Finding good daycare is an enormous concern for families with children under the age of 5. Compared to the previous generation there is an extremely large amount of families who now have both parents in the work force. ‘According to the group Child Care Aware, about 11 million children under age 5 spend an average of 35 hours a week in child care’. Because of this fact, the day care industry has exploded. With this explosion has come many new businesses needing help with their liability needs. There are many things that can put a day care center at risk. Here is a list of the 5 most common coverages a day care center should secure.
✓ General Liability Insurance
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance
✓ Business Income with Extra Expense
✓ Commercial Crime / Employee Dishonesty
General Liability Insurance
GL Insurance is required by law in most states. Many business owners unfortunately think this coverage is all encompassing and it is not. It is the baseline for coverage for your daycare business. It will cover your businesses liability for normal bodily injuries from things like slips and falls. It can also cover property damage that occurs to third parties on your property.
Hired and Non-Owned Auto Coverage
If your business owns and uses vehicles as a part of your business you will need commercial auto coverage, but if you have employees who use their personal vehicle or rented cars you will need to secure Hired and Non-Owned Auto Coverage. This will cover the liability your business faces as a result of any accidents you or your employees are in while on company time.
Workers’ Compensation Insurance
Workers Comp is another coverage that is required by law in nearly every state in the country. It is similar to General Liability except it deals with bodily injuries to your employees. When an employee is injured on the because of normal business practices work comp coverage will cover a portion of their salary and any medical costs as a result of the injury. Each state has their own laws governing how to administer workers’ compensation coverage. For this reason, it is important for you and a key employee to know the process to properly help your injured employee get the care they need and get back on the job quickly. Your carrier can help you with this both before you have an injured employee and when a claim occurs.
Business Income with Extra Expense Coverage
Business Income with Extra Expense Coverage is a type of commercial property insurance that covers the loss of income suffered when damage is caused to the property by a covered loss and it causes a slowdown or suspension of business operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property and may extend to apply to loss suffered after completion of repairs for a specified number of days. Expense Coverage is an additional type of commercial property insurance that pays for additional costs in excess of normal operating expenses. These are normally expenses that an organization incurs to continue operations while its property is being repaired or replaced because of damage from a covered loss. Extra expense coverage can be purchased in addition to or instead of business income coverage, depending on the needs of the organization.
Commercial Crime / Employee Dishonesty
Commercial Crime Insurance is a type of insurance that is designed to help businesses deal with crimes committed by their employees. This type of coverage typically covers several different types of crimes, such as: employee dishonesty; forgery or alteration; computer fraud; funds transfer fraud; kidnap, ransom, extortion; and money orders and counterfeit money coverage. Employee Dishonesty Insurance is an additional coverage for employee theft of money, securities, or property. This type of coverage is written with a per loss limit, a per employee limit, or a per position limit. This is important to speak with your agent about what types of activities your employees partake in. They can help you determine what type and how much risk you actually face.
