If you have any type of business, you will need to have insurance to cover yourself and your business from liability. Running an in-home child care business is no different and the Department of Health and Human Services do require some insurance for you to obtain a license to run this business. There are many insurers who offer daycare insurance packages which include a range of different coverage types. It is important to know what these coverage types are and why they need to be part of the daycare insurance policy you get.
General Liability Insurance
When you work with children, accidental injuries are going to happen. The problem is that the parents of the children do have the right to sue you for these injuries whether you are negligent or not. This is why you need to have general liability insurance. In fact, the DHHS will generally require at least general liability insurance before you are able to get a license.
General liability insurance will cover third-party claims for property damage and bodily injury which occurred on your premises. It is important to note that liability claims are the greatest risk to child care providers and vital for your business. A mistake that many in-home child care business owners make is thinking that their homeowner’s insurance will cover this, but there may be a business exclusion clause in the policy that prevents this.
As homeowner’s insurance will often have a business exclusion clause, you will need to get additional property insurance. This insurance will also be known as commercial property insurance and it will cover all the assets that your business has. This could be the vehicle that you use for your business as well as the items in your home which are only used for the business.
When you look at this coverage, you will need to provide a listing of all the assets such as the building, equipment, and supplies that are used for the business. You will also need to determine if the coverage will be for the current value or the replacement value. If your business is just starting out, you might want to consider the current value.
This is due to the fact that a policy at the current value will generally have lower premiums. The replacement cost will ensure that you can cover the costs of replacing the assets with new property, but you will have to pay a higher premium. This might not be an option when you have limited cash flow at the start of your business.
A Business Owners’ Policy
When it comes to a business owners’ policy, it is important to note that this will be a combination of 2 other insurance policies. This policy will cover daycare liability insurance and property insurance in one bundled package. This can be ideal for your business because it will result in a lower overall cost for the insurance.
This policy will generally be purchased separately to the other types of insurance that your business requires. The lower cost of the policy will make it ideal for new businesses, but if you can get a daycare insurance package with these 2 types of insurance included, it might not be the best solution. You need to consider all of your options before you commit to one.
Professional Liability Insurance
A lot of people do not consider professional liability insurance for an in-home child care business. This is due to the fact that most people assume this is for professional occupations such as consultants only. The truth is that you need to have this for your business as it covers you for any loss or damage which comes from negligence by you or your staff while performing your work.
It is important to note that this is different to general liability and personal liability insurance. This means that if you get a business owners’ policy, the insurance will not be included. You will have to purchase this separately and ensure that you actually get it. Negligence claims against your business could force you to close your doors because of the costs.
Abuse And Molestation Liability
As you are going to be working with children, you need to protect yourself against the largest threat to your business. This will be claims of abuse and molestation. This could be against one of your staff members or against yourself and it will be covered by this type of insurance.
It is important to note that this type of insurance from Procom Insurance Company will often be included in professional liability insurance. However, you should check this and not assume that to be the case. Your child care business must have this insurance because you never know when a claim could be made against you.
Commercial Vehicle Insurance
While your child care business is within your home, that does not mean that you will not have a vehicle dedicated to the business. This could be a car or van which is used to transport the children or that your staff use for business purposes. If you have any vehicles that are used for any business activities, you need to cover them with commercial vehicle insurance.
If your vehicles are in an accident, this insurance will cover the cost of repairs and any lawsuits. The insurance will also cover the costs when your vehicle is damaged by an uninsured driver. Your personal car insurance will generally not cover any vehicles used for business purposes and you need to consider this. Fortunately, this type of car insurance will work in a similar manner to personal auto insurance which makes it much easier to understand.
There are many different types of insurance that an in-home child care business will need to look at. Many of these insurance policies will be bundled together in a daycare insurance policy, but you might have to purchase them individually. When you do get these insurance policies, you need to read the terms and ensure that they are bespoke for your business.
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