Preschool, Child / Day Care Insurance

Types

The best type of daycare liability insurance depends on where you will run the daycare. If you will rent or buy a commercial space in which to run the daycare, you will need a daycare business liability policy. If you have run another type of business in the past and already have a business policy, you can purchase an endorsement, an addition or change to your current policy, to cover the daycare business in particular. You will have to compare costs and coverages to determine which proves the best option for you. If you have never run another business in the facility, you will likely want to purchase a daycare liability policy rather than a general business policy that may not fully meet your needs.

Coverage

The best daycare center liability coverage provides the most insurance you can afford for the lowest possible cost. Some jurisdictions require a minimum of coverage, which you can find out about by contacting the department that provides daycare licensing in your area. Other jurisdictions do not specify a minimum amount of coverage, and you will have to estimate the amount you need with the help of an insurance agent or lawyer. Covered events may vary from policy to policy, but most include personal injury to the children in your care and property damage but exclude claims related to vehicles and intentional abuse or neglect of a child.

Cost

Typically, the best policy offers premiums that fit well within your business budget. However, premiums for daycare liability insurance vary based on the insurance company and the amount of coverage you seek. In general, the higher the coverage limit you choose, the more you can expect to pay for insurance. Insurance premiums may also rise in proportion to the size of the facility and the number of children you enroll. Additionally, choosing adds-ons such as daycare vehicle insurance may translate into higher premiums. Avoid making low cost your primary goal, however, because inadequate coverage can lead to financial ruin in the event of costly claims.

Extra Expense Insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.