If you run a childcare facility or intend to open its doors soon, getting the right business insurance policy is mandatory. As the child care provider, you don't just insure the facility against losses but also third-party claims. For this reason, you should identify a reputable insurance company that usually specialises in childcare insurance policies.
Whether you run your childcare business from a local facility or your home, some childcare risks -- molestation, negligent staffs, food poisoning, falling objects, faulty toys and slips and falls -- may happen anytime. If your childcare business isn't properly insured, your business reputation would be tainted quickly when such risks occur. What should the business insurance you take protect your childcare business from?
Omissions and Boo-Boos Committed
When a parent sues a childcare provider for the injuries sustained, the 'injuries' here don't always mean dislocations, broken bones or wounded tissues. Injuries could also be the childcare services the childcare provider promised to offer within a specified period but failed to provide. For instance, if the childcare provider promised the parents that every child would know how to write their names after 18 months, they may be sued if this doesn't happen. Most parents take such injuries or errors seriously since they could deny their children a chance to join a prestigious school. However, if you have liability insurance that covers errors and omissions, such suits or claims won't bring down your name or business.
The Vehicles the Childcare Business Owns
It's risky to run a childcare business without auto liability insurance to cover your business vehicles or those used on behalf of the facility. Although you probably took a personal auto policy, it may not cover all auto claims in your childcare business. Unlike the commercial auto insurance, a personal auto policy won't offer sufficient limits for the childcare business. If your staff members use their vehicles to carry children to and from your childcare business, don't just go for an auto liability policy -- get a 'non-owned' auto insurance policy.
Molested and Physically Abused Children
If it's alleged that a child was sexually abused or physically molested in your childcare business, you could be sued for it. Although most molestation and physical abuse claims in childcare facilities are associated with the employees or other staffs, other parties -- family members, visitors and volunteers -- could also contribute to this. The plaintiff may claim that the childcare business owner didn't properly vet the suspected volunteer or employee when hiring them. If you took an insurance policy that doesn't cover molestation and abuse, you may face it rough in court when an abuse or molestation claim arises.
Take your time to find out if the insurance company provides all the necessary insurance policies you need to run a secure childcare business. Policy rules and laws vary from one business insurance provider to another. However, don't go for the cheapest policies before you know if they would protect you from the risks experienced in the childcare business. Other insurance policies you could take for your childcare business include umbrella liability, medical payments, workers' compensation and commercial property policies.