Insurance is very important for protecting your child care business. The specific type of insurance and amount may depend upon where you live and will be best determined after consulting with several different insurance agents. However, no matter where you live, you will want to ensure you have adequate liability and accident insurance.

Liability Insurance for Daycare Providers

While a child is in your care, you are liable for an accident which happens due to negligence caused by yourself, an employee, or your property. Most states will require a minimum amount of liability insurance, but even if it is not required, you should still protect your business with this coverage. If you are sued by a parent and it is decided in court that you are liable, then the insurance coverage will pay the cost up to the amount of your coverage. In fact, liability insurance generally covers these four areas: immediate medical care, legal costs, property damage, and bodily injury.

You can protect yourself from lawsuits by making your daycare center as safe as possible. When starting your daycare, keep safety at the forefront of your renovations and design. Develop safety policies and procedures and make sure your staff is proficient in them. In addition, learn basic first aid and make sure your staff is certified in CPR. Follow basic safety guidelines such as using safety gates, cleaning up spills right away, and child proofing each and every room in your building where children will be present.

Property Insurance for Daycare Providers

In addition to liability insurance, you will also need to buy insurance to protect your property if it is damaged. This type of insurance is pretty straight forward. Just make sure you understand what exactly is covered under your policy. For example, in the event of fire or flood, would your insurance policy cover the cost of repair? You should never assume that it would. Make sure you know before you buy the policy.

If you have employees, you may want to offer group health insurance. In most instances, this is not required and is up to you as the employer if you want to offer coverage. When deciding on this or any other type of insurance coverage for your daycare, it is a good idea to get quotes from several different agents so you get the best deal for your money. When comparing quotes, be sure to compare details of the coverage also. Buying the cheapest insurance may not be a good idea if your coverage is not adequate.

When starting a daycare, you will have many important decisions to make. Getting the right type and amount of insurance coverage is one of those, and advice from a qualified professional should be taken into consideration.