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Do you need insurance for child care services?

Running a daycare or child care center is hard work, mainly because children can be very unpredictable. Whether it’s a child who’s hurt running around outside or an employee who is injured on the job, you’ll want to be protected from whatever unforeseen circumstances are thrown your way. That’s why having insurance for your child care service business can be a helpful step in risk management and reducing your business’s liability from any potential claims, preserving the integrity and longevity of your company.

Does my child care business need insurance?

The answer, simply, is yes. If you’re prepared for everything to go wrong, having insurance for your child care business helps keep everything right.

In the event of troubling lawsuits resulting from child abuse, molestation, or any other problematic situation involving the children under your supervision and care, daycare insurance can help protect your personal assets from being accessible should you ever find yourself entangled in such a legal situation. If your child care operation is ever sued for any other reason or if you run an in-home daycare covered by a homeowners insurance and face a lawsuit pertaining to your daycare activities, daycare insurance will have you covered, especially since there’s a good chance your homeowner’s policy will not cover your daycare activities.

I don’t run a child care business. Do I need liability insurance for when children are in my care?

If you’re not running your own child care business, you typically do not need insurance. However, depending on which state you live in and the number of children you’re caring for in your home, you may be required to obtain a daycare license and business insurance for your home-based daycare. Consult the United States Department of Health and Human Services website for a comprehensive look at all of the states and their respective daycare license requirements, daycare insurance requirements, and home daycare insurance requirements.

Important child care insurance coverages

When protecting your child care business with insurance, you have several options to choose from in a vast insurance landscape. The types of insurance you’ll require will differ from daycare to daycare, depending on the specific needs of your daycare operation. Here’s a look at some of the most popular insurance coverages used for child care businesses:

  • General Liability Insurance: This policy provides coverage arising from third-party claims of property damage, medical expenses, bodily injury, and potential harm to one’s reputation.
  • Property Insurance: Property insurance protects a business’s assets, such as the building your office owns and the equipment and supplies located with the office walls.
  • Professional Liability Insurance: Protects against claims of negligence, mistakes, or omissions resulting from your work or that of your business operation.
  • Abuse and Molestation Liability Coverage: Covers your business if you incur a loss because an employee engaged in child abuse while under your care.
  • Commercial Auto Insurance: This auto liability policy protects your business from lawsuits, injuries, and other damages that arise from accidents in which your business vehicles are involved.
  • Workers’ Compensation Insurance: If your employees are hurt on the job, this policy helps cover medical bills and wage replacement due to their work-related injuries.
  • Accident Insurance: If a covered accident happens at your child care location, accident insurance can help provide injured children and their families with benefits.
  • Umbrella Insurance: In the event your daycare facility is hit with a lawsuit that exceeds the liability limits of your insurance policies, umbrella insurance will help make sure you’re still protected.

How much does child care insurance cost?

The cost of child care insurance ranges from $450 annually for a home child care business to $2,000 for larger commercial child care providers. Depending on what types of insurance you’re buying, the number of policies you’re purchasing, and the coverage you select, you’ll pay a premium that exists somewhere on the annual $450 to $2,000 spectrum. The following is a breakdown of the costs for specific policies that can comprise your child care insurance:

  • General liability insurance cost: The annual premiums range from $450 to $2,000.
  • Professional liability insurance cost: The annual premiums range from $750 to $1,200.
  • Commercial auto insurance cost: The annual premiums range from $1,000 to $4,000.
  • Property insurance cost: The annual premiums range from $500 to $900.

Taking the time to think through the needs of your specific child care operation will help you achieve clarity on the different types of insurance that you should be purchasing. Without thinking through your daycare business needs or talking to an insurance professional, you could be spending more time, money, and resources securing policies that are ultimately not mandatory for your specific daycare’s day-to-day functionality.

How to get a child care insurance quote online

There are many online insurance providers, insurance companies, and insurance carriers you can choose from that can provide you with a business insurance quote. Speaking with an insurance agent is a great way to determine the specific insurance policies that will provide the right coverage for your child care business, so be sure to consult an insurance professional before locking in any coverage on your own.
For a quick, easy, and efficient child care insurance quote, check out Huckleberry.

In just 5 minutes or less, Huckleberry will help you take out the guesswork behind which insurance policies you’ll need and will provide you with a monetary ballpark figure faster than you can change a diaper.

Do you need liability insurance for babysitting?

The good news is if you’re a babysitter, particularly a teenage babysitter, you will not need to carry liability insurance. Teenagers, in particular, are not seen as targets for potential litigation since they typically do not possess many assets. However, the same rule does not apply for nannies since being a professional nanny is considered an occupation and may require you to secure nanny insurance.

How much does child care liability insurance cost?

Several factors affect the amount you’ll pay for child care liability insurance. The main elements are where your daycare is located, the number of children you care for, the number of employees you have (which directly impacts workers comp), the kinds of jobs your employees are tasked with, and even the vehicle you drive.

At Huckleberry, daycare business owners typically pay around $38 per month for liability coverage and around $35 per month for workers’ compensation insurance.

What are the benefits of having child care insurance?

The main benefits of having child care insurance boils down to protecting your personal assets and protecting yourself. By having child care insurance, you’ll not only be complying with most state laws, but you’ll also be preventing any third party from gaining access to your personal assets in the event of a lawsuit.

What is the average cost of child care liability insurance?

While no single policy covers all of the risk associated with running a child care business, most daycare owners purchase general liability insurance and commercial property insurance, which together form a Business Owner’s Policy. A Business Owner’s Policy (BOP) provides general liability insurance and commercial property insurance under one policy at a reduced cost, generally running $750 per year for most daycare centers.

Secure small business insurance for your child care services with Huckleberry

Working with children is one of the most rewarding occupations one can choose as a career. Whether you run a school program, nursery school, daycare, or child care, you must protect yourself with small business insurance through a company like Huckleberry.

Huckleberry can be your one-stop-shop for all of your small business insurance needs. With a custom-tailored insurance policy from Huckleberry, you’ll have peace of mind knowing all aspects of your child care operation are covered and can put more time and energy into being there for your children.


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The content of this page is for general informational purposes only. It should not be relied on as legal, tax, insurance, financial, or other professional advice and is not guaranteed to be accurate, complete, current, reliable, or error-free. See the Terms of Service for further information about this website.

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