Get cheap childcare insurance quotes for free.

What is childcare insurance?

Childcare insurance is a policy or set of policies designed for childcare providers, including daycare centres, nurseries and similar facilities. Accidents, injuries, property damage and liability claims are some of the risks childcare insurance can protect you from.

It addresses the specific challenges childcare providers face daily – from playground accidents to allegations of inadequate supervision. It provides financial protection and peace of mind, allowing your operation to focus on what matters most: providing quality care for children.

What childcare insurance includes

Childcare insurance would typically cover you in the following areas:

• Commercial general liability (CGL): Protects against third-party claims for bodily injury or property damage occurring on your premises or during your operations. If, for instance, a child hurts themselves by slipping and falling on a wet floor at your facility, you could be held liable. There’s a reason this coverage is often referred to as ‘slip and fall.’
• Professional liability: Also called errors and omissions (E&O) insurance, this covers claims related to your professional services, including allegations of inadequate supervision, failure to follow care plans or educational negligence. Your employees can make mistakes, and if those mistakes end up hurting the children you care for, you might face legal action.
• Commercial property: This protects your building, equipment, toys and supplies from covered perils like fire, theft or vandalism. This coverage works like home insurance but tailored for your business property.
• Workers’ compensation: Provides coverage for employee injuries that occur during work hours, including medical expenses and lost wages.

Recommended add-ons for childcare insurance coverage

While basic coverage is a great start, you may want to consider these additional protections:

• Business interruption: Provides income replacement if your facility must temporarily close due to covered damages.
• Commercial auto: If you provide field trips or transportation services, this extends protection to vehicles and activities off-site.
• Cyber liability: Safeguards against data breaches and cyberattacks that could compromise sensitive information about the children and their families.

Common types of childcare insurance claims

Here are some examples of the kinds of claims childcare providers like you tend to file:

• Slip-and-fall accidents: While dropping off their child at your facility, a parent trips over a toy and injures their ankle. Commercial general liability would help you cover any potential legal issues.
• Inadequate supervision: A child may get injured on your playground, while being watched by one of your employees. This could lead to claims of inadequate supervision. Professional liability would provide you with the necessary coverage in case you need to protect yourself.
• Data security breaches: A hacker breaks into your system stealing confidential family information. Cyber liability coverage would help you pay for data restoration and any legal fees, if necessary.

How much does childcare insurance cost?

There’s no flat rate for childcare insurance because coverage is highly customizable. The size of your facility will play a big role in this. You’re looking at premiums starting at $700 per year for smaller facilities (especially if it’s a home daycare) and going up to $3,000 per year or more for larger facilities.

Some of the factors that may impact your insurance premium include:

• Type of coverage: Basic policies with standard coverage will cost less than comprehensive policies with multiple add-ons.
• Coverage amount: The higher the coverage limits, the more expensive the policy.
• Location: Insurance costs can vary based on where your childcare facility is located. If the area has a lot of crime, for example, then there is a higher likelihood that your equipment, toys or furniture may be stolen.
• Facility size and capacity: More children and staff increase potential exposure and insurance costs.
• Safety measures and protocols: Facilities with comprehensive safety programs, security systems, and training protocols often qualify for discounts.
• Claims history: If you have recently filed a claim, then there is a high chance that you’ll file another one in the future. Insurers take this into account and adjust their premiums accordingly. As you might expect, more claims in the past mean higher premiums in the future.

How to get the cheapest childcare insurance rates

Finding affordable childcare insurance doesn’t mean you have to compromise on coverage. Here are some tips to get the best rates:

• Shop around: Compare quotes from multiple insurance companies to find the best deal.
• Bundle policies: Combine your childcare insurance with other business coverage like commercial auto or umbrella policies for multi-policy discounts.
• Consider higher deductibles: Increasing your deductible can lower your premiums, but ensure you can afford the out-of-pocket costs if claims occur.
• Maintain a good record: A clean claim history can lower your premiums.