Insurance is risk management that is intended to
hedge against risks of contingent loss done by transferring the risk of
the anticipated loss from one entity to another in exchange for the
payment of a premium. The insured actually incurs a small loss, that is
the premium paid for the coverage, in order to prevent a greater loss
like property losses or payment of damages.
Insurance coverage aims to protect a person or a business from risk,
liability, and exposure. It aims to give the business owner peace of
mind that should something happens, the insurance will cover almost
anything from child injury to property damage. By getting the necessary
insurance coverage, the business owner's responsibility towards injury
or damages will be taken over the insurance company.
For a daycare center, the following are the basic insurance types that
will be needed:
• Business Insurance - It protects you and your investments against
future loses. It also provides protection to both current and future
employees of your business.
• Fire and accident insurance - These forms of insurance provide
protection to you and your property from any risk of accident or fire.
The property that you used in your daycare center operation can be
rebuilt in the event of fire because you will be compensated for your
losses by the insurance company.
• Daycare Liability Insurance - This kind of insurance covers almost
everything that is related to your daycare business. It covers loss,
bodily injury, and legal costs that arise from any accident or injury in
the daycare center. A child in the daycare center may trip or sustain
any other kind of injury which will require treatment, even
hospitalization. Whatever expenses incurred in relation to such injury
will be paid for by the insurance company. Anything could happen in a
field trip involving the children in your daycare center. Expenses
resulting from any accident or injury sustained during the field trip
are covered by the liability insurance. If the daycare center will be
sued as a result of any injury or bodily harm, the legal expenses are
also covered by the insurance company. Legal expenses for child abuse
allegations are covered by a daycare liability insurance.
• Errors and Omissions Insurance - This is a type of insurance that
provides coverage for negligence by daycare center personnel, personal
injury on client children and employees as well any accident sustained
during field trips involving the children under the care of the daycare
facility. This type of insurance covers also medical expenses, including
accidents and accidental death of a child who is under the care of the
The above-mentioned are the basic types of insurance for a daycare
center but there are many other types of insurance that the owner of a
facility can avail of in order to provide more protection to his
But bear in mind that there are different types of insurance coverage
for a home daycare center and a commercial daycare centers. Make sure
that you get the right kind of insurance for your daycare center