Specialty Insurance Considerations for the Professional Home Childcare Business
As a home childcare business owner, you love being an important part of children’s lives. You enjoy making the time youngsters spend with you as fun and educational as possible, and you want parents to be confident in you as a trustworthy caregiver.
Toward that end, you’ve gone through the necessary vetting—licensing, registration, and so on—to show that you are a reputable business owner. You’ve had your home inspected for potential hazards and rule compliance, and you’ve secured funding for the materials, furniture and equipment that will make your business attractive to parents and their children.
Knowing you need risk protection, you are looking into general liability and business property insurance. Those policies will go a long way in protecting you and your business from potential financial devastation stemming from a variety of possible claims. But there are other types of claims that, should you expect insurance to cover, may require modification to one of your common policies, or in some cases may require the purchase of a separate insurance policy.
Sexual Abuse and Molestation
If you—or someone working on your behalf, such as an employee or volunteer—are accused of sexual abuse or molestation, traditional general liability insurance may not cover a resulting liability claim. Even if the accusation is proven groundless, without insurance coverage, your business—or you personally—will be financially responsible for legal fees and court costs.
According to West Ben Mutual Insurance Company, costs for such claims can easily reach six figures. Additionally, even a baseless claim can seriously damage your reputation and business. Consider securing adequate insurance coverage for such risks.
According to the U.S. Department of Health and Human Services, in 2015, daycare providers were the perpetrators in over 1,600 investigated cases of child maltreatment, reinforcing the need for strong safeguards and coverage.
Corporal Punishment
Traditional general liability insurance may not cover bodily injury claims stemming from the physical treatment of a child. A signed parental release may help as evidence, but it won’t pay your legal costs. Without proper coverage, your business or personal finances are at risk.
Professional Liability
General liability insurance typically covers bodily injury or property damage, but as a childcare professional, you’re held to a higher standard of care. Incidents such as improper first aid or equipment misuse could trigger claims not covered by general liability insurance.
Professional liability insurance may be required to address claims involving the failure to meet expected care standards, including accidents that worsen due to improper response.
Business Income
Home childcare often costs less than center-based care, but it still generates significant income—averaging $7,761 per year per child, according to babycenter.com. If your home is damaged and your business is paused, how long could you go without income?
Homeowners insurance may repair damage, but it won’t replace lost income. Business income insurance designed for home childcare providers can help you stay afloat financially during disruptions.
Care for Caregivers
Insurance is complex. Trying to secure the right policies for your home childcare business alone can be overwhelming. Fortunately, you don’t have to do it alone. Contact your Trusted Choice® Independent Insurance Agent today to get the coverage that fits your needs.