Does my homeowner’s/renter’s policy cover my child care business?

They do not automatically cover your child care business.  Some homeowner’s policies have an endorsement that can be added to include some coverage, but it is usually limited and does not provide coverage for much needed child abuse coverage.  There are also several other limitations on the homeowner’s endorsements that can leave you high and dry.

 

Am I required to carry liability insurance?

Many states require you to carry insurance, but not all of them.  Check with your state licensing/registering  agency or call our office.

 

 

FAQ’s

 

On my liability policy there is a per occurrence limit.  What does that mean?

It covers claims based on when they occurred up to that amount.  So if you go out of business or change insurance companies and get sued for something that happened while you are covered on an occurrence based policy, you would be covered on the policy even though it is expired.

 

 

On my liability policy there is a per claim limit.  What does that mean?

A “Claims-Made” form covers claims that are reported during a specific period of time.  Usually this time is during the policy period or within 1-2 years of it’s expiration.  We recommend occurrence based policies.

 

How much insurance do I need?

That depends on your situation.  Some states have minimum requirements that must be followed.  We will be happy to discuss your situation and needs and provide some recommendations.

 

Does an affidavit or waiver protect me?

No, it does not!  A parent or guardian can still sue you and collect any money awarded to them.  If you do not have liability insurance, the defense costs and settlement would come out of your pocket.

 

What specialized coverages should be included on a child care liability policy?

Alienation of Affection: This protects you in the event you are sued for “stealing the affection and control” of a child from their parent or legal guardian.

 

Defense Coverage:  Pays for your legal defense in the event of a lawsuit.  Many policies include this coverage in addition to the policy limit so your liability coverage is not reduced.

 

Contractual Liability: This covers any written obligations and agreements.  For example any field trip or medical forms provided by you that cause a lawsuit.

 

Field Trips/Off Premised Activities:  This provides coverage when you are away from your premises.

 

Products Liability: Includes preparing and serving food to the children.

 

Personal Injury:  This coverage protects you against libel, slander, false arrest, wrongful eviction and malicious prosecution.

 

What are some additional coverages I should consider?

Non-owned Auto Liability:  Provides protection from lawsuits resulting from an auto accident when they are using their car on your behalf.  If you have a business auto policy you should have this as part of your coverage there.  If not, you can include it with your liability.

 

Accidental Medical Insurance:  This pays medical bills resulting from an accident regardless of fault.

 

Can I deduct my business insurance from my taxes?

Yes.  It is tax deductible.

 

What are exclusions and what should I watch out for?

Exclusions are events that are not covered by the policy.  They are excluded from coverage.  All insurance policies have exclusions. You  should be sure you do not have exclusions for things that you are at risk for.  For example, some policies exclude coverage for all dogs on the premise.  If you have a dog around the children you care for, you would want to make should you do not have this exclusion.  Other exclusions to check for are: swimming pools or other bodies or water; overnight care; HIV/AIDS or communicable diseases; or non-emergency care before or after your regular operating hours.

 

Do I need business auto insurance?

If you own a vehicle that is used in transporting the children in your care, you should have a business auto policy.  Be sure your policy also includes non-owned liability coverage.

 

What is worker’s compensation insurance?

It pays medical expenses, rehabilitation expenses and disability benefits to employees that are injured on the job.  It also pays a death benefit should an employee die as a result of their job.  Most states require employers to have worker’s compensation coverage if they have any employees.  Many times the owners can include or exclude themselves in this coverage.