Ten Questions to Ask Before You Purchase Family Child Care Business Liability Insurance

1) What is the lowest limit available for “per occurrence” coverage _________________________
and “aggregate” coverage __________________________

What is the highest limit available for “per occurrence” coverage _________________________
and “aggregate” coverage __________________________

“Per occurrence” is coverage for each incident. “Aggregate” coverage is the total amount the policy will
pay out in a year. Ideally, you want the highest coverage.

2) Does the policy cover Professional or General Liability for me, my employees and
volunteers? Professional __________ General __________

A General Liability policy will only cover you if the parent can prove you were negligent. You want a
Professional Liability policy that will cover you even if you aren’t negligent. It covers you against
accusations of failing to render professional services.

3) Will attorney fees paid by the insurance company to defend you lower the amount of the coverage
under the policy limits? Yes _____ No _____
You don’t want attorney’s fees to lower the amount of your policy coverage.

4) Does the policy cover for allegations of child abuse/neglect, including corporal punishment,
physical and mental abuse?
Yes _____ No _____
You want this type of coverage.
If Yes, what is the limit of the coverage? __________________
Does the policy cover child abuse/neglect allegations against me or any other individual on the
premises? Yes __ No __
Ask to see language in the policy that describes who is insured.

5) If a child care regulatory agency holds an administrative hearing that could negatively impact my
ability to care for children, will the insurance company pay for an attorney to represent me?
Yes _____ No _____
This is a nice benefit.
If Yes, how much will the policy pay for the attorney fees? ____________

6) Is the insurance policy written for me (“individual policy”) or is it written under a “master
Individual policy _____ Master policy _____
An individual policy will more likely cover you for specific risks associated with your particular
If coverage is under a master policy, is the aggregate limit shared by all policy holders? Yes
_____ No _____
If so, there is a risk that the policy will run out of money before you can make a claim.

7) Does the policy include accidental medical insurance? Yes _____ No _____
If Yes, what is the policy limit for each enrolled child injured? __________________________
Is the accident coverage “Primary” _____ or “Excess” ______
If you have “primary” coverage this means your insurance company will pay a claim right away, rather
than waiting to see if the parent’s insurance will pay. The trade off is that primary coverage may be more
expensive than “excess” coverage.
Does the policy include coverage for all enrolled children injured on and off your premises? Yes
_____ No _____
Can anyone other than the children in care be added to the accident medical policy? Yes _____ No

8) What is the deductible for each claim against the liability policy? ________________
What is the deductible for each claim against the accident policy? _______________
Ideally, you don’t want to have to pay for any deductibles.

9) How are the following exposures treated in the policy?
Covered Excluded Conditional
a. Owned Animals ______ _____ _____
i. Which dog breeds are excluded? _________________________
ii. What are the limits of the coverage?
b. Libel/Slander _____ _____ _____
c. Play equipment ______ _____ _____
d. Extended hours ______ _____ _____
e. Dispensing medication ______ _____ _____
f. Food preparation ______ _____ _____
g. Swimming pools ______ _____ _____
h. Corporal punishment ______ _____ _____
The more your policy covers you in these situations, the better.

10) Are there other options available to me under your insurance program?
Yes          No
a. Loss of business property     _____ _____
b. Loss of business income       _____ _____
c. Homeowners insurance        _____ _____
d. Automobile insurance          _____ _____
e. Workers’ Compensation insurance _____ _____
Sometimes it can be better to purchase multiple insurance policies through one insurance company.

This checklist was created by the National Association for Family Child Care, Tom Copeland, and several
insurance agents.

Tom Copeland – www.tomcopelandblog.com