At-Home Daycare: Do I Need Insurance?

You want to care for more than two children in your home, but you don’t know New York State rules and regulations. You also don’t know how to protect yourself from liability in case something goes wrong.

You need to learn about the different types of childcare licenses, the requirements for each one, and the insurance options available for your business. You don’t want to risk losing your home or facing a lawsuit because of an accident or injury involving a child in your care.

As an insurance agency with years of experience, we know how to find the best coverage for your at-home daycare. But we’re more than just experts. We’re also parents who understand the joys and challenges of childcare. That’s why we care about closing the gaps in your insurance that could put your business and your family at risk.

In this article, you’ll learn about the different types of childcare licenses in New York State, the advantages and disadvantages of each one, and the insurance coverage you need to protect your business and yourself from liability.

You’ll also find out how to apply for a license, how to comply with state regulations, and how to avoid common pitfalls that could jeopardize your childcare service. Whether you want to care for a few children or a large group, this article will help you make informed decisions and run a successful childcare business.

New York State Childcare Licensing Requirements

If you want to care for more than two children (other than your own) in your home for more than three hours a day, you need to get a childcare license from the New York State Office of Children and Family Services (OCFS).

There are two types of licenses you can apply for:

1. family daycare or
2. group family daycare.

A family daycare license allows you to care for up to 8 children, depending on their ages and the number of caregivers.

A group family daycare license allows you to care for up to 16 children if you have caregivers and meet other requirements.

Getting a childcare license also means that you need to have adequate insurance coverage for your business. Some home insurance carriers may allow you to add your family daycare business to your policy, but this is not automatic.

Carriers may also look for certain risk factors that could increase your liability, such as

• pools,
• dogs,
• ponds,
• trampolines,
• woodstoves,
• debris,
• or anything similar.

If you have any of these things on your property, you may not be able to get insurance coverage for your family daycare.

If you have a group family daycare license, or if you care for more than eight children, you need to get a commercial policy for your business. This type of policy provides more protection and coverage than a home policy, but it may also cost more. You should compare different options and find the best one for your needs and budget.

Be sure to speak with your insurance agent about your coverage needs, or contact us to discuss your policy options.

What Type of Insurance Coverage Do I Need for My At-Home Daycare?

Running an at-home daycare can be a rewarding and fulfilling career, but it also comes with risks and responsibilities. One of the most important things you need to consider is how to protect yourself and your business from liability claims if a child is injured in your home.

You’re legally responsible for the safety and well-being of the children in your care, and you could face lawsuits or damages if something goes wrong.

That’s why you need to have adequate insurance coverage for your at-home daycare business. Insurance can help you pay for legal fees, medical expenses, property damage, and other costs that may arise from an accident or injury involving a child in your care.

There are countless accounts of children who have been badly injured or have died while in the care of another, and you don’t want to risk losing everything you worked hard for because of an unforeseen event.

The type and amount of insurance coverage you need depends on several factors, such as

• the number of children you care for,
• the size and location of your home,
• the activities you offer, and
• the regulations in your area.

General Liability Insurance

General liability insurance can also cover claims of personal injury, such as slander or libel, that may arise from your business activities. So if you post a negative review of another daycare provider online and they sue you for defamation, general liability insurance can help pay for your defense costs and any settlement or judgment.

Professional Liability Insurance

Another type of insurance that would help cover issues like these is professional liability insurance. This type of insurance protects you from claims of negligence or errors in the services you provide.

In this sense, if a child gets sick because you gave them the wrong medication or dosage, professional liability insurance can help pay for their medical expenses and any legal fees if their parent sues you.

Professional liability insurance can also cover claims of breach of contract, such as failing to follow the terms of your agreement with the parents or the state licensing agency.

Besides general liability insurance and professional liability insurance, there may be other types of insurance that would be needed for your at-home daycare. Some of these are:

• Property insurance: covers your home and its contents from damage or loss
• Workers compensation insurance: covers your employees if they’re injured or become ill while working
• Umbrella insurance: provides extra liability coverage beyond the limits of your other policies

You should consider getting these types of insurance to protect yourself and your business from liability claims if a child is injured in your home.

Running an at-home daycare is not just a hobby or a way to make some extra income. It’s a serious business that requires careful planning and preparation. You need to treat it like a business and make sure you have the right insurance coverage to protect yourself and your livelihood from potential risks.

By doing so, you can focus on providing quality education and nurturing for the children in your care.

Can I Be Denied For a Claim with My Home Policy?

A claim denial is when a carrier refuses to provide insurance coverage for an incident, mishap, or peril you experience. When you file a claim with your insurance company, they will review the claim to determine if it’s covered under your policy.

If the claim isn’t covered, the insurer will deny it. There are many reasons why a claim may be denied.

As the owner of an at-home daycare, one of the factors that can lead to a claim denial is the lack of adequate insurance coverage for your business. If you only have a home policy and not a commercial policy, you may not be covered for incidents that occur as a result of your business practice.

To illustrate, if a child starts a fire and the home is badly damaged, the home policy may not pay for the repairs because an uninsured business activity caused the fire.

Similarly, if a child injures a neighbor’s child in a fistfight, the home policy may not cover the medical expenses or legal fees because the injury was also related to an uninsured business activity.

Another factor that can lead to a claim denial is negligence or misconduct on your part or the part of a caregiver you employ. If you fail to provide adequate supervision, safety measures, or care for the children, you may be held liable for any harm that results.

For example, if a child is hospitalized due to ingesting poison, their parents may sue you for medical expenses and damages. The insurer may deny the claim if they find that you or a caregiver were negligent or careless in storing or handling the poison.

Therefore, it’s important for you to have proper insurance coverage and to follow best practices in your business.

Is it Expensive to Add Coverage For My At-Home Daycare to My Home Policy?

Adding your at-home daycare business to your home policy may not be as expensive as you think. Depending on your home insurance carrier and the type of coverage you need, it may cost you less than $100 per year.

However, this option may not be available or sufficient for every at-home daycare provider. To qualify for this option, you need to meet the following criteria:

1. You have no significant risk factors on your property—as discussed above—such as pools, dogs, ponds, or anything similar that could increase your liability.
2. You have a valid childcare license from the New York State Office of Children and Family Services (OCFS). You cannot get insurance coverage without being licensed.
3. You care for six to eight children or less, depending on their ages and the number of caregivers. If you care for more than eight children or have at least one employee, you need a group family daycare license and a commercial policy, as stated earlier.

If you don’t meet these criteria, or if you want more protection and coverage than your home policy can provide, you should consider getting a commercial policy for your at-home daycare business like the ones discussed two sections earlier.

Can My Home Policy Provide Enough Coverage For My At-Home Daycare Business?

You may not have enough coverage with your home policy. You should think about increasing your liability limit to the highest amount your home carrier can offer you. Many people who don’t have home businesses have $300,000 in liability coverage.

We suggest $1 million if possible. If a child dies in your care, $300,000 may not be enough to cover the damages, and you may have to pay the rest out of pocket.

Protect Your At-Home Daycare Business with the Right Insurance

Running an at-home daycare in New York State requires more than just a passion for children. You also need to comply with the state licensing requirements, follow health and safety regulations, and have adequate insurance coverage for your business.

Insurance is not something you can overlook or skimp on when it comes to childcare. You need to protect yourself and your business from the risks and liabilities that come with caring for other people’s children. You don’t want to lose your home, savings, or reputation because of an ill-fated incident or a lawsuit.

That’s why we recommend that you review your insurance options carefully and choose the best one for your needs and budget. Whether you need a home policy, a commercial policy, or a combination of both, we can help you find the right coverage for your at-home daycare.

We have the experience and the expertise to guide you through the process and answer any questions you may have. We also have the compassion and the understanding to support you in your childcare journey. We know how important your work is, and we want to help you succeed.

To get started on protecting your at-home daycare business, click the Get a Quote button. You’ll be glad you did.