Insurance for Day Care Centers
Day care operations are generally subject to state licensing, although some states exempt those serving a small number of children or those run by religious institutions. The license issued establishes the number and ages of children who can be cared for. Important factors are the adult to child ratio, hours of operation, and the number and ages of children served.
Recommended Insurance Programs for Child Care
Day care services generally include at least one meal a day, snacks, activities, naps, indoor and outdoor play areas, and various learning opportunities. Prescribed medication can be administered, but most day care centers do not have staff nurses. In-home day care providers are sometimes written and endorsed onto homeowners policies.
Coverages Recommended for Daycare Centers:
Other coverages to consider for Daycare Providers:
Building, Forgery, Computer Fraud, Employment-related Practices Liability, Abuse and Molestation Coverage (often included with Professional Liability.
Common Risks and Needs Associated with Day Care Faclitites
|General Liability Insurance|
Premises liability exposures are extremely high when young children are involved. The adult/child ratio should be low enough to permit adequate supervision. Evacuation drills should be conducted regularly. Procedures should be posted that address all emergencies, with instructors and aides trained in their use. References for all employees and volunteers should be verified, including criminal background checks. Access to the building must be limited during operating hours to keep children safe. The procedures in place for delivery and pickup or release of children to adults should be evaluated carefully.
|Daycare Professional Liability Insurance|
Abuse and molestation exposures must be considered when supervision of children is involved. The abuser is never covered under the policy. While there is some coverage for the facility where the abuse takes place, it can be very limited depending on the policy. More comprehensive coverage should be purchased from specialized markets. The facility is responsible for taking all possible care to protect students from predatory adults and older students through background checks, monitoring, supervision, and by reporting all allegations of abuse to the proper authorities. The more vulnerable the potential victim, the more vigilant the facility should be to protect them.
|Commercial Property Insurance|
Property exposures include an office, kitchen, classrooms, and outdoor play areas. Ignition sources include electrical wiring, stoves for cooking, and heating and air conditioning equipment. All wiring should be up to code. Overriding circuit breakers and fuse boxes should not be allowed. The high volume of paper, craft supplies, toys and other items contribute to the spread of fire. Wood and/or plastic furnishings increase the fire load. Most equipment is susceptible to and easily damaged by fire. Food preparation is generally limited to stovetop or microwave cooking, but any cooking increases the fire loss potential
|Commercial Auto- Hired and Non-Owned|
Automobile exposures are a major concern and the potential for loss or injury is high if the facility transports children to and from off-premises activities. All drivers should have the appropriate license for the type of vehicle used to transport children. Car seats must be used as required by state law. Appropriate supervision should be provided when multiple children are transported. Motor Vehicle Reports (MVRs) on all drivers should be checked regularly. All vehicles must be properly maintained and maintenance records kept at a central location.
|Commercial Crime Coverage|
Crime exposures are primarily from employee dishonesty. Hazards increase without proper background checks. All job duties, such as ordering, billing and disbursing, should be separate and reconciled on a regular basis. Receipts should be issued for cash payments received from parents. Bank deposits should be made on a timely basis to limit the buildup of cash on the premises. Audits should be performed at least annually.
|Workers Compensation Insurance|
Workers compensation exposures from back injuries, lifting, hernias, sprains, strains, slips and falls can be high, along with exposure to communicable diseases. All employees should have up-to-date immunizations to prevent the spread of communicable diseases. Unauthorized visitors can pose a threat to employees as well as children.
Liability Quotes for Day Cares
General Liability Shop.com offers affordable liability insurance quotes for day care throughout the U.S. Our daycare programs include all lines of business insurance, as well as our Target programs for business owners policies (BOP). Contact one of our business insurance Specialists today at (800) 900-8657, or start a quote online now.
Our Top Carrier Solutions for Day Care
Day Care Liability Classification Codes
Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for day care. Here are the most common business insurance classification for child care facilities:
Business Liability Category: Service- Child Care
SIC Business Insurance Codes:
• 8351- Child Care Services
NAICS Liability Classifications:
• 624410- Child Day Care Services
• 624120- Day Services for Elderly
Business ISO General Liability:
• Code: 41715- Day Care Centers (for profit)
• Code: 41716- Day Care Centers (non-profit)
• Code: 41716- Day Care- In Home
Common Workers Compensation Class Codes:
• 8869- Child Day Center- Professional Employees
• 8869- Child Day Center- All Other Employees
• 9059- (California Only) Child Day Center- All Employees
Day care insurance packages are not all the same. Some have more robust coverages. We offer a great target program for day care centers with the very best coverages and affordable rates.
Get a complete daycare insurance quote with us today.