Daycares across Texas are facing a challenging environment with rising insurance costs and the prospect of non-renewals from insurers. If your daycare has received a notice that your current insurance policy will not be renewed, it's important to take immediate action to safeguard your financial future and keep your doors open.
First things first. Receiving a non-renewal notice can be daunting, but acting promptly allows you to make informed choices rather than rushing into quick decisions that might not be beneficial. The state mandates a notice period, giving you time to find new coverage options. However, the current state of the commercial property insurance market requires you to start this process as early as possible to ensure your daycare has comprehensive coverage tailored to its unique needs.
Now that you understand the sense of urgency required when you get the non-renewal notice from your insurance company, let's take a look at the steps you should take as a Daycare business owner in Texas when this happens. The goal will always be for you to have the property coverage that you need to secure your licensed family day care center.
Understand which policies are being included in this non-renewal process. Is it all of them or part of them? Is it due to nonpayment of premium, a change in risk profile, or is the insurance company withdrawing from the market? Each reason affects how other insurance providers will view your daycare and if they will offer you appropriate coverage limits.
When you determine whether it's all your policies or only specific ones, is it only property insurance or liability coverage? We have seen that many insurance companies will leave commercial auto insurance or workers' compensation insurance in place since they tend to be more profitable for them. Knowing this helps you concentrate your efforts on the necessary areas in need of proper coverage.
Find out when the non-renewal becomes effective, typically at the end of your policy term. Once you have this date, it's vital to act quickly. Starting the process early gives you enough time to explore all available options and secure the best business insurance policy for your daycare. This can even help to potentially minimize sharp rate increases that can come with this process.
Quickly engage with an independent specialist in daycare insurance, not just any insurance agent. This specialist will understand the specific risks and needs of Texas daycares so that they can provide professional advice. Choose someone with experience in navigating the Texas insurance market because the property market is in turmoil.
Select an independent agency offering a range of insurance solutions specific to Texas daycares. Finding the right partner is critical to securing your daycare's future, so trust someone with expertise and reliability. This will allow them to offer solutions tailored to your requirements, providing certainty to your business.
Stay in regular contact with your agent during the proposal phase. Underwriters with daycare insurance providers need precise information about your daycare's risks to offer appropriate coverage. Being able to promptly provide any requested details not only expedites the process but also demonstrates your proactive approach to securing your daycare's protection.
At this stage, your agent should present multiple options that balance cost and coverage. Don't settle for the first option or just look at the one with the lowest annual premium. Evaluating all proposals thoroughly allows you to choose the coverage that fits both your budget and protection needs. It is about managing the future risk to your business.
An experienced agent will help you understand the differences between these proposals from various insurance carriers. This should include coverage details, coverage limits, and any additional insurance costs so that you can make a well-informed decision for your daycare.
At Insurance For Texans, we offer the Truer Texas Daycare Insurance program. This program is dedicated to helping Texas daycares navigate the complex and often overwhelming insurance industry landscape. Our True Texas Daycare Insurance Program offers customized solutions that address the unique needs of daycares across the state. With years of experience, our team continually seeks new markets and options to provide the best possible coverage for your institution.
If your daycare has received a non-renewal notice or even if you're simply exploring new insurance options, we're eager to help. We're in constant discussions with new providers to ensure we offer the best options for our daycare clients.
Taking the steps we listed above will position your daycare to secure appropriate coverage and avoid potential gaps. Remember, time is essential, and having the right agent on your side makes all the difference.
Click the button below to let us help you find the certainty your daycare needs in securing a new insurance policy.