Ask the Experts: What Kind of Insurance Do I Need?

Question: I’m looking for help in trying to find insurance for my childcare center. I know the building needs to be insured along with the items in it. Also, I have to have some type of insurance for the children that will be attending. Do I get general liability insurance, and is there any other coverage you recommend?

Answer: General liability insurance alone is not enough for optimal coverage.  A Business Owner’s Policy, or BOP, covers liability AND property losses whereas commercial general liability only covers liability losses. With BOP insurance, your general liability is covered, so you do not need a separate general liability policy.

What you do need, though, are some additional policies. We’d highly recommend property insurance, worker's compensation coverage, and perhaps an umbrella policy to provide an added layer of protection.  Depending on your activities, you may want to talk to your agent about additional coverage for cybersecurity (data breach), loss of business income, or commercial auto if you are transporting children.

If your center happens to be a nonprofit organization, you also should have Directors and Officers liability coverage to protect your officers and Board members.  This is often quite inexpensive and can typically be purchased as an addendum or rider on a primary liability policy.

Insurance coverage for home daycares is a unique mix of different policies that are unique among the business landscape, so providers should be direct when calling insurance companies looking for coverage that they are seeking to insure their home daycare.

Do you have a question about your insurance coverage or any other aspect of your child care business? Reach out to our team of experts!