If you are in the daycare business, you need to protect your investment with insurance just as you would any other investment. Below are some of the various forms of insurance you may need.

Liability Insurance

Liability insurance is a must-have for a daycare business. You can be sued anytime by the parents of the children under your care. A child can slip and fall on the playground, a swing can hit one of the children, and the children can get sick due to food poisoning. Anything that harms the children in your daycare can attract liability claims. 

Abuse and Molestation Coverage

Abuse and molestation allegations can cost your business a lot of money, even if the allegations are not true. You will need legal defense if your daycare faces such accusations. The defense costs, compensation costs, and damage to your reputation can ruin your business if you are not careful. Unfortunately, general liability insurance excludes abuse and molestation claims. You need separate coverage or an add-on for abuse and molestation coverage.

Errors and Omission Coverage

Errors and omission (E&O) coverage protects your business from mistakes that it might make when discharging its services. The coverage kicks in if there is a shortfall between what your business promised its clients and what the business delivered. Say you promised the parents that their kids would know how to read after one year, and some kids fail to master reading after the stated period. E & O coverage can help you if parents sue you for the failed promises.

Commercial Auto Insurance

Most daycares have vehicles that they use for different services such as delivering goods or picking up and dropping off children. Such vehicles should be on commercial insurance policies and not on a personal insurance policy. If you use your private car, with its personal insurance, in your daycare, then the insurance won't protect you if the car causes or is involved in an accident in the cause of its duty.

Workers' Compensation

A daycare requires employees to run, and it is the government's policy that every business (with few exceptions) with employees must have workers' compensation insurance. The coverage is not just a legal requirement; you also need it to protect yourself from claims the employees might raise against your business.

Property Insurance

Daycares operate on physical properties, so it makes sense to buy property insurance for the premises. That way, the insurance company can help you rebuild if a storm damages your daycare building or if a fire razes the building to the ground. This coverage is only necessary if you own the building under which you operate your daycare business.

Contact a commercial insurance agency to learn more.