What Kind Of Insurance Should A Daycare Have

Looking after children of any age is among the most responsible and important jobs out there. Not everyone is capable of handling it which is why parents spend a lot of time deciding who the right people for the job are and what kind of facility they can trust. On top of that, daycare has become a normal thing in the modern world since more and more families are comprised of two working parents, contrary to what we saw back in the day. Of course, they still want to have children but their schedules make it impossible to always be at home. Conflicting schedules, as well as the child’s needs, are often a problem so the need for daycare facilities and preschools is greater than ever.

While the parents are evaluating their choices and picking the right facility, one of the crucial things they pay attention to is the kind of insurance the daycare has. Insurance is so important in this line of work that the daycare owners and managers themselves have to think about protecting both their own property and employees as well as the children who spend hours on the premises each day. All in all, it is a very complex topic and definitely one that needs a deeper dive. If you want to equip your daycare services with the best insurance there is and you happen to be in the state of California, make sure to check out what has to offer. In the meantime, we explore what kind of insurance there needs to exist with such a facility.

Who Needs It


Before we talk more about the different types of insurance policies to think about, we have to mention who it is right and meant for. Business owners whose work revolves around taking care and looking after children in any way, shape, or form have to think about this. Therefore, if you are involved with commercial daycare facilities and child homes and run a nonprofit daycare center, a religious center, an after or before school program, a summer or, a children’s sports camp, the following types of insurance are definitely something you should think about. This will help you to attract more parents who will deem your business trustworthy and serious enough for them to let you care for their children while they are busy.

Common Childcare and Daycare Insurance


In the world of insurance, there are numerous policies that businesses and individuals can get for their needs. It greatly depends on who and what you are so it would be smart to first evaluate exactly what kind of services and what amount of it you will be doing. Only then will you be able to know the exact policies to get. In the following sections, we will discuss the most common daycare insurance policies that most businesses in this line of work have.

Since you will be looking after other people’s children there needs to be insurance in place that will cover third-party bodily injury claims as well as property damage and the harm of reputation. Problems like these are covered by general liability insurance.

Next up, you absolutely have to get property insurance. As its name suggests, it covers the assets of your business including the very building as well as everything in it like the supplies and equipment that help you carry out your everyday services. Property should always be insured no matter what it is used for.

In order to protect both the employees and the kids, there should be professional liability insurance. It covers the claims that take place from the mistakes, omissions, and/or negligence while the caregivers work. If somebody or something suffers under their watch, or lack thereof, under the aforementioned circumstances, you will definitely want to have it covered.

It goes without saying that no employee should ever abuse a child they are paid to look after. If there are losses that arose following such an unlikely scenario and your worker has indeed abused a child who was under the care of your facility, the abuse and molestation coverage will help you overcome it.


Commercial auto insurance is a must if you have a business vehicle as a part of your system. Many daycares have vans or even small buses which they use to pick up or drop off kids before and after their daycare stays. If there are ever any injuries, damages, and lawsuits involved following an accident in such a vehicle, this type of auto insurance will be of immense help to you.

It is important to view your employees as more than just the workforce doing the work in your place of business. Helping them and providing them with what they need will ensure their trust and readiness to help you improve and expand. Therefore, the worker’s compensation insurance you provide should be above average and cover things like medical bills and wage replacement if any of them sustain workplace injuries.

Among the most basic policies to think about is definitely accident insurance that will provide injured children and their parents with benefits and help you cover what they are covered for such scenarios. Not having this and having an injured child can be a nightmare both for the wallet and the reputation of your business.

Last but not least, it would be a good idea to consider umbrella insurance which can help with a wide variety of different things. Fear of liability lawsuits that are larger than you can handle will be covered, and if you have to care for children who come from high income and high net worth families, the parents may be more likely to sue and have more demands. On the other hand, if your old space has become too small and you now need to rent something larger, the landlords may want high liability limits so the umbrella insurance again lends a helping hand. Naturally, if you grow you need more staff and you guessed it, this policy can be extended and cover more things.

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