Does Your Vehicle Insurance Still Cover You? Navigating the Risks of Transporting Children in Your Family Child Care Business
As a family child care provider, your heart is filled with the desire to offer the best possible experiences for the children in your care. Field trips, outings, and even simple errands can enrich their lives and provide valuable learning opportunities. Before you buckle up and hit the road, there's a crucial question you must ask yourself: "Does my vehicle insurance still cover me?"
The harsh reality is that getting into a vehicle with children is probably the biggest financial risk you can take as a family child care provider. The potential for multiple injuries, property damage, and lawsuits looms, and the consequences can be devastating. Take the heartbreaking story of a Minnesota provider who lost two children in a van fire on the freeway. Inadequate vehicle insurance left her out of business and buried under hundreds of thousands of dollars in claims she couldn't pay.
It's a sobering reminder that your homeowners and business liability insurance policies will not protect you when you're behind the wheel. Your vehicle insurance is your only safeguard, and it's imperative that you ensure it covers you adequately.
So, how do you navigate this complex landscape? The first step is to have an honest conversation with your vehicle insurance agent. Describe in detail how you use your vehicle for your business:
Do you transport children daily, weekly, monthly, rarely, or never?
Do you use your car for business errands like trips to the bank, training workshops, grocery stores, or hardware stores?
Once you've laid out all the ways your vehicle is used for your business, ask the critical question: "Am I covered in all of these situations?" If your agent says yes, get it in writing. If it's not in writing, assume you're not covered.
Now, let's talk coverage amounts. At a minimum, you should have:
Bodily injury and property damage coverage of at least $500,000 for each accident, or split limits of $250,000 per person/$500,000 per occurrence for bodily injury and $250,000 for property damage.
Uninsured motorist bodily injury coverage of at least $500,000 for each person and each accident, or split limits as above.
Under-insured motorist bodily injury coverage of at least $500,000 for each person and each accident, or split limits as above.
Consider a higher deductible ($1,000) to help manage the cost of your policy.
Some providers opt for an umbrella insurance policy to raise coverage limits on their homeowners and car insurance. However, before purchasing, verify that it will indeed increase coverage for accidents during business trips.
If you regularly transport children, you may find that commercial vehicle insurance is your only option for adequate coverage. The cost can be prohibitive, leading some providers to conclude that they can no longer afford to transport children. Public transportation or hiring a van may be more cost-effective alternatives.
The bottom line is this: do not get into a vehicle unless you are adequately insured and have it in writing. Most providers have not taken the time to confirm their coverage with their insurance agent, and some insurance companies will not cover child care providers at all.
Don't let the unthinkable happen to you and the children in your care. Have the conversation, get the coverage, and put it in writing. The peace of mind is worth its weight in gold, and the safety of the precious lives in your hands is priceless.
