Many people do not realize the potential dangers involved in a childcare facility. Children can suffer due to negligence or accidental oversights. In 2013 several children were injured and some died at an unlicensed childcare center. This was due to negligence and the owners face criminal charges now.
Of course, accidents happen. But, this is why it is so important you invest in daycare insurance. Daycare insurance can help protect you and the children under your care.
Who Is Daycare Insurance For?
Daycare insurance is necessary for almost every type of childcare business. This includes solitary caregivers such as those who may register as a “nanny”. This insurance differs somewhat from the insurance provided to physical daycare.
Daycare and parochial schools for children should purchase daycare insurance. The purpose of this insurance differs somewhat based on the type of daycare facilities. But, ultimately this insurance is meant to protect your business and maintain a safe environment.
Who needs insurance depends on the type of business you operate. There are three common facilities that need daycare insurance. Some of the things covered under this insurance may seem obvious. They may be aspects you are familiar with that are covered under almost all types of insurance for businesses.
These include accident insurance to protect you if someone gets injured on your property. But, when you factor in a bunch of toddlers running around, this takes on a new meaning. What seemed like an improbable accident resulting from an adult sliding on ice, becomes much more likely.
A home daycare service is an in-home service for children. This can include a service assistant to a parent/guardian. Or, someone who stays home with the children while parents are at work. These caretakers are licensed and certified individuals who usually have some formal training.
Home daycare providers should have daycare insurance. It may not need to be as extensive as a commercial facility. This depends, based on the agreement between you and the homeowner.
If you are a daycare operating out of your own home then you will likely need more coverage. You will likely either need or would benefit greatly from various types of coverage. This coverage can apply to your property and the articles you possess which may get broken.
A commercial facility is very similar in practice to an in-house or home daycare center. They both provide care to children and usually have an educational bent. They provide care for children ranging from a few months old to just before entering school.
The primary distinction between an in-house or home daycare center and a commercial facility is the location. The location is typically a commercial building without any permanent or temporary residents. This means it is not a place where people live as their home and operate a business. Rather, it is only for business purposes.
Daycares Operating in Schools or Churches
Daycare centers also operate out of churches and other non-profit buildings. This includes schools as well. These systems are usually regulated under the full-day and part-day program regulations. This includes schools and church-run daycare centers.
A full-day facility must meet the regulatory requirements of the local territory in which they reside. These requirements may include periodic inspections by a government official. They also check the nutritional content of the food provided to children and ensure it is appropriate.
Excluding specific provinces such as British Columbia, part-day programs are also regulated. This does not mean there are no standards for other provinces. But, there are fewer restrictions in certain provinces.
What Does Daycare Insurance Cover?
Daycare insurance can cover almost any aspect of your facility and the people there. Or, even those who do not operate within the physical confines of the building. It can also cover distance workers.
This is because you may need to ensure protection against potential harm or lawsuits. These events could occur from a distance. This could include an injury your employee experiences while working for you at home. Or, potential lawsuits from parents or guardians who may feel dissatisfied.
But, primarily, daycare insurance ensures the business against potential lawsuits and harm. You are caring for very young children who are accident-prone and unpredictable. It's important to be prepared for almost anything with children.
And, parents and guardians choose daycare for many reasons you may not be aware of. This can also impact the child’s experience and behaviour at school. Again, you want to be prepared for almost anything.
Daycare insurance includes things other than protection for property and lawsuits. It also helps to safeguard your investments. Proper daycare insurance will protect your property as well as your assets.
Furniture - Tables, Chairs, Stools
You never know what may happen at your workplace. You probably invested a significant amount of money in the furniture and decor of your business. The furniture business alone is valued at 5 billion of the country’s GDP. This says something significant about the value of your furniture in your business.
The furniture should be insured against the potential damage from the children and their parents. It should also be protected against flood damage and other weather-inflicted harm.
Portable cribs are an important part of your daycare center. Especially if you host your daycare yourself. If you operate as an in-house caretaker, a portable crib is a good idea. They are easily transported from one place to another.
They are necessary for nap times and other rest periods. Especially if you are caring for young children under 4 years old. It’s a great idea to ensure your investment against damage and potential storm damage.
You might be wondering why you need cots and guest beds in your daycare? Some daycares, especially full-day daycares need beds. Other part-day daycares may not need these so long as they provide a small space for napping.
But, remember that you are caring for children. Beds are useful to provide a comfortable space for them to sleep. And, they are safer than having the children on the floor.
Computers are just a part of our daily lives now. It is extremely hard to operate a business without a computer. This is because a computer allows business owners to communicate easily with their clients and their employees.
They also make bookkeeping and record-keeping more straightforward. Insuring your computer is a good idea to protect one of the most expensive and necessary tools for your business.
Changing tables are important for changing children’s diapers and other clean up. When children are still learning to use the restroom, it’s a good idea to have a place to clean up.
Changing tables are good for keeping the children in a sanitary environment. Just make sure you wipe it down when you’re done.
Shelves and Storage Units
Shelving units help keep the daycare clean and tidy as well as keep the toys off of the dirty floor. Shelving units can be costly if they are ever damaged.
Even plastic units can be damaged during a flooding episode. Especially if you are unable to perform cleanup right away. Water creates mould which is very bad for health.
Injuries to the Children
You are working with children who are learning to walk still, at times. They are accident-prone. But, not all injuries are harmless.
And, if a parent or guardian feels it is right, they can sue for injuries to their child. This can be very expensive and if you are uninsured it might cost you your business. It is a very good idea to both prevent injuries while also protecting against potential lawsuits.
Accidents happen no matter how careful you are.
Types of Daycare Insurance
There are many types of daycare insurance plans available based on the three primary types. These insurance plans are typically broken down into at-home, commercial, and school/church. We have already gone over these three types.
But, each of these types should have different levels of insurance. Generally, all daycare insurance should protect against potential lawsuits for injuries. But, your insurance plan should also include liability insurance and income loss.
Employment Practices Liability Insurance (EPL)
This insurance protects the employer against potential lawsuits by employees. This means if your employee tries to sue you due to a claim of mistreatment, legal fees are covered. Employees can sue for a variety of reasons.
They can sue based on claims of racial or sexual discrimination. They can sue based on claims of experiencing such behaviour. In Canada, employees are protected against mistreatment from employers. Even if your actions were unintentional, they may still have grounds to sue.
Commercial General Liability
General liability insurance may be the most necessary for a daycare center. This insurance is relatively vague, but this is necessary for the type of accidents that can occur.
General liability insurance protects the business from the potential hazards that can occur. This can be falling on your property or an injury from playing with toys. This insurance is essential for anyone hosting a daycare center.
Business Property Insurance
This type of insurance is not just for daycare centers. As the name implies, it includes almost anything that can be defined as a business property. This can include supermarkets and malls.
However, for daycares, this insurance is important. This insurance can cover things such as damage to your buildings from weather or natural disasters. It adds a level of security to your investments and the ability to make repairs.
Business Interruption Coverage
This insurance may not have seemed so important up until recently. Covid-19 showed the world just how costly an unforeseen crisis can be. Business interruption insurance protects the business from events such as these.
With this insurance, if you are forced to shut down for some reason, your revenue may be protected. This depends on the plan and what you need most, but generally, this is true.
Boiler & Machinery Insurance/Equipment Breakdown Insurance
This is insurance that can apply to businesses or private individuals. However, private plans are usually not so involved as a business plan.
This insurance helps protect your business’ investment in heavy-duty machinery and its maintenance. Maintenance usually occurs several times per year and is essential for the continual operation of the units. Insurance such as this can help you pay for this and help replace a damaged or broken unit.
Commercial Auto Insurance
Commercial auto insurance helps protect your employees when they are on the road for your business. And, it helps protect you in the case of an unfortunate accident.
If you run a child care and daycare center, you will probably drive children around in your vehicles. Insurance helps to protect you in the event of an accident and an injury occurs.
This insurance probably seems pretty obvious. But, it is very essential to any business. As a business, you have valuable items in your possession. This can attract thieves and burglars to your business.
In the event of a theft or break-in, this insurance helps to protect your business. Usually, you can get refunded for stolen items or get these items replaced.
What Is Not Covered by Daycare Insurance?
Daycare insurance usually refers to the direct operation and execution of the daycare itself. This means that if someone is hurt on your property or a child gets injured while playing, you are protected.
Daycare insurance recognizes that daycares are accident-prone places with accident-prone children. If you are not insured, you could end up paying a fortune in lawsuits.
But, daycare insurance does not usually include property insurance or similar property damage. This means you might need to invest more to protect your property and your investments.
What to Look for in a Company that Offers Daycare Insurance
A company that provides daycare insurance should also provide insurance for other things. Since it is wise to invest your money and protect this investment, you want a place that can help.
A company that provides extensive insurance policies can help you ensure all of your business. They should recognize that your daycare business is more than just a childcare facility. You have employees who need protection. You have a property that is at risk from damages.
A good daycare provider should also provide these insurance needs.
Typical Costs of Daycare Insurance
This depends on several aspects of your business. Do you have an in-house or at-home care center? You will probably need to invest around $500-$1,400 for insurance.
If, however, you have a commercial facility, the cost is higher. This can be as much as $3,500. This also is just the typical price annually for general liability. This is the bare minimum coverage you should have as a daycare.
How to Save Money on Daycare Insurance
Bundling your insurance plans is one of the best ways to save money on your daycare insurance. Bundling your insurance means purchasing a package from an insurance provider.
If you choose them for almost all of your coverage needs, they may be able to give you better prices.
Running a daycare is a lot of work. It requires attention to detail and an ability to be patient with a large group of children. Daycare insurance can help you have peace of mind about your business.
This allows you to focus on the children under your care. Without having to constantly worry about the potential for disaster!