toys, and supplies
It can also help replace lost income if you have to close while repairs are made.
Many daycares buy property and general liability together in one package, which usually saves money.
Workers’ Comp for Daycare Staff
Covers your employees if they get hurt on the job.
Examples:
- A teacher hurts her back lifting a toddler
- A staff member trips over a toy and breaks a wrist
- An employee catches a bad illness at work and misses weeks
It pays their medical bills and part of their lost paycheck.
Most states require it once you have employees.
Commercial Auto for Daycares That Transport Children
Covers vehicles you use for the daycare.
Examples:
- An accident on the way to a field trip
- A fender bender while picking kids up from school
Your personal car insurance may not cover driving kids for your business.
Other Coverages to Ask About
- Employee claims: if a worker says they were fired unfairly or treated wrong
- Umbrella: extra protection on top of your other policies for very large claims
- Cyber: if parent, payment, or medical information is stolen from your computer
Does Homeowners Insurance Cover a Home Daycare?
Your homeowners policy usually will not cover it.
Most home policies leave out business activity. A daycare is a business.
If a child gets hurt in your living room, your homeowners company may deny the claim.
Pro Tip: Ask your agent to confirm in writing how your daycare is covered.
A Simple Example
A home daycare watches 8 kids.
A 4 year old falls off the swing set and breaks an arm.
The parents want the medical bills paid. Later, they say nobody was watching.
Without daycare insurance: The homeowners policy says no. The owner pays the medical bills and the lawyer.
With daycare insurance: General liability pays for the injury. Professional liability helps fight the claim that nobody was watching.
One claim can cost more than years of insurance.
Daycare Insurance FAQs
How much does daycare insurance cost?
It depends on your daycare. The number of kids, number of staff, your building, and whether you drive children all change the price. A small home daycare usually pays much less than a large childcare center.
Is daycare insurance required?
Many states require certain coverage to get or keep a daycare license. Workers’ comp is required in most states once you hire employees. Even when it is not required, one claim can cost more than you can afford.
Do I need insurance for a home daycare?
Yes. Most homeowners policies do not cover a business run out of your home, and a home daycare is a business.
Can a new daycare get insurance?
Yes. Many insurance companies will insure a new daycare, especially if you are licensed and have safety rules in place.
Where can I get daycare insurance?
Many insurance companies do not insure daycares, so work with an agent who has access to companies that do. Nelson Insurance Agency offers daycare and childcare insurance for centers, preschools, and home daycares in 42 states.
The Bottom Line
Daycare insurance is not one policy. It is a few coverages that each protect you from a different problem:
- General liability for accidents
- Abuse and molestation for abuse claims
- Professional liability for mistakes in care
- Property for your building and things
- Workers’ comp for staff injuries
- Commercial auto if you drive kids
Make sure you have the pieces that fit your daycare. Not sure what you need? See our daycare insurance coverage options.
