What kind of Daycare Insurance strategy can you use to safeguard yourself and your income in the event of a accident? The coverage’s you select in your Daycare Insurance package is essential in how you protect your business and while there are many insurance coverage’s you can purchase, which are best for your business?
There’s a great deal of daycare insurance coverage’s you probably should buy to fully protect your small business. Purchasing more than minimal Daycare Insurance coverage’s may end up costing your business the same if not more, but the peace of mind of being covered is invaluable.
You as the small business owner just need to be aware of the coverage’s you can purchase so you can understand what you bought and the reason why they can help you.
Daycare Insurance – Liability
A Daycare Insurance Package’s General Liability coverage insures your business from the cost of lawsuits from either Bodily Injury and Property Damage accidents on your premises from either your operations, employees, or your marketing. This Daycare Insurance General Liability policy coverage will only cover liabilities originating from your business.
This type of Daycare Insurance policy does not include; the Workers Compensation, Discrimination or Sexual Harassment, or Commercial Auto Insurance – you can purchase separate coverage to cover these types of exposures.
A Daycare Insurance Liability plan is different compared to standard insurance policies and one reason is because of how medical payments work. On most Daycare Insurance policies, students are excluded from being covered under medical payments. Only a couple of carriers do include this in the Medical Payments. So, that is something you need to make sure you ask your agent if your insurance plan covers. The Medical Payments part of a General Liability policy is coverage that is without fault, so if a student does something that injures themselves, you can get them to the emergency room and this coverage will cover the cost up to the limit of Medical Payments you policy covers.
Quite a few carriers write coverage for daycares, but few have the experience to have the correct wording in them to protect your business in the best way. We use a carrier which gives an extended description of Bodily Injury in which their terminology contains wording to insure you from a disease or sickness which was the result of emotional distress as additional coverage at no additional price.
Having the right daycare insurance policy is all about being aware that which you would need and if your insured for it. It is absolutely conceivable that you will not ever have a claim but, incidents happen and you’d wind up having to pay out more for this single loss in a than you would pay to have a complete Daycare Insurance Package.
Daycare Insurance – Professional Liability
Why do you need to have Professional Liability? Is it best to buy this insurance coverage? A Daycare Insurance Professional Liability policy protects your business for guidance and actions both you and your facility provide which may have to depend on your experience. While that is a complex description let’s consider this claim example: this Childcare complex had a policy that all students would reach a specific reading level once they graduated. The child left the Day care complex and his reading level wasn’t up to the limit they felt they were guaranteed.
The parents sued the complex to pay for private instructors and damages having to do with this. The Childcare’s Professional Liability coverage is what covers’s your business in this particular claim situation.
Daycare Insurance – Abuse and Molestation Coverage
Abuse & Molestation coverage is another valuable coverage for your Daycare Insurance Package. This Abuse & Molestation coverage insures your business a bodily injury claim which would be a consequence of allegations of Abuse and/or Molestation. This type of insurance exposure is critical and vital because it insures your business from Litigation.
An claims example of this would be an employee punishing a one of the children. On this claim, the child’s parents talked to their child and were told they were touched wrong. They then proceeded to call the police to press charges and then they hired an attorney to sue the school.
Abuse and Molestation is an important insurance coverage that you should make sure to include in your Daycare Insurance package as being without it if a claim happened would not be good.
Daycare Insurance – Certain Civil and Criminal Defense Cost Reimbursement
Certain Civil and Criminal Defense Cost Reimbursement is yet another insurance coverage that should be included in a policy you purchase as the extra cost of it is well worth it. What does it do? This coverage covers you and your employees personally if one of your employees is sued due to an abuse and molestation and then found innocent. All insurance policies will not cover illegal action – so if they are guilty this coverage would not cover their costs.
Say you had a student that alleged an worker touched him wrongly. The child’s parent contacted the police and the member of staff was arrested. The employee said that they did not do it and while they were defended the defense costs got up to $50,000. For this matter both the claim as well as the lawsuit ended since it was found that the child conjured up the whole event. In this claims example, the lawsuit was not continued due to inadequate evidence and the defense costs the insurance company paid.
Daycare Insurance – Other Coverages
You also have other insurance coverage’s you can purchase to protect your business including the following..
Workers Compensation – Covers your employees from injuries and gives you liability coverage if they sued you.
Business Auto – Covering Owned Auto’s if used to transport children.
Employment Practices Liability Insurance – Covers your business should an employee sue you for discrimination or sexual harassment.
These Daycare Insurance coverage’s can be included in a Daycare Insurance Package. Just what is the best plan for your business – In the end that will up to you… Do bear in mind, the more you have the more you have at risk so it is better to be insured correctly.