Insurance for Family Child Care Providers

1)   Homeowners Insurance (does not cover risks associated with the business)

  • Coverage for the house
  • Coverage for the contents
  • Coverage for personal liability

2)   Business Property Insurance Policy

  • This policy covers the cost to replace all property used in your business (equipment, furniture, appliances, toys, etc.)
  • Coverage for business loss of income if your business is shut down because of a fire, bursting pipes, etc.

3)   Business (also called Commercial) Liability Insurance Policy

  • General liability coverage for accidents and lawsuits against your business.
  • Professional liability coverage to protect yourself in case you failed to adequately supervise the children in your care. Legal defense in which the limits of this coverage are in excess of the general liability limits
  • Sexual abuse coverage with separate liability limits that covers you, your family, and your employees.
  • Medical (“no fault”) coverage to cover expenses when children are injured.
  • Coverage for accidents when you are away from your home with the children
  • Renters want the ability to list their landlord as an “additional insured.”
  • The policy should be an occurrence form, not a claims made policy
  • The company has at least an “A” rating from the Best Company

4)   Car Insurance Policy

  • If your car is used in your business, you need a policy that will cover you for injuries and damages suffered in car accident while using your car for business purposes.

5)   Workers’ Compensation Insurance Policy

  • This policy covers employees for injuries suffered while working for you.

This handout was produced by Think Small (www.thinksmall.org).

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