What liability insurance do daycares carry to protect children?
When choosing a daycare, one of the most practical steps you can take is to ask about its insurance coverage. While all licensed daycares are required to...
When choosing a daycare, one of the most practical steps you can take is to ask about its insurance coverage. While all licensed daycares are required to carry certain types of liability insurance to protect the facility and its staff, understanding what these policies actually cover for your child helps you make an informed decision. Here is what you should know about the standard types of liability insurance daycares carry and how they work to protect children.
General Liability Insurance
The most common type is general liability insurance, which covers bodily injury that occurs on the premises. This means if your child trips on a loose rug, falls off playground equipment, or gets injured in a minor accident during the day, this policy typically covers medical expenses, legal fees, and any settlements up to the policy's limit. Most states require licensed daycares to carry a minimum of $1 million in general liability coverage, though many reputable centers carry higher limits, such as $2 million or more. Always ask the director for the specific coverage amount and whether it extends to field trips or outdoor play areas.
Professional Liability Insurance (Errors and Omissions)
This is a separate policy that covers mistakes or oversights in the provider's professional judgment. For example, if a caregiver fails to follow a child's allergy action plan and the child has a reaction, or if a teacher misjudges a child's readiness for a new activity and an injury results, professional liability insurance would help cover legal defense and damages. This type of insurance is especially important for home-based daycares, where the owner may not have the same corporate risk management systems as a large center.
Automobile Liability Insurance
If the daycare transports children in vans or buses for field trips or daily pickups and drop-offs, they must carry commercial automobile liability insurance. Personal auto policies do not cover business-related transport. Ask the director to see proof of this coverage and confirm that it includes all vehicles used for child transport, including any that staff drive for off-site activities.
Workers' Compensation Insurance
While this does not directly protect children, it is critical for their safety. Workers' compensation covers medical costs and lost wages for staff who are injured on the job. Without it, a provider may be less likely to report injuries or may avoid seeking medical care, which could delay a child's own treatment. In many states, daycares with employees must carry workers' comp, so ask if the center is compliant.
What Insurance Does Not Cover
No insurance policy covers every scenario. General liability policies often exclude intentional acts, such as abuse or neglect. For those situations, parents rely on state licensing agencies and child protective services to investigate and take action. Additionally, insurance may not cover injuries that result from a provider's failure to follow state ratio requirements or other licensing rules. This is why verifying the daycare's license and compliance history is just as important as checking their insurance certificates.
How to Verify Coverage
Ask the director for a certificate of insurance, which is a one-page document listing the types of coverage, policy limits, and expiration dates. You can also call the insurance company listed on the certificate to confirm the policy is active. For home daycares, ask the provider if they have a separate business policy or if they are relying on a homeowner's policy with a rider, as homeowners policies often exclude commercial child care. The National Association of Insurance Commissioners recommends that parents request proof of insurance before enrolling a child and keep a copy on file.
What Parents Should Do
When you visit a daycare, include insurance in your list of questions. Ask about the specific types of coverage, the dollar limits per occurrence, and whether the policy includes coverage for abuse and molestation. While insurance is not the only factor in choosing care, it provides a financial safety net for unexpected medical expenses and legal costs. By understanding what liability insurance daycares carry, you can feel more confident that your child will be protected in the event of an accident or injury. Always verify details directly with the provider and your state's licensing agency, as requirements vary by location.