Insurance is expensive. And it is getting more expensive every month it seems. When Dave called our office, he started by asking more questions than the normal business owner does about their business insurance policy. He was worried about more than just price.
Dave had a bad claim experience during the last hail season. When it was all said and done after the claim, it felt like his policy had hidden exclusions that took away coverage leaving him with a sizable bill. Roofs are expensive and he thought he had adequate coverage. He wasn't completely sure how it happened, but he knew he needed help.
Dave had realized that trying to figure all of this out on his own was overwhelming and confusing. He wanted someone who actually understood daycare insurance policies to help him make the best decision for his business rather than just selling him a piece of paper with the lowest price!
Insurance Costs Are Rising and Some Policies Are Harder to Get
The first thing Dave noticed was how much his premium had increased. It was a big jump from last year, and that was after his dismal claim payout. He started looking around and found that he was not alone. Many daycare owners in Texas were dealing with the same problem.
You don't really need a national survey that shows that most childcare providers have seen their insurance costs go up. The cost of insurance coverage for everything seems to have blown up. Daycare business insurance has felt the brunt of this phenomenon.
In previous years, Dave thought just finding the cheapest option was the best way to roll. And then that roof claim popped up from the storm rolling across the High Plans.
In this moment, Dave realized that saving a little money upfront might not be worth it if he ended up with a policy that didn’t actually protect his business. He decided this year that evaluating his potential risks matters more than chasing the lowest insurance premium possible.
What Coverages Does a Texas Daycare Actually Need
Dave started looking at his policy and realized there were different types of coverage. Some he had heard of before like property coverage and general liability protection. But he was now understanding that there are different types of liability insurance coverage. But it read like a foreign language to him.
General liability is the basic coverage that most businesses have if they are being reasonably smart their liability risks. It helps if is a slip and fall of a visitor to the daycare that creates medical expenses. It also covers property damage that can happen to someone else's stuff on your business property.
Professional liability is different, and he was unfamiliar with it. Professional liability insurance protects against claims that the daycare doesn't provide proper instruction, care, or supervision of the children. If a parent said the staff didn’t watch their child closely enough or that a teacher handled a situation poorly, this specialized coverage can help with both legal defense costs and any judgements that might be issued.
Dave saw abuse and molestation coverage. This was something Dave had never really thought about before. He didn't want to think about it to be honest. He didn’t think anything like that would ever happen at his daycare. But he learned that even false allegations of abuse can cost thousands of dollars in legal fees. Without this additional liability coverage, a single accusation could be enough to shut his daycare down due to the financial burden.
As he looked through his policy, Dave started to feel more confident about his knowledge. He realized that just having insurance wasn’t enough. He needed to know what it covered so he wouldn’t be left unprotected.
Understanding What You Are Buying Is More Important Than Ever
The spark that made Dave begin this journey was his claim gone wrong. He thought he had protection from financial losses when the hail storm blew through Lubbock. His daycare insurance policy indicated that he did have hail coverage which was true. What he didn't account for was that the insurance company had changed his policy terms at a prior renewal.
This practice is common for daycare insurance policies across the state. The insurance providers have tried to reign in claim payments from storms and changed the the way property damage coverage works for daycare centers just like Dave's. They have raised deductibles and as roofs age, they are valued at actual cash value rather than replacement cost. The risk profiles of all buildings across have Texas have changed, and the way business insurance claims are paid has too.
Dave was glad that he was now working with an independent insurance agent that was deeply experienced in all aspects of daycare insurance. He was thankful for understanding his coverage options and coverage limits so that the next storm would take him out!
Work with an Experienced Insurance Professional
Dave decided he didn’t want to guess when it came to protecting his daycare. When he reached out to Insurance For Texans he was introduced to True Texas Education Insurance. This program is designed to understand daycare business owners needs and provide coverage options that meet them.
Instead of struggling to sort through confusing online policies on his own, he worked with someone who actually understood the specialized type of coverage daycares need. Their experienced insurance agents started with questions, and then helped him find the right coverage choices without cutting corners or paying for things he didn’t need.
Now, when Dave gets his renewal notice, he doesn’t have to wonder if he has the right insurance. He knows his daycare is covered and that he made the best choice for his business.
Click the button below to connect with a daycare insurance specialist and find the right coverage for your business today.