Running a daycare or a home-based childcare business can be an incredibly fulfilling and rewarding occupation. You help working parents take care of their children while they are building their careers or taking some of that much needed time for themselves.
However, looking after other people’s children comes with a lot of responsibility. Parents put a lot of trust in you and in return expect superb service.
Even a small incident or scratch might give enough cause for a parent or guardian to file a claim against your business. If a lawsuit follows, you can face costly legal fees and a blow to your reputation.
To avoid serious financial trouble, you can get daycare insurance. This article will explain the purpose and coverage of daycare insurance and who needs it. You will also find some tips for saving money on insurance at the end of the article.
Daycare insurance, otherwise known as childcare insurance, is designed to cover the needs of small and at-home daycare providers. Businesses who can get coverage include:
The most typical things covered by daycare insurance are liability issues such as damage to someone’s personal belongings or someone getting injured on your property. It provides small business owners with coverage for any liability issues that may occur. Some policies also cover property damage to the premises used by your business
Most states require child care centers to be licensed. To be licensed by the Department of Health and Human Services (DHHS), childcare centers and nursery schools need to have daycare liability insurance. Only home-based daycare businesses are not required to carry liability insurance. Even if not required by law, getting coverage will not be for nothing, especially since home insurance policy probably does not cover home-based daycare businesses.
Additionally, do not forget about all the risks involved. Children are unpredictable and so are their parents. You might be faced with claims and accusations without expecting it. You should also protect your business from the risks of fire, natural disasters, and other events that could cause great financial distress.
Daycare insurance packages can vary between individual insurance companies. Furthermore, different childcare businesses have distinct needs, which is why the insurance policy needs to be tailored to the unique needs of your business. In general, this is what daycare insurance consists of:
However, depending on your business needs, you might want to omit something or get some additional coverage. Before you meet with an insurance agent or purchase coverage, analyze your business situation and evaluate the risks, so you could better assess whether the package offered to you is adequate enough.
When purchasing insurance, the entire idea is to save money in the long run, because you never know when you might be involved in a lawsuit or have to cover losses after a natural disaster. However, you can also save money on the policy itself. Consider these tips:
Being a business owner is exciting, but also stressful. However, insurance can reduce some of your worries. If you would like to discuss your options with an insurance expert, send us an email, give us a call, or just fill out the free quote form on our website.
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