Commercial Child Care Insurance Basics
If you operate a commercial child care business, insurance is a must. Not only does it cover damages to your building from perils and accidents like fire or a burst pipe, but commercial child care insurance also covers liability issues that are more likely to occur in the childcare or daycare business.
What Types of Commercial Child Care Insurance Do I Need?
Each state differs when it comes to business insurance requirements, so the first thing you will want to do is check with your state's Board of Health to find out what insurance coverage you need to operate a daycare center. As a general rule, you will want to include:
- General liability. This is a must. General liability insurance covers medical bills and pain and suffering for anyone who is hurt while on your premises. It also covers damage to others' property that may occur on your property.
- Property damage. This will cover the actual structure itself. Similar to homeowners' insurance, it pays for damage that results from specific perils, such as falling objects, fire, theft, or vandalism. You will also need to insure the contents of your daycare.
- Loss of income. In the event an accident or investigation causes you to have to close your facility for a certain period of time, this covers the money you will have lost from the inability to care for children in your facility.
- Workers compensation. Usually required by law, this will cover the lost wages and medical bills of employees who are hurt on the job.
Additional commercial child care insurance you should strongly consider includes:
- Abuse and molestation coverage. This is a smart move for anyone who works in the childcare industry. Even if an accusation is unfounded, defense costs can quickly add up, putting you in financial stress.
- Commercial auto. If you provide transportation, you will need commercial auto coverage for your vehicles.
How Much Child Care Business Insurance Do I Need?
One lawsuit or judgment against you can devastate you financially and cause you to close your business. That's why it's important to have the right amount of coverage.
How much you need, however, will depend on a variety of factors, such as the number of children in your facility and whether or not you provide transportation. As a general rule, a good starting point is $1,000,000.
Where Can I Find Commercial Child Care Insurance?
While most insurance companies can provide you with basic commercial business insurance, purchasing your child care business insurance from a company that specializes in child care coverage is your best bet. They are accustomed to dealing with the emotion that frequently accompanies liability cases involving children.
How Can I Get Affordable Child Care Business Insurance?
The more coverage you get, the more liability and situations you're covered from, but the more you pay as well. Instead of skimping on insurance, look for different ways to save money on your rates. Shopping around and comparing quotes is the best way to find the lowest prices.
Netquote.com is a great way to save money on your commercial child care insurance. You can get multiple quotes for free, then compare them to find out which is the best deal.
See how much you could save today on your insurance. Get your free business insurance quotes today!