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Commercial & Residential
Child Care Business Insurance

If you are own or run a child care business (either in a commercial building or in your home), there are certain questions you should resolve to make sure that you are adequately protected in the event of a customer's claim.

 For example, here are some questions to ask:

  • Does your Homeowner's carrier know that there is a child care center in your home? Is your business exposure covered or excluded?
  • Are the limits of insurance adequate? Are the limits enough to protect your business and personal assets?
  • Are the limits of insurance shared between your business and your personal exposure?
  • Will the loss experience from the business exposure jeopardize your personal liability rates and coverage?
  • Is the policy providing specialized coverage including Child Molestation & Abuse and Professional coverage?
  • Is there Defense Cost Reimbursement coverage for if you are accused of abuse?
  • Does your homeowner's policy provide no fault Medical Payments coverage for accidents covering children in your care?


Child Molestation & Abuse Coverage

Why settle for limiting insurance forms when you have access to the broadest coverage in the industry? Statistics show that over 90 percent of molestation and abuse allegations against child care providers are false! However, providers spend thousands of dollars defending their good names and clearing their reputations.

Commercial Child Care Insurance Coverage Features Include:

  • Limits up to $1,000,000/$1,000,000 are available
  • No deductible
  • Coverage applies off premises (including field trips)
  • Broadened definition includes not just sexual, but corporal punishment/physical and mental abuse
  • Coverage is triggered by acts of any individual on the premises
  • Employees (including directors and assistants) are included; this coverage protects the center’s employees!
  • Unlimited defense costs available residential Coverage Features include:
  • Limits up to $100,000/$300,000 are available
  • No deductible
  • Coverage applies off premises (including field trips)
  • Broadened definition includes not just sexual, but corporal punishment/physical and mental abuse
  • Coverage is triggered by acts of employees defense cost reimbursement:
  • Filed lawsuits will extend beyond the vicarious liability of the center to name the actual individual accused of the act
  • In the event that criminal and/or civil charges are filed against individuals, we offer a unique coverage that will reimburse the alleged perpetrator for their defense costs once they are acquitted or charges are dropped
  • Employees including directors and assistants are included, and this coverage protects the center’s employees!


Why do Child Care Centers need to purchase insurance?

  • A child suffers bodily injury while on your playground equipment
  • The parent of a child enrolled in your program makes a false charge of abuse or molestation against you
  • One of your employees / volunteers trips and spills hot soup onto a child
  • Emotional distress to the parent of a child enrolled in your program caused when you did not obtain a permission slip to take them on a field trip


Why should you choose our Child Care Product?

The following are important features; make sure you have them all: 

  • Professional Liability automatically provided at the General Liability limit for no additional charge
  • No liability deductibles
  • Child Molestation & Abuse limits available up to General Liability limit - Definition includes Corporal Punishment
  • Employees including Directors and Assistant Directors are included as Insured under Child Molestation and Abuse Coverage.
  • Child Molestation and Abuse coverage applies off premise
  • Child Molestation and Abuse Defense Cost coverage available outside the limit of Liability
  • Child Molestation and abuse coverage applies to the act of any individual
  • Defense Cost reimbursement available for false allegations of Child Molestation or Abuse against the facility owner operators, and employees
  • Medical Payments coverage automatically provided for no additional charge that includes coverage for enrolled students
  • Hired and Non-owned Auto Liability coverage available
  • Expanded definition of Bodily Injury to include sickness or disease caused by mental anguish or emotional distress


Examples of Insurance Claims for Child Care Businesses

  • General Liability: Tyler, a student, fell off the swing at the childcare playground. His front two teeth were knocked out. He incurred $2,000 in dental work. Tyler’s mother filed a claim for the dental expenses and an additional $5,000 alleging emotional distress.
  • Professional Liability: Sally’s mother claims that Child Care center failed to render professional service in the administration of their education program. Sally had failed to identify enough colors and shapes to pass an entrance exam to a private school. Sally’s parents are suing for the cost to hire a special tutor and a refund of their tuition paid to Small World Child Care.
  • Child Abuse or Molestation: A disgruntled parent claims her child had bruises on his arm. When asked, her child stated his teacher hurt him. Charges filed include improper hiring, improper training of employees, and failure to protect the child from harm. Attorneys are hired to defend the school against these charges. The case is dismissed after an investigation fails to prove any abuse occurred. The center’s defense costs amount to $25,000.
  • Hired and Non-owned Auto Coverage: The owner Beth asked Molly an employee of the Care Center, to run to the store for craft supplies for the holiday project. While en route to the store Molly rear-ends another car at a stop sign causing $4000 worth of property damage and $9,000 in bodily injury to the other driver and automobile.
  • Certain civil/ Criminal Defense Cost Reimbursement*: Doug, a student, stated to his mother that an employee of ABC Child Care, touched him inappropriately. Doug’s mother then filed a report with the local police who then filed criminal charges against the employee. The employee claimed her innocence and while defending her good name and reputation incurred $30,000 in criminal defense costs. The charges were later dropped, when Doug admitted that he had fabricated the story to get back at Lauren for not allowing him to go outside when it was raining. She was reimbursed for all of her defense costs.
  • Medical Payments: Michael and John, both students at a local childcare center, were playing with matchbox cars when they both decided that they wanted to play with the red sports car. Michael, determined to play with his favorite car, pushed John causing scrapes and abrasions on his arm. After receiving a phone call from the center, John’s mother picked John up and took him to the hospital. The injuries resulted in a $2,000 bill for services provided by the hospital.



This document does not amend, extend or alter the coverage afforded by the Policy. For a complete understanding of any insurance you purchase, you must first read your Policy, Declaration Page and any Endorsements and discuss them with your Broker. A specimen policy is available from an Agent of the Company. Your actual Policy Conditions may be amended by Endorsement or affected by State Laws.



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