Running this type of small company can be very rewarding but there are considerable risks involved.
Home daycare insurance should be one of the first things you consider before you open your small business. It protects you financially in the case that something should go unexpectedly wrong.
In this business, your main responsibility beyond entertaining children is to keep them safe.
Despite your best efforts to make sure the unexpected does not happen, it’s also your responsibility to protect yourself in case it does. The right home daycare insurance can protect your business from ruin following an unfortunate event.
This type of coverage includes a number of different policies which will depend on what your daycare offers in terms of services. Part of that coverage may be able to be added as an extension of your existing homeowners insurance. That said, it’s important to remember that the homeowners insurance policy that you already have will not cover everything you need when you operate a business of this nature.
Homeowners policies can be a jumping off point for home daycare insurance, but you will need more.
To understand exactly what your homeowners insurance policy covers, it’s a good idea to speak with your agent or a representative from your insurer. That way, you’ll know where you’re starting and what can be added to protect you.
The majority of states will require a home daycare business to cover an additional liability policy in order to meet minimum licensing requirements. It’s also important to remember that many states – and many insurance companies – have a maximum limit to the number of children that can be watched at any given time by a home business of this sort. On average, there is usually a maximum of about 6 children in the house at one time.
Extending your homeowners coverage to include your home daycare business will likely require you to extend your liability limits and to add some general small business coverage. You may also want to consider a commercial policy for your vehicle if you ever intend to take any of the children somewhere in your car. Your personal policy will not cover you if you are driving for business reasons. Additional types of policy to consider include: general liability, professional liability, commercial auto liability, corporal 
punishment liability, abuse and molestation liability, or possibly umbrella insurance, depending on your business size and risks.
