It’s important that you provide child care insurance for your daycare service to protect it from liability. Child care liability insurance protects your business from accidents that can occur with a child on your premises or under your care.
Children under your care are your responsibility even if your take them on a field trip, or if they are hurt on the slide at the playground. For this reason it’s absolutely vital that you have child care insurance to protect yourself and your assets.
Each state has different rules and regulations regarding insuring your daycare service. There are several types of insurance available for child care providers. The two most essential categories are liability and accident insurance.
You can be held liable and sued in a court if you are accused of failure to exercise reasonable care or alleged negligence. Claims against you for damages can be brought whether the injury occurred on your property, or while the child was in your care. Liability insurance usually covers most types of accidents that can occur with a child in your care.
If a court finds that you were liable and negligent for a child’s injury you may need to pay compensation. It is a good idea to seek legal advise before you buy an insurance policy. When you purchase liability coverage it usually comes in two forms of policies: Claims Made and Occurrence.
The claims made policy covers accidents that occur and are reported while your policy is active. On the other hand an occurrence insurance policy protects you from a claim even if the policy has expired. Many people feel an occurrence policy is a far superior because it may protect you even in the event of the policy being canceled.
Liability insurance can be expensive. There are techniques that can help you eliminate extra cost and lower your initial premium costs. How to help lower child care premium costs and keep your daycare center safe:
- Have training in first aid and CPR
- Keep walkways clear and toys stored on shelves
- Child proof every room where children are present
- Do not have pets around children in your care
- Do not have a swimming pool near children in your care
- Create health and safety policies for your business
- Have written policies signed by parents regarding emergency contacts and health info
- Keep children under constant supervision
- Have fire extinguishers and fire alarms in place
Some of the questions that will be asked when you apply for child care liability insurance which can affect your payments and costs are:
- What are your hours of operation?
- Is your facility is located in a mobile home, Apartment, or Condo?
- Describe your playground equipment?
- Is your yard fenced?
- Are there any pets on the premise?
- Do you have a swimming pool on the premises?
- What is the Maximum number of children you are licensed to care for at a single time:
- Is there a trampoline on the premise?
- Are there any emotionally or physically handicapped, or special care children enrolled?
- How many off premises field trips are there each year?
- Where is the destination of field trips?
- What is the mode of transportation?
- Do you provide overnight care?
Liability policies usually cover these four types of costs:
- Bodily or personal injury
- Damage to the property of others
- Legal defense costs
- Medical relief when an accident occurs
Additional areas of potential coverage:
- Damage to your property
- Incidents while transporting children.
- No fault accidents
Accident insurance is more inexpensive than liability insurance and is available to supplement your families medical insurance in case of injury from a child or employee within your business.
Liability insurance will help pay the cost of the judgment based on the limits of the policy you bought. You can get more information on liability insurance for child care by contacting your local office that licenses day care services. You can also contact your insurance agent for more information about liability and accident insurance coverage.
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