In this hectic, two-income world we live in today, many people have started daycare in their home. Daycares, sometimes called childcare facilities, are predominantly women-owned businesses, and the business has allowed spouses to stay with their own children and supplement the household with an income by caring for other children.
A huge mistake made by these daycare owners is assuming that their homeowner’s insurance will cover any daycare insurance related claims.
Most states which license daycare providers will require some proof of daycare insurance. However, there is normally a size provision and many of these daycare businesses operate just below the size requirement.
When you operate a daycare business, you are exposing yourself to huge risk. An accident, no matter that it's unintentional, exposes you to great loss. If you are found guilty or negligent, you can be held personally responsible for all legal fees and judgments. Settling this type of judgment can put a huge burden on you, your business, and your family.
Many companies provide daycare also known as childcare insurance. The biggest component is the liability aspect of the coverage. This liability coverage will protect your business even in the event you are found negligent and responsible for damages or loss.
Many childcare insurance policies offer an abuse and sexual molestation as optional coverage.
The reality of today’s world makes this coverage worth taking a hard look at.
The most important recommendation we can make is that if you operate a daycare in your home or elsewhere, you need to review coverage and risk exposure with a licensed insurance professional.
Do not make the mistake of assuming your homeowner’s policy will cover you. Do not expose yourself, the family home, and peace of mind by ignoring the fact that you are running a business which needs its own insurance coverage.