How to Choose the Best Home Daycare Insurance

So you’ve decided to open your own home daycare business. Congratulations! Caring for little ones is incredibly rewarding work. But before the first eager student arrives on your doorstep, you need to make sure you have proper insurance coverage in place. As a daycare provider, there are certain liabilities you face, and the right insurance can help protect you if the worst were to happen. Choosing insurance for a home daycare can feel overwhelming with so many options out there.

But don’t worry, we’re here to walk you through everything you need to know to find the best, most affordable coverage for your new business. By the end of this, you’ll feel confident you have the insurance you need to open your doors. Kids can’t wait to learn and play in your care, so let’s get started!

Why You Need Home Daycare Insurance

As a home daycare provider, your business faces risks every day. Accidents happen, property gets damaged, and parents can file lawsuits. That’s why home daycare insurance is so important. It protects you and your business.

You’ll want to get general liability insurance, which covers things like injuries, property damage, and legal expenses if parents file a lawsuit. Say a child trips and breaks their arm at your daycare – general liability insurance helps pay for their medical bills and any legal fees.

Property insurance is also key. It covers damage to your home, belongings, and any equipment used for your daycare business in the event of fire, theft, or natural disaster. Without it, you’d be on the hook for all costs out of pocket.

How Much Coverage Do You Need for Your Home Daycare?

Liability Coverage

To protect yourself and your business, liability insurance is a must. This covers expenses resulting from injuries, accidents, or property damage at your daycare. For home daycares, a minimum of $300,000 in coverage is recommended, but many daycares opt for $500,000 or even $1 million in coverage.

Higher coverage means higher premiums, so you’ll need to find the right balance of coverage and cost for your needs. Consider your daycare’s size, number of children, activities offered, and your own level of risk tolerance.

Property Coverage

Property insurance protects the physical space and assets of your daycare like furnishings, equipment, toys, and other supplies. It covers damage or loss from events like fires, storms, theft, or vandalism. For a home daycare, a policy that covers at least $30,000 to $50,000 in property is suggested. Make sure any policy covers the full replacement cost of major equipment and a reasonable level of coverage for smaller items.

What to Look for in a Home Daycare Insurance Policy

Coverage types

When choosing a home daycare insurance policy, look at the types of coverage offered. The two main types are general liability and property coverage. General liability protects against third-party bodily injury and property damage claims. This is important for any business where people other than employees can be injured. Property coverage protects the physical building and contents in the event of damage from events like fire, theft, or weather.

Limits and deductibles

Pay attention to the coverage limits and deductibles offered. Higher limits and lower deductibles typically mean higher premiums. Find a balance of coverage and cost that fits your needs and budget. For a home daycare, at least $1 million in general liability coverage is recommended. A $500 to $1,000 deductible for property coverage is common.

Additional coverages

Look for additional coverages that may be important for your home daycare like abuse and molestation coverage, business income coverage, and coverage for equipment like playground structures. Abuse and molestation coverage protects against claims arising from alleged abuse. Business income coverage provides reimbursement if you have to close temporarily due to an insured event. Equipment coverage protects expensive items on your premises.


Ask about any discounts offered such as a multi-policy discount if you bundle with homeowner’s or auto insurance. You may also get a discount for installing safety measures like fire extinguishers, smoke detectors or a security alarm system. A good claims history can also qualify you for lower premiums over time.

Customer service

Finally, consider the insurance company’s customer service. You want a company that specializes in business or commercial insurance with experience insuring home daycares or childcare centers. They should be able to provide guidance on appropriate coverage and limits for your operation. In the event of a claim, prompt and efficient claims handling is important to getting your daycare back up and running.

Choosing a home daycare insurance policy is an important decision. Evaluating the factors above will help ensure you find a policy tailored to meet the unique needs of your daycare business. Protecting your business, property, and customers should provide peace of mind so you can focus on what matters most – the children in your care.


So there you have it—some key things to consider as you shop for home daycare insurance. Remember, the lowest premium isn’t always the best deal if the coverage is lacking. Do your homework, compare quotes from different providers, and make sure you understand exactly what’s covered and what’s not. Your daycare business is hugely important, so protecting it properly with the right insurance is well worth the investment. At the end of the day, you want to find a policy that gives you peace of mind so you can focus on what really matters: providing a safe, nurturing, and educational environment for the little ones in your care.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top