Operating a home day care involves a lot of responsibility. You’re taking the life of other people’s children into your hands. You feed them, clothe them, and keep them safe. It’s a lot to handle.

Because these are not your children and your day care is your livelihood, being adequately protected is essential to your success. That’s where home day care insurance comes into play.

Home day care insurance is designed to provide financial protection for your business in the event of unexpected incidents. Let’s face it–when there are children involved, anything can happen. Read on for more information about the main three types of home day care insurance you need and what others may be available to protect you and your business even more.

Liability Insurance

Liability insurance is essential for any home day care provider. This type of insurance protects you if you’re found legally responsible for injuries to children or others, or for damage to another person’s property while you’re running your business. There are several aspects of liability insurance that include:

• Bodily Injury Coverage: This part of liability insurance covers the potential costs that are associated with injuries that occur on your property or during day to day activities. It helps with medical expenses, legal fees, and any other type of compensation a parent may seek due to injuries to their child.
• Property Damage Coverage: If a child under your care damages someone else’s property while in your charge, this will help pay for repairs or replacement. If little Johnny throws a rock through someone’s window, do you really want to come out of pocket for $800 to replace it? This sets aside being neighborly and gets down to business.
• Legal Defense and Settlements: This insurance covers you in the event of a lawsuit. It helps with legal defense and any settlements or judgements against you.
• Child Abuse and Molestation: If a child or parent accuses you of child abuse or molestation, this type of insurance helps with legal fees and defense fees from the lawsuit.
• Swimming Pool Accidents: Having a pool is a liability of its own, but when you’re watching children–it’s even more so. It’s important to make sure that any type of insurance covers pools if you have one. Having a water day with a small inflatable pool? You’ll still want to be covered.
• Off-Premise Coverage: If you’re thinking of taking the kids on a field trip, check with your policy to make sure the kids are covered when you’re operating away from your home. Accidents can happen at any time and you want to make sure the children are covered.

Protecting yourself and your business with adequate insurance ensures that an accident or unforeseen incident doesn’t result in financial ruin that not only jeopardizes your livelihood, but your home and family too.

Property Insurance

Because your business operates out of your home, you’ll need to make sure that your property is insured properly. Most existing homeowners insurance policies don’t cover commercial ventures so you’ll need to speak with your current home insurance provider to see what your policy covers. Then you’ll want to speak with daycare insurance specialists, like FDIC, because they are the experts who can tell you where your current policy may be lacking.

Property insurance typically covers:

1. Building Coverage: Children can get rambunctious so this type of insurance covers your home if it is damaged due to running your business. Building coverage helps cover the cost of repair or rebuilding.
2. Contents Coverage: This insurance includes protection for equipment, toys, furniture, and other related items inside your day care. Kids are destructive and accidents happen. You don’t want to constantly have to come out of pocket for new expensive tables.
3. Loss of Income: If a covered event should happen that forces you out of work for a time, this type of insurance helps you get over the hump until business can begin again.

Property insurance is essential because it not only safeguards your home and assets, but also the continuity of your business operations should something catastrophic happen and halts your business.

Auto Insurance for Transporting Children

If your in-home day care service includes transporting children in a vehicle, whether that’s for field trips or daily pick-ups and drop-offs, it’s crucial that you consider specialized auto insurance. Your personal auto insurance policy may not cover accidents or incidents that occur when using your vehicle for commercial purposes. Here’s how additional auto insurance can protect you:

1. Liability Coverage: Much like the liability insurance you need when operating in your home, this protects you in case you’re at fault in an accident and covers injury to others or property.
2. Comprehensive and Collision Coverage: This covers damage to your vehicle from accidents, theft, or other covered issues.
3. Medical Payments Coverage: If you or someone you are transporting experiences an injury, this helps cover the medical costs.

Obtaining the proper auto insurance coverage when you’re transporting children is vital for their safety, and yours. It also protects your business if you’re faced with hefty repairs to your vehicle.

Exploring Other Types of In-Home Day Care Insurance

Now that you know the types of home day care insurance that every in-home day care needs, there are some other types of insurance you may want to consider to better protect yourself. They are:

• Workers’ Compensation Insurance: If business is booming and you decide to branch out to hire an employee or two, this insurance can cover medical expenses and lost wages for work related injuries.
• Professional Liability Insurance: This type of insurance is also called errors and omissions insurance. It can protect you from claims of negligence on the job.
• Umbrella Insurance: If your in-home day care is more extensive than a few kids, but less extensive than a commercial day care, you may want to consider umbrella coverage. It extends your policy beyond its current limits and offers an extra layer of protection.

Every day care, person, and situation is unique. The types and quantities of coverage you may need will vary based on your particular set of circumstances. It’s important to consult with an insurance professional at a company that has expertise in day care insurance. They will tailor a package that meets the needs of your business.

Every Home Day Care Needs Protection and FDIC Can Help

When your life’s profession is taking care of other people’s children, it’s your responsibility to have the coverage you need to protect them, you, and your business, should an unfortunate event happen. Liability insurance, property insurance, and auto insurance, form a comprehensive safety net so that you can focus on the fun instead of the worry.

Call us today to discuss your business needs and we will be happy to discuss your options.