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Laurel 05:36 AM 07-06-2013
Originally Posted by MarinaVanessa:
I just wanted some thoughts from providers about this. In CA we aren't required to have liability insurance or a bond but if we don't we have to have our clients sign an affidavit that says that they have been informed that we don't have either. This is a requirement of licensing. As of right now we have a choice of whether or not we wish to purchase liability insurance or a bond or not but I know some states don't allow that option. How has that worked out for you and what are your thoughts?

I received an email (because I'm the board of my child care association) from the coordinator of an organization called Family Childcare Policy Advisory Committee (FCCAC) saying that attorneys keep telling them that providers who chose not to purchase liability insurance or bonds are being sued and go to them for help and do not understand why they weren't protected by the Affidavits. They are asking for help if we, as an association, agree that providers would be better off without affidavits. Correct me if I'm wrong but if they remove the option for providers to be able to have affidavits signed (if they don't want to or can't afford liability insurance or bonds) wouldn't that then force providers to have to purchase liability insurance? (I emailed the coordinator back but have yet to hear from him).

Oh and as it turns out the FCCAC gets all of their funding from DCI (a daycare insurance provider) and the coordinator that I was emailing with happens to be the president of DCI. Seems a little fishy to me, as in it seems that the president of a major daycare insurance company is trying to get petition signatures to get rid of the affidavit option with the excuse that it would benefit providers because then they would be covered by insurance and therefore not be unprepared in case of a liability suit.
I think I know what you are saying but not positive.

We are not required to carry insurance OR sign anything informing anyone of whether we do or not. I carry it (with DCI btw) but my provider friend doesn't. Only one client has ever asked if I have insurance or not because she was in the insurance business. She asked me for one of those proof of insurance things (forget what you call them) and I gave her one. That is supplied by DCI (in my case) at no charge to me. It tells the parent I am insured and when my insurance expires but not how much coverage I have.

I'm not sure how providers think that an affidavit that says they do NOT carry insurance protects them in any way. You would think one would have to know that if they sign a paper saying they decline to buy insurance that they are NOT covered if they get sued.

The affidavit seems to be just a way the state has of saying "I choose not to have liability insurance." I don't see why not having the affidavit would make people buy insurance it if they didn't want it. Much like a doctor that I have that doesn't carry malpractice insurance. He says it is cost prohibitive. All his patients know it so they can choose whether to go to him or not.

I think having the affidavit would more likely make a provider tend to buy insurance because they know that the parent knows that they are not carrying it. As it is here, if the parent wants to know they can ask and get proof. If they don't ask then we have no obligation to buy it or tell them we don't have it. An affidavit almost seems like pressure to make providers want to buy it rather than the other way around. I tend to agree with doing away with the affidavits.

It seems like your state's affidavit it just confusing providers (although I'm not sure why) so I don't see a need for it if I am understanding the situation correctly.

Laurel
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