Daycares and Childcare Centers need specific business insurance to protect against the unique risks of their industry. General liability for Daycares and Childcare Centers averages $1,800 per year. Here is exactly what coverage you need.
What Insurance Do Daycares and Childcare Centers Need
Daycare businesses face unique liability involving children. Abuse and molestation coverage is critical — most standard general liability policies specifically exclude this risk.
Required coverage for Daycares and Childcare Centers:
- General Liability
- Abuse and Molestation Coverage
- Workers Compensation
- Commercial Property
Optional but strongly recommended:
- Commercial Auto
- Employment Practices Liability
- Commercial Umbrella
How Much Does Daycares and Childcare Centers Insurance Cost
| Coverage Type | Typical Annual Cost | What It Covers |
|---|---|---|
| General Liability | $1,800/year | Third-party bodily injury and property damage claims |
| Business Owner's Policy | $3,600/year | GL plus commercial property bundled at a discount |
| Workers Compensation | $500–$5,000+ per employee | Employee injuries and occupational illness |
| Commercial Auto | $1,200–$3,600/year per vehicle | Company vehicles used for business purposes |
How to Get the Best Daycares and Childcare Centers Insurance Rate
- Compare quotes from at least 3 business insurance providers — rates vary significantly for daycares and childcare centers.
- Bundle coverages into a Business Owner's Policy where applicable for 10–25% savings.
- Implement documented safety procedures and training — insurers reward businesses with strong safety records.
- Maintain a clean claims history — even one significant claim can increase premiums 30–50% at renewal.
- Work with an independent insurance agent who specializes in daycares and childcare centers since they access markets that specialize in your trade.
- Review and update coverage annually — over-insurance and under-insurance both cost you money.
Industry Tip
Get certificates of insurance from all subcontractors and require them to add you as an additional insured on their policy. Subcontractors without proper insurance can create uninsured liability under your general liability policy.