There were 816,343 day cares operating in the US in 2017. They included both large child day care centers, which may include instruction or preschool learning, as well as businesses caring for two or more children in a private residence (in-home day care). Licensing requirements for these businesses vary from state-to-state and may require additional insurance as a part of that licensing. However, it’s a good idea for general liability insurance coverage to be a part of ANY day care business, regardless of size.
In-home day cares are at significant risk nationwide because of the casual nature in which these businesses often operate. Many in-home day care operators wrongly think that their homeowners coverage will protect them from the exposures should something happen to one of the children in their care. They could be in for a very costly surprise.
Running an in-home day care without additional coverage could void or non-renew a homeowners policy. It likely has an exclusion for an in-home business, requires them to carry an additional liability insurance policy for any business, or requires the purchase of endorsements. Coverage should be reviewed carefully to be sure all insurance needs are met, and there are no gaps in coverage
As an agent, if you suspect someone is keeping children other than their own for several hours a day in their private residence, please ask about their possible exposures and encourage them to purchase general liability insurance for their in-home day care.
Types of Coverage To Consider for Child Day Care Centers & In-Home Day Cares:
- General Liability – for “trip & fall” liabilities that are common with active children
- Business Property – for buildings, contents, and outdoor equipment
- Professional Liability – to cover teachers & staff
- Commercial Auto – if a commercial daycare has transport vans