Mary had been talking to other daycare center owners in the Central Texas area. They were all venting about what was happening to their business expenses. Especially their business insurance costs. Mary's wasn't set to renew for four months, but the stories had her worried that her premiums were going to go up substantially. She wasn't sure how she was going to cover a major increase.
Mary takes immense pride in providing a nurturing environment for the children in her community. She has run a fantastic child care business for many years in Waco and had a stellar reputation. But her fears of the new rates skyrocketing were making this successful business owner consider if she should sell her daycare operations. However, she was determined to find a more affordable solution without compromising on coverage. Mary called us as she began her quest to navigate the complex world of daycare insurance policies and find a workable solution.
The Importance Of Securing The Right Insurance For Day Care Centers
Securing the right insurance for child care centers is vital for several reasons. For Mary, understanding the importance of financial protection against physical injuries, lawsuits, and accidental injuries in the childcare industry was a game-changer. Proper insurance provides peace of mind, allowing daycare operators like Mary to focus on their primary responsibility—caring for children. Having a promise of certainty if a claim made by a family caused unexpected legal expenses, was worth the cost of coverage for upgrades. Having comprehensive coverage allowed Mary to rest easy knowing that her daycare's future is protected from potential financial losses even if she wasn't truly at fault.
Understanding Different Types of Insurance For Day Care Centers
Navigating the various types of coverage recommended or required for daycare centers can be overwhelming. Mary learned that her daycare needs general liability insurance to cover accidents and injuries, professional liability insurance for claims of negligence, property insurance to protect her building and contents, commercial auto insurance for any business-related transportation, and abuse and molestation insurance for safeguarding against such serious allegations. Each type of coverage plays a important role in protecting different aspects of her daycare business operations.
Property Insurance For Daycare Centers
Mary discovered that property insurance options for daycare centers includes not only building coverage, but contents and outdoor equipment coverage as well. Commercial property insurance protects the physical structure of her daycare first and foremost. While she no longer has a mortgage on the building and required to have this coverage, she has maintained adequate coverage limits to make sure that her building could be replaced if a Texas hail storm was to destroy it.
She was also pleased to know that her contents coverage insures the items inside her building along with her outdoor equipment were covered. Personal property insurance extends protection to playgrounds and other external assets when the commercial property insurance is done correctly. These coverages are essential based on her business's location in Waco where storms can cause havoc in the spring and fall.
Medical Expenses Coverage Through General Liability
General liability insurance for daycare centers, like Mary’s, includes medical expenses coverage for slip and fall accidents. Most daycare business owners realize this coverage is a cornerstone of their daycare insurance packages. This coverage is beneficial as it addresses medical costs resulting from accidents at the daycare, providing a financial safety net for both the business and the affected parties. It covers immediate medical expenses, helping Mary manage unforeseen incidents without bearing a significant financial burden.
Professional Liability Insurance
Professional liability coverage is essential for daycare workers, covering lawsuits arising from professional negligence or mistakes in services. The most common cause of this is negligent supervision of the children in their care. Mary realized that this type of insurance is important as it protects her and her staff from the financial impact of legal proceedings, ensuring that they can continue providing high-quality care without the fear of potential lawsuits draining their resources through legal defense costs.
Commercial Auto Insurance
For daycare centers like Mary’s that transport children, business auto insurance is indispensable. Commercial Auto insurance includes property and liability coverage for business-owned vehicles. It covers damages and potential lawsuits resulting from accidents, injuries to passengers, uninsured or underinsured driver coverage, collision damage, and comprehensive damage. If non-owned auto insurance is included, it even covers employees using their own cars to run errands on behalf of the business. Mary found that having commercial auto liability coverage is critical to protecting her business during transportation activities.
Abuse & Molestation Coverage
One topic that many people find uncomfortable is accusations of abuse in a daycare facility. Mary understood the importance of abuse and molestation insurance for her daycare. This coverage provides financial protection against abuse accusations, covering damages and legal costs that can arise from these types of claims. Although no one thinks it will happen to them, having this insurance from the start is vital for protecting her daycare’s reputation and ensuring the safety of the children.
Five Ways To Get The Best Insurance Rates For Your Daycare Center
Mary understood the need for all of the daycare insurance coverages that we have outlined so far. But she was also trying to keep her annual premiums to the insurance company as low as possible. In talking with our experienced daycare insurance specialist, she discovered five effective ways to secure the best insurance rates for her daycare. Some of them seemed like common sense and others were a great reminder of best practices.
- Preventive Training for Staff: Implementing regular training sessions for child abuse prevention training to minimize risks is a great way to help keep costs down and protect the children in her care.
- Not Filing Small Claims: One of the biggest ways to keep premium costs contained is to not file claims on your policy for small amounts. The frequency of the claims that your commercial daycare center files with the insurance company has a profound effect raising your rates. It is better to handle those expenses yourself.
- Correctly Reporting Information: When looking for new coverage, the daycare insurance company is going to ask questions and require information from you. These items can be annual revenue, safety training plans, or even payroll amounts. Correctly and quickly reporting this information will secure the most accurate and best rate possible.
- Keeping Safety Equipment Up to Date: Your childcare center will have safety equipment that is required by the state, recommended by the insurance carriers, or simply considered a best practice for you to have on hand. Keeping this equipment up to date and in good working order will help keep premiums lower.
- Understanding Your Total Cost of Risk: When we think of the cost of insurance, we typically only focus on a premium amount. But you also have money at risk if a claim is made against your daycare policy. Sometimes, it is better not have your entire future at risk if a claims has to be made.
Mary understood that these five strategies would help her keep daycare insurance policy costs lower while also keeping an eye on her future as well. She could now see the need for adequate policy limits for coverage along with choosing policy options that make sense for her overall risk tolerance.
What To Consider When Selecting An Insurance Policy For Your Daycare Center
When selecting an insurance policy, Mary considered her daycare’s unique offerings, activities, and needs. She was thankful for customizable policy options that allowed her to choose coverage options like field trip insurance, special events liability coverage, lost income coverage, and workers' compensation insurance. True Texas Education Insurance helped Mary find the best coverage for her specific needs, ensuring comprehensive protection for her daycare.
Working With Insurance For Texans To Get Coverage
Insurance For Texans specializes in helping Texas daycares like Mary’s protect themselves with customized insurance plans. Ensuring that policy coverage matches the scope of activities and risks is essential, and an experienced daycare insurance agent can find the right coverage at the best price. True Texas Daycare Insurance, available exclusively at Insurance For Texans, offers tailored solutions to meet the unique risks faced by daycare centers.
Are you a Texas daycare owner struggling to find the right insurance coverage? Click the button below to discover how Insurance For Texans can help you secure the best rates and comprehensive protection for your daycare. Don’t let high insurance costs jeopardize your business—reach out to us today and ensure your daycare’s future.