Carrying Daycare Insurance vs Not?
I would appreciate any insight on whether to carry daycare insurance or not. I'm sure some of you do and some offer insurance notifications to parents. Why you feel it's beneficial and the average cost, etc. :) Thanks for any help!
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Our state does not legally require us to carry liability insurance. However we MUST notify parents if we don't carry any.
For the small amount that I pay each year, (less then $400) it seems to me that NOT carrying insurance would be silly. Why would you NOT want that added protection....just in case? On that same note, I do let parents know that I will NOT file claims due to stupidity or for people I did not authorize to be on my property. |
I carry daycare insurance. The expense is a business expense so it's tax deductable. I don't necessary advertise or let parents know that I have it, but I wanted to be covered if something did happen while kids were in my care. So far -praise the Lord - I haven't had to actually use it, but it's worth the cost to have the protection.
The cost of my daycare insurance is about $800-900/year. I thought it was kinda high, but had issues getting on other insurances since I also do foster care. |
There is so much liability inherent in what we do there is no way I would ever provide care without the appropriate insurance coverages. As BC said, the small cost is very much worth the peace of mind.
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I pay about $600/year. I just felt that it was necessary, but I'm a huge fan of having insurance on everything. I figured it would take one small accident or malicious accusation to shut me down for good, so the $600 was worth it.
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Originally Posted by Blackcat31: |
Originally Posted by mamac: I do have a form that says: I ________________ understand that ***XX carries liability insurance. I also understand that this policy will ONLY cover my enrolled child on scheduled days of attendance as well as the enrolling parent. NO responsibility will be taken for any unauthorized person who accompanies me onto ******X's property. This includes adults I ask to drop off/pick up my child and/or siblings of the child or anyone else present while picking up or dropping off. The parent must sign and date it. I KNOW that legally, this form may not stop anyone from trying to sue me but it definitely helps let parents know that I don't have insurance just so they can make a few bucks later on....kwim? I had a DCM several years back that was walking backwards down my sidewalk (which is EXTRA wide) as she waved to her child. She was also on her cell. She tripped on her own self and fell. She tried to tell me that my insurance would have to cover her medical expenses and missed days of work as well as pay her for her pain and suffering. I told her that I was NOT filing because SHE wasn't capable of doing more than one thing at a time. It helped that I had it on video too but come on.... seriously?!? I am NOT paying for someone else's stupidity. :rolleyes: |
wow thats crazy!!!!!!... ughhh i hate the idea of fraud claims
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Our state requires it in order to get our license. I hate paying the $530 per year (but it is tax deductible) and I have never had to use it in 22 years but you know I'll be glad to have it if something ever happens.
I don't tell the parents I have insurance and as a matter of fact I have this in my contract: Parents are responsible for all costs involved in emergency medical treatment, including emergency transportation, if required. I will not be held liable for any sickness/injury of either parents/guardian or child while on the premises, or while the child is in the company of the provider during outings. It probably wouldn't hold up anyway but it might discourage some fruitless complaint. |
Originally Posted by Blackcat31: |
Craziness! When I first started out, I had one heck of a time finding a carrier to cover me!
Either companies said you had to be licensed (and the only way to be licensed here is to be a center. Homes are classified as registered) or you could only watch a maximum of 3 kids (definitely not worth it). I did find one that would cover up to 5 kids at one time and it included my own children so there went that. It was a nightmare. It took me several months to get things figured out. We ended up switching homeowners and I have an added clause for self employment/daycare in there. I don't know what the price difference is for that versus just straight homeowners but I'm grateful to have finally found a company that doesn't have all the hoops to jump through. Prior to switching homeowners, I paid right around $480 a year for 2 million dollar liability. |
I definately carry it. It costs between $300-$500 depending on the companies I've used. It is not an easy thing to find though. So many insurance companies dont' want to cover daycares. I do not bother telling my families that I have it. I'm curious as to why you would even bring that up with customers? Does your state require that?
On another insurance note. I don't transport kids in my car, but did get into a conversation with my friend who is also our insurance agent one time. He said not to put the kids in the car because the regular car insurance does NOT cover them if there is an accident because you're doing it while in the scope of the daycare business. He said that you actually have to have a chaffeur license. It's different than taking your kids friends somewhere on the weekend. So many take thier daycare kids in the car and I think that you should check into that further if you have an accident. It's worth a call to your car insurance company to make sure you're covered due to the business. |
Originally Posted by lovemykidstoo: |
Originally Posted by wdmmom: |
Originally Posted by lovemykidstoo: The last thing I would need is to be that one person that gets t-boned at an intersection by an elderly person that winds up injured or worse yet along with the my daycare kids. If anything happened to them while on my watch, my life would be over as I know it! And regardless of the relationships I have with my clients, I have ZERO doubt they'd be filing that lawsuit quicker than white on rice! |
I carry insurance for by business. It is $500 per year and my homeowners policy requires that I carry it. I do not advertise that I carry it... BUT last year I had a long term client's daughter break her arm. I mentioned nothing of myself having insurance and she didnt ask. However, in the doctor's report they said she broke it at daycare and months later HER health insurance company requested my insurance info and my insurance had to pay for it (even though it wasnt my fault).I guess my policy has a "no fault" medical coverage up to $5000.
As far as vehicle insurance... my agent said I do not need a business policy. We go on a field trip 4 times per year. I have a 1 million dollar policy on the vehicle too just in case. |
Where I live we have to carry dc insurance. We arent given a choice. I even have to provide proof every year!
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Thank you so much for all your answers! likethis
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Originally Posted by Blackcat31: |
Originally Posted by lucky: I still go through Adults and Children's Alliance. Just renewed my policy in December and paid $392 for group coverage of $1,000,000/$3,000,000. Maybe the rates changed as of the first of the year? Maybe I am grandfathered in? I don't know.....I've been with them for many years now. |
Originally Posted by Blackcat31: |
Originally Posted by lucky: Wow! That is quite an increase! Guess I will have to budget more for next year... :( Really though, if you think about it, I guess it isn't that bad considering I've heard of providers having to pay a lot more than that. They do offer a payment plan and the $69 payment per month doesn't seem so bad...... although that is a whole lot more money over all....sometimes you just don't have the lump sum laying around so you do what you gotta do I guess. *sigh* Boy, that is a drag though about the rise in cost. :( |
wow everyone seems to pay quite a bit for insurance, I only pay 75 a year through our insurance carrier
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Originally Posted by daycare123: |
Originally Posted by daycare123: We can get coverage for $300,000/$600,000 or $500,000/$1,000,000 and for $1,000,000/$3,000,000. The cost difference between those amounts vary greatly. Add in the difference between regular family care and group family care and the prices are all different. |
My insurance broker is a friend of mine that used to work for my old insurance company. He left and went out on his own and, knowing what I do for a living, He set up my homeowners with a $1 million umbrella coverage. He was shocked that my previous agent had me so underinsured (in all aspects) even tho not only did the guy know what I do for a living but actually came to my home to have me sign the paperwork!
I am legally unlicensed, so my broker said the umbrella policy would be sufficient. I do NOT take the kids into my car EVER so I don't have to pay more there! |
Originally Posted by lovemykidstoo: |
Originally Posted by MarinaVanessa: |
When you consider the Lawsuit happy world we live in and that desperate people do desperate things (poor economy leads to desperate people), I personally would not operate a Child Care facility in home or not, without it. I am an insurance professional and do not say this to make a sale but from a standpoint of being a Self employed individual who can not afford to pay for an attorney out of pocket much less settle up on a $500,000 lawsuit and remain in business. Can You?. Please remember this very important component to a Liability policy, Your coverage pays for the defense costs irregardless if you are found guilty or not. Please feel free to contact me if you are in need of more info. Thank you.
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Only you can decide if the insurance is worth it or not, but I will tell you that at $137 per year, I didn't feel like I could afford NOT to take it. Prices will vary according to your situation and they can vary widely from company to company. Start with an agent you already do business with, or shop for a mutual company to give you a quote for daycare insurance, homeowner's, and auto bundled for a discount.
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I had a rider on my homeowner's policy, and it was $80. BUT...it will only cover actual medical expenses (so no lawyer if you are falsely accused of molesting a child, for example), and will not defend you in a court of law for those medical claims. They will not cover anything of gross negligence (example, if a child gets injured due to a recalled item, or even accidental food poisioning). It means it is 100% provider's fault & is the claim will be denied. In civil court, you absolutely would be liable for those expenses, though.
A professional daycare policy, with umbrella coverage would cost me $500-ish. Really do your homework though...the company I used for auto, home, & daycare(the only company that did a rider on homeowners in my state)...I could have gotten way cheaper auto & home that would have saved me about $900/yr in premiums(without the daycare rider),,,still a better deal, even with paying $500 for daycare policy, which provides real coverage, not just the bare minimum. |
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