Texas Daycare Insurance: What HHSC Licensing Requires
Short answer: Licensed Texas child care centers must maintain liability insurance of $300,000 per occurrence of negligence covering injury to children on premises or in care, and provide proof to HHSC Child Care Regulation every year by the anniversary of the permit. A handful of operation types are exempt (certain state-operated, small employer-based, shelter care, and relative-only homes). Cubby quotes Texas centers and home daycares same day with licensing-ready certificates.
Texas Requirements at a Glance
| Requirement | Rule | Notes |
|---|---|---|
| Liability insurance | $300,000 per occurrence | Injury to a child on premises, or in care off-premises |
| Proof to HHSC | Annually | By the permit's anniversary date |
| Exemptions | Limited | Certain state, employer-based, shelter, and relative-only operations |
| Can't get coverage? | Parent notification required | Written notice to every parent — a hard conversation to have |
Source: 26 TAC §746.203 and the HHSC Child Care Regulation handbook — verify current rules at hhs.texas.gov. We confirm current requirements on every quote.
The Anniversary-Date Scramble
Texas doesn't just require the coverage — it requires fresh proof every year on your permit anniversary. Every summer we hear from center directors whose renewal certificate is stuck in an agent's inbox while their anniversary date bears down. Cubby tracks your permit anniversary alongside your policy renewal and files the certificate before either becomes urgent.
$300K Satisfies Licensing. It Doesn't Cover the Real Risk.
The Texas minimum addresses playground-injury negligence — real, but not what ends child care businesses. The claim that does is an abuse & molestation allegation, where defense costs alone can blow past $300,000, and which many budget Texas policies quietly exclude. Every Cubby quote shows the A&M limit in writing next to the liability limit — compare any competing quote on that line first.
What a Complete Texas Package Looks Like
- General liability at $300K+ per occurrence — most Texas centers step up to $1M for landlord and church-campus lease requirements.
- Abuse & molestation coverage with real limits, in writing.
- Professional liability for supervision, medication, and allergy-protocol claims.
- Commercial auto for the state's many transport and after-school pickup programs.
- Accident medical — pays a hurt child's bills no-fault, keeps small incidents small.
- Workers comp — elective in Texas, but going bare on daycare payroll invites the lawsuit comp exists to prevent.
Get HHSC-Ready Proof Today
New license, anniversary deadline, or a renewal that jumped — start your quote and a Texas-savvy specialist comes back today.