What is daycare insurance?

The work of watching children comes with major responsibilities, and any such responsibilities have accompanying risks. To protect against potential risks, daycares should have policies and follow practices that ensure the safety of all staff and kids. Texas daycares should also have daycare insurance, just in case something happens.

Daycare insurance is a specialized commercial insurance for child care centers. Policies can protect child care centers from a variety of liability and property risks that they’re exposed to.

Which daycare centers in Texas need to have child care insurance?

Texas state law generally requires that daycares have at least $300,000 in liability coverage. Higher limits and other protections are broadly recommended. Moreover, the requirement extends to “family home or other daycare” businesses.

While there are possible exceptions, it’s normally not recommended that daycares go without insurance as this can lead to major risk exposure. 

Daycares that have used a policy’s $300,000 in liability coverage and are having trouble finding another policy should work with an insurance agent specializing in child care insurance. A specialized agent can check what options are available for the business.

Get A Quote

Evie has been my insurance agent for many years now. She is perhaps the most knowledgeable person in insurance I have ever dealt with and always gives you the information and available choices like you were family. Her service is exceptional and her advice has always been invaluable for me and my family. I can say without a doubt that I would highly recommend her for anyone’s insurance needs

What types of businesses is child care insurance right for?

It’s not just family homes and standard daycares that get child care insurance . While these businesses typically do need this type of policy, so too might a range of other businesses that offer child care. A more extensive list of businesses that may want one of these policies includes:

  • Daycare and child care centers
  • Family home daycares
  • Before- and after-school child care programs
  • Religious organizations with nursery schools
  • Businesses providing daycare as an ancillary service
  • Employers directly offering daycare for employees’ children

What liability coverages are included in daycare policies?

Many of the coverages included within daycare policies focus on liability protections. For example, the following coverages are all commonly available through these policies:

  • General Liability Coverage: May cover common “slip and fall” accidents occurring on the daycare’s property. Usually extends coverage to non-employees, such as children, parents and cleaning service personnel.
  • Accidental Death & Dismemberment Coverage: May cover child injuries that are deemed to be unforeseeable and accidental. For instance, might cover injuries occurring on a field trip or the playground.
  • Accident Medical Expense Coverage: May provide additional coverage for medical expenses associated with a child’s injury.
  • Abuse & Molestation Coverage: May cover allegations of inappropriate conduct by employees.
  • Directors & Officers Coverage: May cover directors or other leaders from allegations specific to their roles within the business.

In addition to these, daycares might also need commercial property coverage, tenants betterment coverage, business income coverage, commercial auto coverage and other protections. A specialized agent can help daycares determine which coverage choices make sense for their situation.

Can affidavits and waivers substitute for child care liability coverage?

Affidavits and waivers might aid in defending against a liability lawsuit, but any protection they give is different from an insurance coverage. These generally aren’t an adequate substitute for liability insurance coverage.

While affidavits and waivers might serve as potential defenses during a lawsuit, they aren’t foolproof safeguards against childcare insurance. 

Daycare Insurance Texas

How should daycares determine their liability limits?

Texas state law generally requires that daycares carry a minimum of $300,000 in liability coverage, but this doesn’t mean that only $300,000 is sufficient coverage for all businesses in the industry. A single allegation, not to mention a successful lawsuit, could result in legal fees and other costs of $300,000 or much more.

For specific help with choosing liability limits, daycares can talk with a knowledgeable insurance agent. An agent who knows these policies well will be familiar with the limits that daycares typically carry, and be able to assist in selecting a specific amount.

How can Texas child care providers get daycare insurance?

If you need help insuring a daycare or other child care center that’s in Texas, reach out to the independent insurance agents at Wise Insurance Group. Our team will help you find daycare insurance that keeps your business well-protected.

Let's start with a free quote!