Best Insurance for Childcare Providers

Contributor, Benzinga

Did you know most of our readers choose The Hartford for their professional and business insurance needs?

A childcare business can be a gratifying endeavor. Childcare providers nurture young ones and witness the growth and learning of the kids in their care every day. 

It’s important to keep both your staff and the children safe and protected. Our guide to childcare insurance will help you understand your options and find the best carriers for your small business.

Best Childcare Insurance

Insurance products designed for childcare providers are available through specialty carriers and online insurance sellers. Whether you operate your childcare business from a local facility or your home, you’ll need different types of insurance.

If you aren’t sure about the insurance products suitable for your business, start with a few quotes from our recommended insurance carriers below.

Next Business Insurance Next Business Insurance
get started securely through Next Business Insurance’s website
Same Day Coverage?
N/A
Online Application?
Yes
1 Minute Review

NEXT is a business insurance provider dedicated to helping small business owners find affordable, customized policies that fit the unique risks of their industry. NEXT offers a complete suite of the most common business insurance protections that you might need, and you can apply for a policy entirely online.

Getting insurance through NEXT takes less than 10 minutes — simply choose your business type, answer a few questions about your experience and history and purchase coverage. You can adjust your policies and coverage limits to balance cost and protections with just a few clicks. 

Though NEXT’s 100% online model might not be right for everyone, it can be a strong contender for digital natives in search of affordable insurance. 

Best For
  • Small business owners looking for quick, affordable coverage available online
Pros
  • Apply for a policy in as little as 10 minutes
  • Policies customized to industry type and need
  • Discounts available on bundled policies
Cons
  • No option for paper policy application
  • May need to connect with a representative if your occupation isn’t listed
coverwallet coverwallet
get started securely through coverwallet’s website
Same Day Coverage?
No
Online Application?
Yes
1 Minute Review

Shopping for business insurance can be a tedious process. It takes time to collect and review quotes and coverage unless you visit CoverWallet. CoverWallet, an Aon company, makes it easy to get quotes from multiple insurance providers.

With CoverWallet, you can start by talking with an insurance advisor or start directly with quotes. You can get quotes from multiple reputable insurers, including Hiscox, Chubb and Progressive. Choose from a wide range of coverage options to protect every area of your business, including workers’ compensation, general liability and commercial property insurance.

Once you decide on your insurance coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to send copies of your insurance certificates when needed, file claims and pay premiums. It keeps your policies organized and allows you to reach out to an expert at any time.

CoverWallet also offers extensive educational resources. You can review its recommended coverage by industry. You can also dig into more specific information based on your industry, location, number of employees and annual revenue.

The one drawback to the CoverWallet is that it doesn’t have a mobile app. You can still access the site through your mobile browser and you can call any time for assistance. Overall, CoverWallet makes it easy to shop for and buy business insurance, and it’s an excellent fit for small businesses and the self-employed.

Best For
  • Self-employed
  • Start ups
  • Small to medium businesses
Pros
  • Can get multiple quotes easily
  • Can learn about recommended insurance for your industry
  • Offers many types of insurance
Cons
  • No mobile app
B2Z B2Z
Get Started securely through B2Z’s website
Disclosure: B2Z is available in the following states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, lowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin.
Same Day Coverage?
N/A
Online Application?
Yes
1 Minute Review

Tired of buying insurance for your small business the old-fashioned way? Forget about waiting around for that insurance agent to call you back. Now, B2Z has launched a full suite of insurance policies, including cyber insurance, workers’ compensation, professional liability and business owner’s policies (BOP). The B2Z platform uses AI to create personalized coverage just for you—all in as little as 5 minutes.

B2Z offers small business insurance in a language everyone understands. Easy applications, mobile claims and digital quotes are just a few of the ways B2Z makes buying insurance for your business fast and easy. Affordable, too.

Best For
  • One-Stop-Shop Coverage
  • Shopping Online
  • Hassle-Free Cancelation for Old Policy
Pros
  • User-friendly online portal
  • Multiple products
  • Digitally-based
  • AI-driven
  • Data sourcing
Cons
  • No phone call needed
  • No brick and mortar
  • Too fast-paced for some
The Hartford The Hartford
get started Call Now securely through The Hartford’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

The Hartford is a leader in casualty and property insurance. It brings more than 200 years of experience in developing and providing insurance products. The company uses a quote-based pricing scheme to offer insurance in 2 main segments: commercial and personal lines. 

Its commercial segment serves over 1 million small businesses. The personal segment offers only nationally-endorsed home and auto insurance through the AARP® Insurance Program. The Hartford sells its products mainly through a network of independent brokers and agents. 

The company is also a 12-time honoree for the world’s most ethical companies according to The Ethisphere Institute. It delivers the name recognition and reputation of an experienced insurance carrier.

Best For
  • Those looking for an experienced insurance provider
  • Multiple coverage options with 1 carrier
Pros
  • More than 200 years of insurance experience
  • Provides online quotes
  • Has a solid financial rating
  • Offers a wide range of commercial insurance products
Cons
  • Pricing is entirely quote-based
Simply Business Simply Business
Get started securely through Simply Business’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

When you’re a small business owner, you have a lot on your plate. Finding the best insurance policies for your business probably isn’t on the top of your list. Simply Business makes it easy to get the coverage you need. It’s a digital small business insurance agency, which means it offers coverage from multiple insurance carriers. 

With Simply Business you can compare quotes and coverage options from multiple companies to determine what’s best for you. Simply Business works with top providers like Hiscox, Travelers and Axis Insurance Company. 

You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away. 

Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography. 

While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance. 

If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break. 

Best For
  • Small business owners
  • Sole proprietors
Pros
  • Quick quote process
  • Licensed agents to assist you
  • Can choose from top insurance providers
Cons
  • No mobile app
Thimble Business Insurance Thimble Business Insurance
get started securely through Thimble Business Insurance’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

It’s not often that you see something new in the insurance space but Thimble has come up with something unique — flexible small business insurance. You can buy liability insurance policies by the month, the day or even by the hour. Even better, you can apply in under 60 seconds. In this Thimble review, we’ll dive into how it works and how it can benefit your business. 

Best For
  • Handymen, landscapers and contractors
  • Self-employed individuals
  • Seasonal business owners
  • Freelancers who do multiple types of work
Pros
  • Flexible general liability and professional liability policy options
  • Fast application process
  • Ability to pause monthly coverage
  • High-quality mobile apps
Cons
  • No 24/7 Customer Support

Types of Childcare Insurance

Daycare providers need various types of insurance to protect their business. Here are some of the most sought-after daycare business insurance options:

General Liability Insurance

General liability insurance for your daycare business covers the costs of 3rd party claims for property damage or bodily injury. Liability insurance also protects your small business from claims of slander and advertising injury. 

The main areas of general liability insurance coverage include:

  • Medical payments. Anyone who is physically injured in your business premises, irrespective of negligence, is entitled to medical bill payment. 3rd parties may also receive settlement for more serious injuries and incidents causing death. Slip-and-fall cases are common sources of bodily injury claims.
  • Property damage. A general liability policy covers any incidents resulting in property damage for 3rd parties like customers or bystanders. The occurrence of property damage must not be as a result of negligence. Your business could be at fault but not negligent.
  • Advertising injury. Advertising injury means ruining someone’s reputation through slander or libel. You risk a personal injury claim if your business or its employees make statements indicating that another person is irreputable. A general liability insurance policy protects you from claims made from social media posts or oral comments.

Commercial Property Insurance

Commercial property insurance covers your daycare’s assets, including your building, furniture, equipment and inventory. You may insure your property for its replacement cost or actual cash value. If you make a claim, replacement cost coverage will pay the repair costs up to the covered limit while actual cash value will deduct depreciation from your claim payout.

Commercial Auto Insurance

Your childcare facility also needs to obtain auto insurance to protect against claims resulting from accidents involving cars used by the business. Your personal car insurance policy won’t pay for claims made against your business. Daycare businesses are required to carry at least liability for damage caused to others. 

Additional coverage options may include:

  • Collision for damage to your car after it’s hit by another vehicle.
  • Comprehensive for any damages to your vehicles resulting from other incidents other than a collision.
  • Medical payments cover medical bills sustained by you and your passengers.
  • Uninsured and underinsured motorist covers all costs if the driver at fault doesn’t carry insurance or has inadequate coverage.

You’ll need non-owned car insurance if some of your employees use their personal vehicles to run business errands.

Professional Liability Insurance

Parents and guardians could sue your childcare facility for injuries allegedly caused by now providing the level of service expected of you. A professional liability insurance policy will pay the defense costs if you’re accused of causing harm when rendering services. 

For instance, a professional liability policy will cover you if you’re accused of not teaching a kid to read as expected or serving milk to an allergic child.

Abuse and Molestation Insurance

A parent may sue you based on allegations that their child was sexually molested or physically abused. The claims may arise from acts that were allegedly committed by yourself, an employee or a visitor. An abuse and molestation insurance policy will cover such accusations, even when they have no grounds.

You will most likely face accusations for failing to supervise your employee or hiring someone without conducting a proper background check. Abuse and molestation insurance is available as a stand-alone policy or as an endorsement on a liability insurance policy.

Workers’ Compensation Insurance

Workers’ compensation insurance pays for the costs arising from work-related illnesses and injuries, including medical bills and lost wages. It will also pay all legal fees if an injured employee decides to sue your business.

Umbrella Liability Insurance

Umbrella insurance offers additional coverage should claims made against your business exceed your policy’s limits. Umbrella insurance will pick up from where your general liability or auto insurance policy falls short. You may need umbrella insurance if you’re renting a bigger space or hiring additional personnel.

Cost of Childcare Insurance

The cost of childcare insurance is unique to every business. It will cost less to insure a home-based childcare business compared to a commercial daycare facility. 

Other details and business characteristics insurers consider when setting premiums include:

  • Number of employees. The cost of your business’ workers’ compensation insurance policy will depend on your payroll size. You will pay more for coverage if you have more staff on board. Employees will also increase your liability risk, so you’ll pay more for general liability insurance.
  • Amount of business revenue. You can expect to pay a higher premium if you record higher revenues. Insurance companies assume you have more to lose in the event of a lawsuit.
  • Coverage limits. Opting for a higher coverage limit will increase your childcare insurance costs since your carrier will pay more for compensation.
  • Claims history. Insurers will consider the possibility of filing a claim when insuring your business. You can expect to pay a higher premium if your business has a history of filing claims.
  • Your industry exposures. Since taking care of children and providing daycare services is fairly low-risk, you’ll obviously pay less for coverage compared to higher-risk industries like logging.
  • Deductible amount. You can choose a higher deductible amount to lower your premium rates, but you will pay more out-of-pocket in the event of a claim.

How Childcare Insurance Works

Facilities that care for children need childcare insurance – a group of business policies designed for childcare providers. You’ll need this type of insurance whether you run a home-based daycare business or have a commercial childcare facility. With each policy protecting against a specific risk, your daycare business will need more than a single policy.

Many insurers will let business owners combine general liability and commercial property insurance in a single business owner’s policy (BOP). You’ll need to purchase workers’ compensation insurance if your business has more than 1 employee. Commercial auto insurance is also essential if your business operates a fleet.

We also recommend that you purchase professional liability insurance to protect your business from claims that it didn’t render services appropriately. An umbrella policy will also protect you from any costs beyond your policy limit.

Protect Your Childcare Business

Whether it’s a commercial childcare center or a home-based daycare, your business faces unique risks. An accident within your business premise or legal actions against claims of slander could present a huge financial challenge to your business. Having the right insurance in place will help you run your business with peace of mind, knowing you’re covered from the unexpected. For more information on childcare coverage, contact our recommended carriers today for your no-obligation quote.