Daycares provide necessary services to help parents who need to work. The business owner ensures that the facility is safe and their workers are screened to prevent liabilities.
When setting up a daycare, the business owner needs to obtain adequate coverage to protect against liabilities and legal issues. The coverage protects their property and assets used for the business, too. Understanding what insurance policies are available helps the business owner choose the best insurance to protect them fully.
Daycare Liability Insurance
Daycare liability insurance is necessary for the facility to cover possible liabilities that could emerge at any time. Accidents are common liabilities to anticipate in a daycare. Children play and could fall and sustain injuries, and the owner must mitigate risks related to accidents involving the children.
Reviewing the liabilities that could emerge in a daycare helps them determine what type of coverage they need to protect the business. Liability coverage offers funds to pay for medical treatment and provide compensation when necessary. Daycare owners can contact an insurer when they need daycare insurance and get more information now.
Property Coverage for the Facility
Property insurance protects the facility and provides coverage for damage. It covers the cost of repairs or the total replacement of the property. Covered events include fires, natural disasters, and criminal acts such as vandalism.
The property owner files a claim to get funds for property repairs and receives the market value of the property if it is a total loss.
The property insurance may provide additional liability coverage for the facility, too. If the daycare is operated through a residential property, the owner will need to get commercial coverage, since they are operating a business at the property.
Comparing the insurance policies shows the business owner what coverage they need to protect against liabilities and financial losses.
Corporal Punishment Liability Coverage
Corporal punishment liability coverage is necessary for a daycare in case a worker is accused of using corporal punishment. When completing forms for the daycare, the parents must indicate if corporal punishment can be used to discipline their child.
If the forms indicate that the parent doesn’t give permission, the worker could face a lawsuit if they use corporal punishment to discipline the child. The insurance coverage provides funds to pay a lawsuit award if the daycare is sued by a parent, and it helps the owner avoid a shutdown of their company.
General Liability Coverage
General liability coverage provides coverage for accidents and issues that could arise and cause injuries. In a daycare facility, the business owner must assess the property for hazards on an ongoing basis. If a child is injured because of a hazard, the daycare owner could be sued for a premise’s liability.
They must also ensure that their parking lot doesn’t have damage that could lead to a slip and fall injury for the parents, too. It’s necessary for the business owner to secure adequate liability coverage to prevent financial losses because of accidents.
Abuse and Molestation Liability Coverage
Allegations of abuse or molestation are a possibility when running a daycare. Allegations against the daycare could lead to damage to the company’s reputation and cause business loss. Even if the worker is never charged for the allegations, it could present a major issue and financial losses for the daycare.
Typically, the parent will file criminal charges against the worker, and a criminal case begins. However, the parents could also file a civil lawsuit against the daycare. If the allegations are never proven, it could cause a serious issue for the daycare. The coverage provides funds for legal fees and management of the cases.
Commercial Auto Coverage
Commercial auto coverage provides protection for all commercial vehicles and any accidents caused by the drivers. The insurance provides coverage for medical treatment and auto repair costs for the accident victim. It will also provide coverage for the commercial vehicle and replace it or repair it as needed.
The daycare will need maximum coverage if they transport the children anywhere that will cover any injuries sustained in an auto accident happens. Business owners should review all coverage levels and ensure that they have adequate coverage for all children who may ride in the vehicle for any reason.
The daycare owner must obtain standard auto liability coverage if they want to operate the vehicle for any reason other than business purposes. The coverage is available if the owner has an accident after business hours. It’s a great option for protecting the owner against liabilities, and they could get additional coverage if the vehicle is financed.
Worker’s Compensation Coverage
Worker’s compensation is a must for any daycare that hires more than one worker. It covers any accidents that cause work-related injuries. The business owner must provide a claim if a worker is injured on the job.
The insurance pays for all injuries and medical treatment required for the injuries. It will also provide replacement wages for the workers if they cannot go back to work immediately.
The workers must adhere to the company’s safety policies. The ER must conduct a drug and alcohol screening to determine if the worker was using while at work. The claims adjuster reviews the accident and determines if the worker played any role in their accident.
If the worker caused their injuries, they will not receive any benefits or coverage for their medical treatment. If the worker is eligible, the insurance provides immediate coverage and provides a starting date for their wage replacement benefits.
Daycare facilities provide necessary services for busy parents and ensure the safety of their children. The facility owner must mitigate risks each day and ensure that children do not sustain injuries.
Insurance policies provide them with adequate protection for their property and against liabilities. General liability coverage and daycare insurance could provide the owner with extra coverage against lawsuits and issues related to accidents.
Commercial auto coverage is necessary to protect the owner against financial losses if an auto accident happened. Reviewing all the insurance policies shows the business owner what coverage is available to them.
