Operating a day care center is a rewarding experience as you get a chance to take care of children from a young age and watch them learn and grow. However, like many small businesses, there are some risks involved that you should be aware of in order to offer your day care center the proper insurance coverage. You are in the business of caring for other people’s children and it is your job to keep them happy and safe while they are in your daycare, but accidents and natural disasters can occur that are out of your control. Child care services insurance offers you the chance to protect your center’s dwelling, as well as financial assets from litigations and liabilities associated with these potential hazards.
Types of Day Care Center Insurance Coverage
A variety of types of insurance coverage are available under child care services insurance, which range from general liability to worker’s compensation. Day care center insurance coverage offers your business a wide range of policies for optimum insurance coverage.
One of the most basic types of day care center insurance coverage is general liability insurance, which covers bodily injury and property damage. In the case of an accident of happening in your day care center, general liability will cover these legal claims and protect your business and financial assets. For instance, if a child is injured during an accident that occurred in your day care center facility, you can be held accountable for it. Accidents can’t be avoided, but the financial consequences can be protected with general liability coverage.
Business Owners Policy (BOP)
A business owners policy, also known as a BOP, is an essential type of insurance coverage for day care centers. As a package policy, the BOP has combined coverages including general liability, property coverage, and asset protection. If a natural disaster occurs that damages your day care center dwelling or property that is inside or outside your building, the cost to repair or replace these items will be covered by the BOP. The BOP also offers financial assistance in the case of business property breaking down and needing repairs such as your washing machine or dishwasher; these items are used in your day care center and are therefore covered. Assets such as business files, paperwork, and other equipment like your business computer may also be covered by the BOP.
If you have a vehicle that is used for business-related tasks, such as picking up art supplies for the day care center, dropping kids off at school, or taking them on a field trip to the library, you will need business auto insurance. Also called commercial auto insurance, business auto offers coverage for your business vehicle in the case of an accident, as well as any persons in the vehicle at the time. If an accident has occurred while picking up the children from school, and the van is side-swiped, the repairs of that accident will be covered. If a child gets an injury from a vehicle accident, the cost of medical treatment is also going to be covered.
The law requires small businesses, like day care centers, to obtain worker’s compensation insurance to protect your employees in the case of an occupational injury or illness. If you have employees working in your day care center, and they are injured during work, such as from play equipment malfunctioning and causing them an injury, the medical expenses will be covered by worker’s compensation. If the injury caused the employee to miss work, they will also have salary benefits from the worker’s compensation insurance.
The last thing you want to happen while children are in your care is for an accident, fire, floor, or natural disaster to occur, but sometimes these things occur despite the best preventative measures. By protecting your business, assets, and employees with proper commercial day care center insurance, you are giving your hard work — and precious cargo — the coverage it needs.