Article provided by: Day Care Insurance Services, Inc.
Do you need home daycare liability insurance? If you do, contact DCI DC Insurance Services, Inc. We have been providing childcare insurance since 1968, and you can trust us to ensure you have the coverage necessary.
Do I Need Home Daycare Liability Insurance?
Yes, you do need home daycare liability insurance for your business. You are operating a business, and your homeowner’s policy does not provide coverage. Some companies will add this specialized insurance, but it is limited and will exclude child abuse coverage.
Caring for children in your home for a fee means you are in business. You may not need a business license, but you are exposed to liability. For you to protect your assets and your home, you will need to follow some basic rules:
- Purchase Insurance
- Follow all licensing requirements required by the state, county, and federal law.
- Have a good safety program in place, and make sure you are implementing it correctly.
You are required by law to provide “reasonable care” while caring for children. If you fail to do so, and a child is injured or becomes ill, you can be sued for “acting negligently.”
How Will Liability Insurance Protect Me?
If you are sued because a child has been injured or becomes ill in your care, the claim is covered by your insurance policy. The insurance company will pay legal defense costs, and if you are found at fault, it will pay the judgment up to the policy limit. It is crucial to have the right type of insurance policy because lawsuits are expensive, and you will need an attorney to defend you. Not all childcare policies are the same, and it is crucial to make sure you are getting the best coverage for a fair price.
Some states require you to have liability insurance, and if so, you will need to make sure you get the right amount of liability insurance. A deductible is what you pay in addition to the policy premium for all claims.
You should carry professional liability/negligent supervision and general liability for your in-home daycare operations for both on and off the premises. You should look for the following items in a childcare policy:
- Accidental Medical Insurance
- Alienation of Affection
- Child Abuse
- Contractual Liability
- Defense Coverage
- Field Trips/Off Premised Activities
- Incidental Malpractice
- Non-Owned Auto Liability
- Personal Injury
- Products Liability
- Transportation Coverage
Exclusions are things not covered under your policy. All policies have conditions and exclusions. READ your policy. If your policy excludes coverage for all dogs on the premises, bodies of water, swimming pools, overnight care, HIV/AIDS, or infectious diseases, you may want to look for a new policy. Home daycare liability insurance is a must for any in-home facility. Make sure you understand what type of policy you are getting and what the exclusions are.
How Do I Choose the Right Policy?
You will want to choose a company that specializes in childcare insurance. Our company does just that, and we provide workshops to educate childcare providers so they can have a better understanding of what difficulties they may face. Contact DCI DC Insurance Services, Inc., and let us help you today.