As it has become increasingly common for both parents to pursue careers outside of the home, the demand for child care services has never been greater.
When it comes to choosing daycares, preschools or nannies, finding the best fit usually boils down to which child care provider offers the best services in terms of education, play time, snacks and even second language opportunities. However, how often is the provider’s insurance included in this list? Few parents ever even ask about child care providers’ insurance — but we should be.
The statistics below* are examples of childcare accident claims involving in-home child care businesses:
- A day care child pulled down a bottle warmer on top of another child: $525,000.
- A three and a half month old child died of SIDS: $435,000.
- An older child dropped an infant on the floor: $300,000.
- A bookshelf fell on a child: $273,000.
- A provider was accused of negligence in the death of a child: $240,000.
- A two-year old was poisoned with E. Coli: $130,000.
- A parent alleged that the provider’s son assaulted their daughter: $118,000.
- A child fell and broke her leg: $90,000.
- A child fell off monkey bars: $75,000.
Quite a pricey list, right? What if these day care providers decided not to insure their businesses? It’s more common than you may think. Most homeowners insurance policies exclude business operations, AND home-based childcare providers are not required by any entity to have liability insurance. If choosing an in-home child care facility, check to make sure the provider is insured properly or you could be putting yourself and the provider at risk of battling out who will be stuck with a large bill.
In the case of a child care facility or preschool that has its own venue, the Department of Health and Human Services (DHHS), does require the provider to carry business liability insurance. However, this does not guarantee that all accidents will be covered by the provider if the provider was not guilty of negligence and the accident was caused by normal childhood play.
There is always risk associated with childcare, especially as the opportunity for injury or damage naturally increases with the growth of curious little minds. While some of these risks cannot be avoided, the best way to protect yourself, your children and your business is to make sure you and your provider have the liability insurance in place to protect you in case of an accident.
Author: Ashley Brasseaux
Ashley has been a part of the IB team from the beginning. She’s passionate about protecting consumers by making sure businesses have insurance.