Does Homeowners Insurance Cover Home Daycares?

While home daycares can be a lucrative and rewarding business, they come with a certain amount of risk. Additionally, your normal homeowners' insurance policy does not include all of the coverage you require in the event of an accident on your property.

This is when an endorsement of your home daycare insurance policy comes in handy. Numerous insurers will allow you to add this additional liability and property coverage to your ordinary homeowners' insurance policy to safeguard youngsters under your care in the case of an accident.

Is My Home Daycare Covered Under My Homeowners Insurance?

No, a regular homeowners insurance policy does not cover companies on your property, such as a home daycare. While most homeowners insurance policies provide up to $2,500 in coverage for home business property, this does not include personal liability coverage.

If a kid is harmed while in your care and you are sued for damages, you will be responsible for any medical and legal expenses incurred.

How Much Does Home Daycare Insurance Cost?

Home daycare insurance is a specialized sort of home business insurance that many carriers will add for an additional price to your ordinary home insurance policy. This endorsement broadens your business's liability coverage, ensuring that you are not personally liable for damages if a kid is injured while in your care.

Most home insurance carriers require that you have no more than three to six children in your residence to qualify for a home daycare endorsement — however, this varies by insurer. If you operate a larger daycare, you will almost certainly need to purchase a separate business insurance coverage.

What Is Covered By Home Daycare Insurance?

Home daycare insurance policies vary by provider but often include a combination of property and liability coverage.

These often include the following:

Coverage for general liability. Protects you from litigation and high medical expenditures if a kid is hurt while in your care, including on the playground, while using educational materials, or on household furniture.
Medical coverage for accidents. It covers medical expenses for any children injured while in your care if their parent's health insurance does not cover the entire amount.
Coverage for professional liability. Protects your business from negligence lawsuits, such as if one of your daycare staff unintentionally provides a peanut-allergic child in your care and the child's parent sues you for damages.
Liability coverage for commercial vehicles. In the case of an unfortunate accident, while transporting children in your care, this policy protects you.
Liability coverage for corporal punishment. Contributes toward the cost of legal fees if a member of your daycare staff spanks or strikes a kid in your care and the parent sues you for damages.
Liability coverage for abuse and molestation. It covers legal bills and any judgments obtained against your business if you or a staff member is found guilty of abuse.
Coverage for errors and omissions. Also known as malpractice insurance, this covers you if you are accused of misconduct and held legally liable for damages.
Coverage for excess liability. Extends the liability coverage limitations of ordinary daycare insurance policies beyond the customary maximum.
Coverage of real estate. Covers damage to property that has been expressly designated as childcare property, including playground equipment and instructional items.

Five Insurance Providers That Provide Coverage For In-home Daycare

If you're considering enrolling in at-home childcare insurance, you might begin by comparing prices from the following companies: