If you are a home daycare provider, your type of business gets you involved with different children, which may result in risks such as lawsuits. Some of the risks associated with your type of business are abuse accusations, slips and falls, faulty toys, and so on. To prevent making these payments out of pocket, getting home daycare insurance is a good idea.
When having a home daycare, it is important to buy the best homeowners insurance, and the best is home daycare coverage. This insurance covers the cost of unforeseen events likely to affect your business finances.
This insurance comes with different insurance policies and coverage. Some states may not require daycare providers to have insurance coverage over their business, but it is advisable to get one personally to protect you and your business.
What is Home Daycare Insurance
Home daycare insurance is also referred to as childcare insurance. It provides financial protection for home daycare providers from risks and liabilities they may face.
This insurance may be a type of home business insurance for smaller home daycares, while it may be small business insurance for large home daycares. Home daycare insurance offers financial protection for events such as property damage and lawsuits that may occur while caring for children.
Does my Homeowners Insurance cover the Home Daycare Business?
While homeowners insurance covers everything in the home, home daycare is not covered under this insurance policy. Some home daycare providers may assume that their business is covered under this insurance policy, but unfortunately, it is not. Certain homeowners coverage providers offer home daycare coverage as an optional add-on to their standard policies.
This means that you will need to buy this coverage on your homeowners insurance policy. However, you can easily qualify for a home daycare insurance endorsement from your homeowners insurance company. But you can only do that if you have three, six, or more children under your care. This, however, depends on your insurer.
What Does it Cover?
Whether you buy home daycare insurance as an endorsement of your homeowners insurance policy or as a standalone business insurance policy, you need to know what is covered under your policy.
Sometimes, adding home daycare coverage as an endorsement to your homeowners policy may not fully meet the needs of your daycare business. In such cases, opting for a standalone policy might be a better choice.
The following are what home daycare covers.
General Liability Coverage
It is compulsory to get this coverage over your home daycare business. This coverage covers property damages and accidental injury expenses caused by your business to others.
General liability insurance is very important for your business if you care for children. This is because accidental injuries are likely to occur easily. Some injuries may be minor, while others may require the attention of a doctor.
Commercial Property Insurance
If you have any property or equipment used daily for your home daycare business, this coverage covers payments if ever they are damaged through a problem outlined in your policy.
Professional Liability Coverage
This covers claims of mistakes related to your home daycare business. It covers lawyer fees, settlements, and legal judgments if ever your business gets sued.
Commercial Car Insurance
If your home daycare business makes use of cars to transport children, it is advisable to get this coverage. Business vehicles are not covered under a personal car insurance policy.
Non-owned Car Liability Coverage
For home daycare businesses that use a personal or school vehicle to transport children, non-owner care liability coverage is advised. It covers damages and injuries sustained if ever there is an accident. However, this coverage is for private cars only.
Corporal Punishment Liability Coverage
In cases where staff is accused of hitting a child and a lawsuit is filed, this insurance coverage will cover legal judgments and settlement bills.
Abuse and Molestation Liability Coverage
This policy covers you and your staff if ever you get sued for molestation or abuse of a child.
What Home Daycare Insurance Does Not Cover
Just as this insurance covers quite several events, some events are not covered under this insurance. These include:
- Adult care.
- Nuisances on your property.
- The number of children.
If your home daycare business includes these, they will not be covered under your home daycare coverage.
When do you need home daycare insurance?
You need home daycare insurance when:
- Your home daycare is in your home.
- You have employees.
- Children are transported.
- You are registered or licensed.
- Your personal property is being used for business.
You should get a home daycare coverage policy for your business in these cases.