Daycare Insurance in California

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By: Vernon Williams

Owner of The BFIS

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Home daycare providers are always at risk of their business being hurt by common accidents such as slips and falls, ingestion of toxic substances, abuse accusations, and faulty play equipment, causing injuries. These incidents could cost you a lot of money in damages like lawsuits and penalties or lose your clients, which would damage your reputation.


Fortunately, there is home daycare insurance to reduce these risks. This article will give you more information on what it is, the types of coverage available, and how it can help your business. Read on to find out everything you need to know about it.

What is Daycare Insurance in California? Do You Need It?


Daycare or childcare insurance is a policy that covers your liability if anything happens to those under your care. In other words, it protects caregivers from the risks your daycare business may face.


In most cases, childcare liability insurance is an addition to your homeowner’s policy. This means that the protection for accidents and injuries caused by your children will be extended to cover them. However, this isn't always done automatically, so you should double-check with your insurer that your homeowner's policy includes this coverage.


So, do you need insurance to protect your business and the children in your care? Absolutely! Without it, you could get sued and be forced to use your personal savings or even put your home up as collateral. Obviously, that's not something anyone would want.


It's essential that you get insurance for your home daycare, especially if you care for six or fewer children. If you have more than six kids, though, you should go for a commercial policy since it covers more liabilities.

Types of Home Daycare Insurance In California


If you're in the market for home childcare insurance, there are three main types of coverage to choose from. They are:


  • Liability insurance
  • Homeowner’s insurance
  • Commercial Auto insurance
  • Commercial property insurance

General Liability Insurance


General liability insurance, which is commonly known as "slip and fall" insurance in the daycare business, protects your company if anyone gets hurt within its boundaries. This coverage includes the following:


  • Property Damage: A daycare needs specific equipment and supplies to function smoothly, such as furniture, computer, water, and toys. Unfortunately for business owners, though, this type of property is not resistant to damage from things like natural disasters or accidents. This is where home daycare liability insurance comes in handy by covering the expenses associated with repairing or replacing damaged property.
  • Physical Injury. If a child you are caring for is injured while playing, you could be held liable, regardless of whether you were supervising the activity or if the equipment was safe. But with home daycare liability insurance, you will not have to pay any out-of-pocket costs.
  • Personal Injury. You always run the risk of reputational damage as a home daycare operator, whether it be from dissatisfied customers, underhanded competitors, or social media users. The consequences can include client loss, lawsuits, hiring and retention difficulties, and more. Thankfully though, general liability insurance protects your business from such unforeseen personal injury setbacks.

Workers' Compensation


Your employees may also be vulnerable to injury and illness, which is why it’s important to carry workers’ compensation insurance. This coverage is required by law in California, and it provides employees with a safety net should they ever need medical treatment or rehabilitation.


Workers' compensation insurance steps in to help with medical costs and missed wages when an employee is hurt on the job. It can cover:


  • Medical bills
  • Lost earnings
  • Employer liability
  • Rehabilitation services

Commercial Property Insurance


If you run a larger daycare business, you should also invest in commercial property insurance. This coverage safeguards your assets from a variety of causes, such as fire, vandalism, and theft. It also covers the equipment you use to run your business and can provide financial protection if it’s damaged or destroyed. This type of insurance can help with the costs associated with repairing or replacing damaged property.


Commercial Property insurance typically covers:


  • Damaged equipment and inventory
  • Operating expenses
  • Lost income

Commercial Auto Insurance


If you have vehicles that are used for business operations, you should invest in commercial auto insurance. This coverage will protect your fleet from a variety of risks and offer financial protection if there’s an accident. It can also provide you with legal defense and coverage for medical bills, damage to another person’s property, and more. As a general rule, your personal auto insurance policy won't cover damage to your work van if you back into something and tear off a side mirror. That’s why commercial auto insurance is so important; it will help reduce the financial strain if something like this happens.


Commercial auto insurance can cover:


  • Collision repairs
  • Medical bills
  • Rental reimbursement
  • Liability coverage

How Much Does Daycare Insurance Cost?


Your daycare insurance quote will differ based on the inherent risks of your business, such as:


  • The type of care you provide: Are you a preschool, an after-school program, or just a general daycare?
  • The size of your daycare: Do you have multiple locations or are you a small, family-run business?
  • The location of your daycare center: Is your daycare in an area prone to natural disasters or other risks?
  • Your payroll and employee job types: Do you have a lot of employees? Are they working in hazardous roles?
  • The vehicle you drive: What kind of vehicles do you use for daycare operations?


Your insurance provider will also take into account things like the number of employees, the size of your business, and the type of services you offer in order to calculate your premium. The more coverage and higher limits you select, the more your policy is likely to cost.


It’s important to shop around and compare quotes from different insurers in order to find the policy that best fits your budget and needs. Working with an experienced insurance agent can help to ensure that you get the proper coverage at an affordable rate.

Protect Your Practice with Daycare Insurance in California!


As a business owner, you are constantly at risk for accidents, theft, vandalism, property damage, and workplace injuries. Daycare providers are no exception to this rule. When these risks present themselves, you have two options: allow the damage to knock you down and force your business to close its doors or pick yourself up and carry on as if nothing happened.


How prepared you are for the future will determine your level of success. Having a childcare plan in place gives you the reassurance that should something happen, you'll be ready to get right back on track.


With the right guidance from an experienced daycare insurance provider in California, you can find the coverage that's right for your business and protect your livelihood from any potential risks down the line.

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