Working with children might be your life’s calling and when you love being around kids, it may not even feel like work. Still, the fact remains that operating a home daycare is work and you need to treat it like a business—and that means getting insurance for your business. In this case, home daycare insurance.
If you run a small daycare out of your house or are considering running one, your standard home insurance policy may not cut it. You’ll need home daycare insurance to make sure you have adequate coverage.
To protect yourself, your business, and the precious little people who are your clients, you must have an insurance policy that will meet the needs of your home daycare business. This is why you need additional home daycare insurance: It’ll protect you from potential lawsuits or cover unforeseen damages to your property.
At-home child care is offered as an endorsement (also known as a rider) or an add-on to your home insurance policy, and for an entrepreneur, there’s no greater relief than knowing your business is protected from lawsuits.
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Liability insurance for at-home daycare coverage typically includes liability coverage, property insurance, or some combination of the two. However, there are many other daycare coverage options available that largely depend on your business needs.
The question then becomes: Which home daycare coverage is best for you?
The first thing you need to determine is the scale of your daycare (i.e. how many kids can you legally care for under your state’s law?)
For at-home daycares with a handful of children, you have the option of a home insurance rider; meaning you can extend your home insurance to cover your business—but, only if you qualify. One such qualification is that the children remain on the property while in your care. This means no walks to the park.
For larger daycares, you aren’t eligible for an endorsement, so you’ll need to assess the unique needs of your daycare (e.g. Do you have employees? Do you use vehicle transportation for the kids? etc.) and create a business insurance policy that’ll protect you from all possible lawsuits.
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The short answer is yes. You can add a rider or endorsement to your home insurance, but only if you meet the insurance provider’s eligibility requirements. An endorsement extends your homeowner’s insurance policy (property and liability coverage) to your at-home childcare business. Usually, there is a child cap of three children allowed when you add an endorsement to your home insurance policy.
For entrepreneurs with up to three children in their care, this would be a suitable option. But, only if the children remain on the premises.
If you care for more than three children, take the children on trips outside the house or transport the children via vehicle, then adding a childcare endorsement is not an option.
Endorsements don’t cover:
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Deciding on the right at-home daycare insurance may seem like a challenge, but it’s essential if you want to protect yourself from potential lawsuits and your little clients in the event of an accident. The best place to start is by identifying the scale of your operation (small or large) and then go from there.
For small businesses, you have the option of adding daycare coverage as a home insurance endorsement.
Larger daycares may want to add things like worker’s compensation and accident insurance to pay for medical expenses associated with on-site injuries. Larger daycares also need to create a business insurance policy that fits their needs while providing them with complete protection from lawsuits.
Get a free quote for home daycare coverage now. We’ve curated a list of the best providers of this niche insurance and will match you with a company that will give you the best coverage for your specific needs at the best possible price.
Your daycare insurance coverage depends on the scale of your operations and unique needs. For smaller businesses, you may only want an endorsement, while larger daycares may need many add-ons.
Home endorsement is only available for at-home daycare providers, while any other coverage you add to your policy is considered an add-on.
Jessica Fox Jessica Fox has been a freelance writer for five years, with a specialty in health, wellness, and insurance. During this time, she’s written for some of the biggest B2B and B2C brands from around the world. Jessica is also the mother of two young daughters and loves coffee, writing, and working out.
