Starting a home daycare can be a fun business venture. It can provide a much-needed value for dual working parents, young children and toddlers who need more social interaction, and for the daycare providers themselves who are looking for additional means of income.
However, before opening an in-home daycare, there are some things to consider. One of the most important being insurance.
Here are some things you should know about purchasing insurance for your in-home daycare.
Why is insurance important?
All home daycare centers should carry insurance, and depend on your state, you could be required by law. But why is it so important for you to be covered?
Even though you are great with kids, there are obligations that must be met in order for you to care for someone else’s child. These things are characterized as a legal duty to “act with reasonable care” while supervising children.
If a child were to get sick or injured while in your care, there is a possibility you could be sued for “breaching the duty of care” or “negligent supervision”.
While these charges may not be warranted, the law may require you to be covered by one type of liability insurance or another, to ensure the child’s medical costs are covered in case the cause does lie with you. You should check your state and local laws to find out if you are required to carry liability insurance or not. And while you may not be required to carry it, you honestly should for your protection.
Purchasing insurance for a home daycare center
Types of liability insurance:
Homeowners or renter’s insurance policies do not mean your daycare is covered unless you add it to your existing policy. However, this insurance is usually very limited and does not include child abuse coverage or off-premises accidents.
General liability insurance provides a broader range of coverage than homeowners or renter’s insurance. In fact, it usually even covers off premises excursions including field trips and child abuse coverage.
Professional Liability insurance, otherwise known as Errors and Omissions insurance, is the same type of insurance carried by doctors, lawyers, and insurance agents. It offers the most comprehensive coverage out of the 3 primary insurance types. It not only covers the basics, but it also covers negligent supervision, which the others do not.
Some things to consider: The cost of the insurance typically ranges depending on how many children you’ll have in the home.
Within the home, you should also be prepared with an emergency exit plan, a fire extinguisher, and first-aid.