The Insurance for Texans Blog

Need Texas Daycare Insurance Fast? Here's What You Should Know

Written by Brad Hancock | Sep 16, 2024 2:50:20 PM

Running a childcare business in Texas comes with a unique set of challenges, and securing the right insurance coverage is one of them. If you find yourself needing insurance for your child care center quickly, you’re not alone. There have been many business owners in the last twelve months that have received a non-renewal or cancellation notice from their insurance company and it has created havoc for these focused daycare business owners.

The reasons for these notices can largely be blamed on the chaotic commercial property insurance market that is found in Texas right now, but concerns over legal liabilities for these facilities also exist. The insurance providers have seen large losses on both ends from policies issued for child care providers. The result in the uptick of these large property insurance claims AND daycare injury claims has caused Texas childcare insurance companies to pull back on issuing new daycare policies even if your business did nothing wrong.

Robert Failed To Take Quick Action On His Commercial Policy

Robert runs a fantastic daycare center on the Northside of Fort Worth and called us with this exact problem. He had received a notice of non-renewal for his daycare insurance policy after years of paying premiums to the same company and never filing a claim. He didn't completely understand the notice and since he had bought his policy online, he felt like he didn't have anyone to call with his questions. As the date of expiration neared, he reached out to our specialized agents to see what could be done. When we realized he had less than two weeks to find new comprehensive coverage, we explained that this could be a problem for his business property coverage. But set out trying to help Robert find a solution that could fit his needs. Our conversation began with questions so that we could understand exactly what kind of daycare insurance package his business needed. Whether you're starting a new daycare or your current policy is expiring soon, it’s essential to understand the key coverage options to protect your business, staff, and children.

What Coverage Does a Daycare Need?

Daycares, like Robert’s in Fort Worth, have a wide range of responsibilities, from ensuring child safety to managing daily operations. To cover the many risks involved, you’ll need a combination of coverage types, including:

  • General Liability Insurance: This is the foundational liability insurance coverage for any daycare. It protects your business from third party claims of injury, accidents, or property damage that could occur while families are at your commercial daycare center. For example, if a child were to slip and fall in the hallway, general liability would cover the medical expenses or legal fees associated with that incident.
  • Professional Liability Coverage: This liability policy covers lawsuits related to negligence or mistakes in care, such as if a parent makes a claim of negligence that your daycare did not provide adequate supervision for their child on the playground when an injury occurs. In Robert’s case, professional liability insurance provides protection should such a lawsuit arise. This was something missing from his expiring commercial daycare insurance package.
  • Abuse and Molestation Insurance: No one wants to imagine the worst, but abuse and molestation insurance is critical. It protects against claims involving allegations of abuse or inappropriate behavior by staff members, even if unfounded. These abuse allegations can cripple your business with the legal costs of defense. Ensuring your daycare has this coverage from the start will protect your business and reputation in the long run.
  • Property Insurance: Since Robert owns his daycare facility, property insurance protects the building, its contents, and outdoor equipment from damage caused by fire, theft, or other unexpected incidents. Even though you may not own like Robert does, property coverage can help replace physical property like playgrounds and even toys. This coverage was essential to protect the investment made in daycare centers.
  • Workers' Compensation Insurance: Workers' compensation is not required by law in Texas. However, it does cover medical costs from a work injury such as a child biting a worker. Additionally, it provides compensation to employees in the form of lost wages if an employee gets injured and cannot return to their job immediately. Whether it's a teacher lifting a child or slipping in the kitchen, this coverage helps protect your staff and your business from costly claims.

Getting Insurance Quickly

If you are like Robert and time is of the essence, here are some key steps he took to secure insurance quickly:

  1. Work with an Independent Insurance Agent: Independent agents have access to multiple insurance carriers and are likely to find coverage for your child care services in a time crunch. They also can help you compare options to make sure that your potential risks are addressed in a cost effective fashion. Most of all, the experienced agents know which insurers specialize in daycare coverage and can help you get a policy fast.

  2. Have Your Information Ready: While miracles cannot be guaranteed, having all necessary documentation ready to go is the only way to get coverage fast. This includes details about your daycare’s business operations, employee numbers, payroll, safety protocols in place, and prior claims history in the form of Loss Runs. This allows insurers to assess your risk accurately and offer insurance plans faster.

  3. Be Clear About Your Needs: Clearly communicate specialty coverage types and liability limits you need. Since Robert needed quick coverage, understanding the exact requirements of his business (like coverage limits and additional coverage) made it easier to avoid delays in the quoting and approval process.

  4. Answer Questions Quickly: If you are up against a quickly approaching deadline, answering questions as quickly as possible will go a long way to getting a policy put in place. Underwriters do not like ambiguous answers. Especially if it takes time to get them. They like to understand the risk exposure that they are taking on and providing any additional information needed will help them understand your daycare service better.

Don’t Cut Corners

While you might be in a rush to secure daycare insurance, it's important not to cut corners. In Robert’s case, he could have gone for the cheapest minimum liability insurance policy available again. But that could leave him vulnerable to larger claims of negligence in the future. Working with an experienced specialist in Texas daycare insurance coverage allowed him to secure the child care liability coverage that he needed for peace of mind. Choosing the right combination of coverage ensures long-term protection, even if it means paying a bit more upfront.

If you’re a Texas daycare owner like Robert and need to secure insurance fast, Insurance for Texans can help. True Texas Daycare Insurance specializes in understanding the unique needs of daycare centers and can guide you through the process of finding the right coverage. Click the button below to get a customized plan and ensure your daycare is protected!