Daycare Insurance: Frequently Asked Questions
How much does daycare insurance cost per month?
Home daycares typically pay $40–$125/month for a full package; centers $170–$700+ depending on enrollment. Most carriers offer pay plans. Full breakdown in the cost guide.
Does state licensing require insurance?
Most states require proof of general liability (commonly $300K–$1M) to issue or renew a license, plus workers comp once you have staff. We confirm your state's exact requirements at quoting and issue licensing-ready certificates same day.
Is abuse & molestation coverage included?
Not always — and this is the most important question to ask about any daycare policy. Budget policies often exclude A&M or bury a tiny sublimit. We include real limits and show you the number in writing on every quote.
Does homeowners insurance cover my home daycare?
No — homeowners policies exclude business activity, and an undisclosed daycare can put your whole homeowners policy at risk. Home daycare needs its own policy, from about $450/year. Full explanation on the home daycare page.
Are field trips, transport, and off-site activities covered?
Yes, when disclosed. Liability follows your supervision off-site; transporting children requires commercial auto with child-appropriate limits; swimming and other higher-risk outings should be disclosed so they're clearly covered.
Do I need insurance before my license is issued?
Usually yes — the COI is part of most licensing applications. We quote new programs same day (opening-soon programs welcome) and issue certificates as soon as you bind.
What is accident medical coverage?
No-fault coverage that pays a child's medical bills after an injury in your care, regardless of fault. Inexpensive, parent-friendly, and it keeps ER bills from turning into lawsuits.
Do church nurseries, co-ops, and drop-in care need coverage?
Yes — any organized care of other people's children carries the same exposures, licensed or license-exempt. We place drop-in centers, gym childcare, church programs, and co-ops routinely.
What do carriers check before insuring a daycare?
Enrollment and ratios, staff background-check practices, playground surfacing, pools/trampolines on site, and claims history. Strong documentation earns credits — we help you present it.
Will one claim make me uninsurable?
No. It usually raises your renewal with your current carrier — which is exactly when to re-shop. Specialty markets underwrite the story and your corrective steps. Our placement rate is 100%.
How do you save providers 30% on average?
Competition. Generalist agents have one or two markets for child care and take whatever rate comes back. We run your file across the carriers that compete for daycare business, so they price to win. Across our book that averages about 30% savings.
Is nanny or babysitter insurance the same as daycare insurance?
No — they're different products. A nanny or babysitter works in the family's home, and coverage usually runs through the family's household policies or a small individual policy. Daycare insurance covers a business caring for multiple families' children at your location, with higher limits and abuse & molestation coverage. If you're a sitter who's grown into watching several families' kids regularly — congratulations, you're becoming a family child care business, and that's exactly who our home daycare policies are built for.
Is "in-home daycare insurance" different from home daycare insurance?
Same thing, different names — in-home daycare, home daycare, family child care, and group home daycare all describe licensed care in a residence, and all need the same dedicated policy (homeowners insurance excludes it). Whatever your state calls it, we insure it from about $40/month.
What do you need from me to quote?
The 60-second form — program type, enrollment, state — plus loss runs if you've been insured before. That's enough for same-day numbers.