California Daycare Insurance: What the State Actually Requires
Short answer: California family child care homes must maintain liability insurance of at least $100,000 per occurrence and $300,000 aggregate, OR a $300,000 bond, OR — the option most providers regret — a file of signed affidavits from every parent acknowledging the home is uninsured (Health & Safety Code 1597.531). Renters have an extra wrinkle: the affidavit must also warn parents the property owner's insurance likely won't cover daycare claims. Cubby quotes California family child care and centers same day, from about $40/month.
California's Three Options (and Why One Is a Trap)
| Option | Requirement | Reality check |
|---|---|---|
| Liability insurance | $100K per occurrence / $300K aggregate | The standard choice — from ~$40/month |
| Bond | $300,000 aggregate | Rare; usually costs more than insurance |
| Parent affidavits | Signed by every enrolled family, on the state form, checked at licensing inspections | Legal, but you're telling every parent you're uninsured — and you still carry all the risk personally |
Source: California Health & Safety Code § 1597.531 — verify current rules with CDSS Community Care Licensing. We confirm current requirements on every quote.
The Affidavit Option Costs More Than It Saves
Going uninsured with parent affidavits is legal in California — and it's the most expensive "free" option in child care. You hand every new family a signed reminder that you carry no coverage (a real enrollment killer in competitive markets), the affidavit file gets checked at every inspection, and one playground fracture still lands on your personal assets. The insurance that makes the affidavits unnecessary usually costs less than one family pays you in a month.
The State Minimum vs. What You Actually Need
The $100K/$300K statutory minimum keeps licensing happy, but it says nothing about the exposure that actually ends child care businesses: abuse & molestation allegations, where defense costs alone can exceed the state minimum. A complete California package adds real A&M limits, professional liability for supervision claims, and accident medical — which pays a hurt child's bills no-fault and keeps small incidents from becoming lawsuits.
What a Complete California Package Looks Like
- General liability at or above the state minimums — with certificates for licensing, landlords, and CACFP food-program sponsors.
- Abuse & molestation coverage with limits shown in writing on every quote.
- Professional liability for care and supervision decisions.
- Accident medical — inexpensive and parent-friendly.
- Workers comp once you have staff (required in California).
- Renting? See our home daycare guide — your landlord's insurance won't cover you, and California's affidavit rule says so out loud.
Get California-Compliant Proof Today
New license application, an inspector asking for your affidavit file, or a renewal that jumped — start your quote and a California-savvy specialist comes back today.