Operating a family daycare from your home combines childcare responsibilities with business operations. You may be caring for children, managing parents and families, purchasing supplies, maintaining your property, and handling the everyday responsibilities of running a small business.
These activities can create risks that may not be fully addressed by a standard personal insurance policy. The appropriate coverage depends on your business, home, childcare operations, eligibility, and policy terms.
Why Do Family Daycares Need Business Insurance?
Family daycares can face claims involving children in care, parents, visitors, property damage, and other third parties.
General liability insurance may help protect an eligible family daycare against certain third-party claims involving bodily injury, property damage, personal and advertising injury, and other covered liabilities.
For example, if a child or parent is injured during your childcare operations, general liability may provide coverage subject to the policy terms.
Because the business operates from a home, it is also important to understand how your insurance addresses the business use of the property.
What Insurance Does a Family Daycare Need?
Depending on your business and eligibility, coverage for family daycares may include:
General Liability Insurance
General liability insurance can help protect against certain third-party claims involving bodily injury, property damage, personal and advertising injury, and other covered liabilities.
This can be an important consideration for businesses providing childcare services directly to families.
Business Personal Property
Family daycares may use toys, furniture, educational materials, supplies, equipment, and other property specifically for their business.
Business personal property coverage may help protect eligible property used in your childcare operations.
Business Income Insurance
A covered loss could temporarily prevent you from operating your family daycare. Business income coverage may help replace certain lost income and continuing expenses following a covered loss, subject to the policy terms.
Workers’ Compensation
If your family daycare has employees, workers’ compensation may provide coverage for eligible work-related injuries or illnesses, subject to applicable requirements and policy terms.
Commercial Property Insurance
Depending on the nature of your home-based operation and eligibility, commercial property coverage may be available for eligible business property and covered assets.
Home-based childcare businesses should make sure their insurance properly reflects the business activities conducted at the property.
Employment Practices Liability Insurance
If you have employees, employment practices liability insurance, or EPLI, may provide coverage for certain employment-related claims, subject to the policy terms.
Cyber Coverage
Family daycares may maintain information about children, parents, employees, schedules, payments, and other business activities.
Cyber coverage may help address certain covered losses and expenses resulting from eligible cyber incidents, depending on the policy.
Commercial Umbrella Liability
Some family daycare businesses may benefit from additional liability limits above their underlying policies. Commercial umbrella liability may provide additional limits for certain covered claims.
What Risks Do Family Daycares Face?
Home-based childcare businesses can face risks involving children, parents, visitors, property, employees, and daily operations.
Common risks may include:
- Injuries involving children or other third parties
- Accidental property damage
- Slips, trips, and falls
- Damage or loss involving business property
- Employee injuries
- Business interruptions following a covered loss
- Cyber incidents involving business or personal information
- Employment-related claims
Operating a daycare from home can also create insurance considerations that may differ from those of a traditional commercial childcare center.
Does Every Family Daycare Need the Same Insurance?
No. Insurance needs vary based on the number of children in care, business structure, home-based operations, employees, services, property, and other factors.
A family daycare operated by one provider may have different insurance needs than a larger home-based childcare business with employees and additional services.
Your insurance should reflect how your business actually operates.
Choosing Insurance for Your Family Daycare
When exploring insurance, consider the number of children you care for, whether you have employees, the business activities performed at your home, the property and equipment you use, and the services you provide.
Depending on your business and eligibility, a combination of general liability, business personal property, business income, workers’ compensation, commercial property, EPLI, cyber coverage, commercial umbrella liability, and other coverage options may help address different areas of risk.
Protect Your Florida Family Daycare
Nieves Insurance Group helps eligible Florida family daycares and home-based childcare businesses explore insurance options based on their operations and coverage needs.
Whether you operate a small family daycare or a larger home-based childcare business, we can help you explore available options and answer your questions.
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