What You Should Know About Preschool Insurance

Running a preschool is a rewarding experience. Yet, there are many factors to being successful, just like with any business. And one of the most important things to take care of is insurance for your preschool. If you’re not well-versed in how it all works, here is what you should know about preschool insurance.

What Type of Things Does Preschool Insurance Cover?

If you own a vehicle or a house, you must have insurance. A business is no different yet a preschool comes with a few differences in what insurance may cover. In fact, some of the coverage is quite unique from what you’d find at a restaurant or retail store.

According to an insurance company in California, here is what to expect:

To operate a family child care home in California, you need to either have liability insurance covering injury to clients and guests in the amount of at least $100,000 per occurrence. Instead of having insurance, a family child care home can also have families sign affidavits signed by each enrolled family. The challenge with affidavits though is that they do not protect your family or assets if something bad were to happen in the household – which is why we supply liability insurance.

Basically, you can have parents sign an affidavit and try to use that in case a child is injured but that only gives you a little leeway. Parents can easily challenge this in court and as stated above, it does not protect your assets in the home if you run a preschool out of your home.

Unique Coverage Options

Here are just a few of the things to be aware of that preschool insurance may cover depending on who you choose.

  • Liability coverage

  • Child abuse legal defense

  • Legal defense for administrative hearings

  • Food preparation (in case a child or someone in your care gets sick from food at your premises)

  • Dispensing medication (just in case wrong medicine or wrong amount given)

  • Field trips like playgrounds, parks, off-premises locations, and some even cover trampolines

  • Swimming pools (on or off-site)

  • Accidental Medical for when a child is injured on or off-site like with car transportation

  • Accidental death benefits

  • Accidental dismemberment

  • Tooth loss

  • Some even offer professional liability and abuse and molestation insurance

  • Dogs although some may be excluded (some breeds excluded include pit bulls, Akita, rottweilers, German shepherds, bull mastiffs, and dobermans)

What Kind of Insurance Do You Need?

Preschool insurance is not a one size fits all kind of thing. Just like you have individual needs for home and car insurance, so does a preschool. There are a few things to consider when choosing insurance for your daycare or preschool.

  • There is insurance for those who want liability insurance with a fast quote and affordability.

  • Some insurance companies offer special discounts for things like background screenings and safety training for employees, something that is a good idea anyway. So why not take advantage of savings opportunities?

  • Some companies offer a package deal so that you can have all of your insurance coverage in one place. If you are not sure, call your home and auto insurance to find out if they offer preschool or business insurance as well and see if you can get a quote to tether them all together.

  • There are companies that offer a fast way to get insurance without filling out tons of paperwork. Do make sure you read everything even if it seems like a simple way of getting insurance.

  • And last but not least, those who need affordable insurance can shop around to find out what fits their budget. As with any type of insurance, the smaller your business, the cheaper it should be. There are always extras that you can decide on when choosing so that you get what you need without paying for the things that you don’t.

In some cases, you can go with an insurance broker who can find you insurance quotes from multiple companies. According to Fits Small Businesses, here are the common types of insurance for a preschool. You may need more than just one type. For instance, liability is most common but you also will probably want property insurance as well.

General Liability Insurance

Third-party claims for bodily injury, property damage, and reputational harm

Property Insurance

Business assets such as building, equipment, and supplies

Professional Liability Insurance

Business assets such as building, equipment, and supplies

Abuse & Molestation Coverage

Losses arising from an employee abusing a child under your care

Commercial Auto Insurance

Injuries, damages, and lawsuits arising from accidents involving vehicles your business uses

Worker’s Compensation Insurance

Medical bills and wage replacement for employees who suffer work-related injuries

Umbrella Insurance

Claims that exceed limits on underlying liability policies

These are just the basic definitions but you get the idea of what is offered and what is there for you to decide the best coverage for your preschool.

Just like having an accountant or knowing which food vendor to order from, preschool insurance is an integral part of doing business with the peace of mind that you are covered if you need it.

Schedule a call today as your first step to be
ing less overwhelmed and more empowered with your business financials.

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