What Types of Coverage Does a Daycare Need?

Finding a safe and clean daycare is a significant concern and decision for families with children. And with concerns around COVID-19 permeating through the industry, the need to keep children protected is at the forefront of every parent’s mind. Thus, businesses in the daycare industry need proper liability insurance, such as Social Services Insurance from Tangram, as daily operations amid coronavirus put daycares at risk.

Here is a list of the top daycare insurance coverages that centers should go over with their insurance provider.

General Liability Insurance

This coverage is required by law in most states. However, most business owners assume that it should be comprehensive since it’s a basic level of coverage for daily operations. Unfortunately, this isn’t the case as general liability policies will cover typical bodily injuries and property damage, but not outstanding claims, such as cybersecurity or automobile issues.

Hire and Non-Owned Auto

If a daycare center owns and uses vehicles as part of its business, it will need commercial auto coverage. Moreover, if a daycare has employees who use the vehicle for business-related tasks, they will need to acquire hired and non-owned auto coverage. This covers the liability a daycare center incurs due to any accidents employees suffer while driving on company time.

Business Income Insurance

This type of commercial property insurance covers the loss of income suffered when damage is caused to the daycare center’s property. If the damage was caused by a covered loss and results in suspension or slowdown in business, business owners can file a claim under this coverage. Coverage may also apply to losses suffered after completion of repairs for a specified number of days or weeks, depending on the policy language.

Business income coverage with extra expense coverage is a supplemental type of commercial property insurance that pays for additional costs outside of regular operating expenses. Typically, these are costs that an organization suffers from sustaining operations while its original property is being repaired due to damage.

Workers’ Compensation Insurance

At its most basic, workers’ compensation is a state-regulated policy that pays certain lost wages and medical expenses for employees injured on the job. Payouts for worker injuries and deaths must meet at least minimum requirements, but they can also exceed policy limits.

Unlike lawsuits related to occupational accidents, the burden of proof lies with the worker, not the daycare center. Under workers’ compensation laws, a person cannot sue for pain and suffering and cannot receive a judgment for punitive damages.

About Tangram Insurance Services

Located across the Golden Gate Bridge, just outside of San Francisco, Tangram Insurance Services is a full-service Managing General Underwriter and Program Manager offering specialty programs. We focus on industry-relevant coverage, competitive pricing, and practical business and risk management solutions for your clients. Since we are not all things to all people, we make sure to create outstanding custom-built solutions that matter to those businesses, and the brokers who serve those industries. Contact us at (888) 744-9810.