The daycare industry in the USA has grown significantly in the last 5 years. As more and more families turn into two-income households, the need for daycare centers has become indispensable. Those who have children aged under five are always on the lookout for reliable and trustworthy daycare centers.
It is estimated that by 2021, there will be nearly 856,238 daycare businesses in the USA. Because of this fact, daycare operators increasingly need help with their liability needs. This insurance is designed to meet the evolving needs of childcare businesses. In Connecticut, the average yearly cost of infant care is typically $13,880.
Since daycare insurance is a growing niche, many daycare owners have trouble finding the right insurance providers. If you’re looking for a reliable and certified insurance company in Connecticut, work with a Pawson agent to cover all aspects of your daycare.
Here’s a quick breakdown of what daycare insurance covers and what kind of businesses qualify for it.
Daycare insurance covers a wide range of areas, with the most important being General Liability Insurance. This is the baseline coverage for daycare businesses. It includes coverage for bodily injuries, reputational harm, and property damage. Most operators think that General Liability Insurance is all-encompassing. However, your daycare center also needs the following list of coverage for a full proof and secure business.
Property Insurance specifically protects all of your assets including any equipment, supplies, and the building of the daycare center. If you’re renting a business space as a daycare center, property insurance will protect each and every asset on the premise. However, any physical damage is also covered by general liability. You can get your daycare center insured for its actual cash value or accept its replacement cost.
Professional Liability Insurance
While providing professional services, if the owner or the staff has been accused of any harm, professional liability insurance steps to cover the legal costs. Since negligence, professional errors, or omissions on the daycare property aren’t covered by general liability, you need an individual policy.
Don’t ignore this coverage as mistakes are unavoidable. Even a simple instance of mishandling a child who’s not well or allergic to certain types of food can come under this.
If the staff uses a wrong swaddling technique for an infant, they could be held accountable too. Parents can be quick to accuse, so make sure you’re covered for the legal costs.
Workers’ Compensation Insurance
This insurance will cover any costs associated with your employees’ injuries or illnesses. If they’re harmed in any way while providing professional services, workers’ compensation insurance will cover lost wages, medical bills, and other work-related injuries.
These hazards include:
- Slips and falls on wet, slippery floors
- Injury from toys or at the playground equipment
- Bites from children at the premise
- Bacteria or viruses
This insurance is extremely important because it’s not covered in general or professional liability. In case you don’t have it, you’ll have to pay for the loss of your employee.
Commercial Auto Insurance
If you’re using any form of the vehicle at the daycare premise, you need commercial auto insurance. In case of an accident, this is going to cover all the lawsuits and damages you might face. This coverage includes:
- Medical payments for injuries that are sustained to anyone during the accident at the daycare center
- Collision payments for any damage or harm to the care during the accident
- Comprehensive payment for any other events that might damage your car
- Uninsured and underinsured motorist coverage pays for repair and medical bills in case the driver was at fault and doesn’t have funds for coverage.
You will also need Umbrella Insurance that covers all the additional fines and costs that exceed the liabilities mentioned above. At times, legal fees might exceed coverage and the Umbrella Insurance will cover you when other liabilities fall short.
These typically include:
- Looking after children from wealthy, high net worth families as they have greater resources to sue
- Renting a large daycare center
- Coverage for large liability lawsuits that the owner can’t pay for
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