Daycare Liability Insurance: Protect Your Valued Business

Why Daycare Liability Insurance Is Not an Option

Daycare businesses, whether large or small, are not immune to accidents and lawsuits. In fact, a study by the National Association of Child Care Resource and Referral Agencies (NACCRRA) found that 38% of daycares have been sued at least once. The average cost of a daycare lawsuit is $50,000, and some cases can result in settlements that exceed $1 million.

Without adequate daycare liability insurance, you could be personally liable for these costs, which could result in the closure of your business.

What Does Daycare Liability Insurance Cover?

Daycare liability insurance provides coverage for a wide range of risks, including:

• Bodily injury to children
• Property damage
• Medical expenses
• Legal defense costs
• False accusations

Bodily Injury: This is the most common type of claim against daycares. It can include injuries such as cuts, bruises, broken bones, and even death.

Property Damage: This coverage pays for damage to your daycare's property, such as furniture, toys, and equipment.

Medical Expenses: This coverage reimburses you for medical expenses incurred by a child who is injured while in your care.

Legal Defense Costs: This coverage pays for the costs of defending yourself against a lawsuit, even if you are ultimately found not liable.

False Accusations: This coverage protects you against false accusations of abuse or neglect.

How Much Daycare Liability Insurance Do I Need?

The amount of daycare liability insurance you need will vary depending on the size and type of your operation. However, most experts recommend that daycares carry at least $1 million in coverage.

How to Choose a Daycare Liability Insurance Policy

When choosing a daycare liability insurance policy, it is important to consider the following factors:

• The coverage limits
• The deductible
• The premiums
• The reputation of the insurance company

Coverage Limits: Make sure that the coverage limits are sufficient to protect your business from financial ruin.

Deductible: The deductible is the amount you will pay out of pocket before your insurance coverage kicks in. Choose a deductible that you can afford to pay.

Premiums: The premiums are the cost of your insurance policy. Compare quotes from multiple insurance companies to find the best deal.

Reputation of the Insurance Company: Make sure that the insurance company you choose has a good reputation for paying claims quickly and fairly.

Tips for Reducing Your Daycare Liability

In addition to carrying daycare liability insurance, there are a number of things you can do to reduce your risk of being sued. These include:

• Hiring qualified and experienced staff
• Providing a safe and secure environment
• Maintaining proper documentation
• Communicating with parents regularly
• Having a clear and concise liability waiver

Conclusion

Daycare liability insurance is an essential protection for any daycare business. By carrying adequate coverage, you can protect yourself from financial ruin in the event of a lawsuit.

Additional Resources

• National Association of Child Care Resource and Referral Agencies
• Child Care Aware of America

Disclaimer: This article is for informational purposes only and should not be construed as legal advice. Please consult with an attorney to discuss your specific legal needs.