Childcare is one of the most liability-sensitive businesses there is. The work is meaningful, but caring for children raises exposures that demand coverage most businesses never have to think about — and standard policies often exclude the biggest ones.
The core coverages
- General liability — injuries to children and visitors on the premises.
- Abuse & molestation — the coverage that matters most in childcare. These claims are catastrophic and frequently excluded or capped under standard general liability, so a dedicated (or endorsed) coverage is essential.
- Commercial property — your building, equipment, and play structures.
- Workers' compensation — for staff, required in most states.
Centers that transport children need commercial or hired/non-owned auto, and many carry professional liability for supervision and care decisions.
The exposures that define this industry
- Supervision and injury — the most frequent claims, from playground falls to allergic reactions.
- Abuse & molestation — low frequency, extreme severity; carriers underwrite it carefully.
- Transportation — field trips and pickup/drop-off add auto exposure.
- Regulatory and licensing — staff ratios, background checks, and safety protocols affect both compliance and coverage.
What helps your eligibility and cost
Documented background checks, strong staff-to-child ratios, written safety and supervision policies, and proper state licensing all improve both your risk and your pricing — carriers reward centers that can demonstrate discipline here.
Getting covered
You can complete our Daycare & Childcare application online or request a quote, and we'll build coverage — including the abuse & molestation protection this industry shouldn't go without.
Frequently Asked
What insurance does a daycare need?
General liability, abuse & molestation coverage, commercial property, and workers' comp. Centers that transport children also need commercial/hired auto, and many carry professional liability.
Is abuse & molestation coverage really necessary?
For any childcare operation, yes. These claims are severe and are often excluded or sublimited under standard general liability, so dedicated coverage is essential.
Does licensing affect my insurance?
Yes — carriers look at state licensing, staff-to-child ratios, background-check practices, and safety protocols, all of which affect eligibility and pricing.
This article is general information for business owners, not insurance or legal advice, and does not bind or alter coverage. Policy terms, eligibility, and pricing vary by carrier and state — confirm specifics with our licensed team before making decisions.