As the recent situation in South Dakota proves, daycares are essential pieces of the economic puzzle to help give working parents somewhere to leave their kids to keep them safe. So when a daycare ignores getting the proper insurance they need to operate safely, they throw much more into chaos than the integrity of their business.

That said, it’s still a cost many businesses would like to avoid if possible. So why is it so important?

Well, that’s where we come in. It’s time to roll up our sleeves and take a close look at the importance of daycare insurance.

Protects Your Finances

One of the main reasons to get daycare insurance is that it helps protect your finances if something goes wrong. For example, if a child breaks their arm falling off playground equipment at your daycare, you’ll want general liability insurance to avoid fronting the cost of the medical bills yourself. Property insurance will help free you up from paying for any damage employees or kids inflict on the daycare building.

You can also purchase insurance like accident or umbrella insurance to help provide an extra financial buffer in the event of more serious accidents your general liability insurance doesn’t cover alone. Purchasing auto insurance is also a must-have if your daycare uses any kind of vehicle in its day-to-day operation.

It’s important to note that you’ll still need daycare insurance if you plan to run one out of your home. If this is the case, you cannot get daycare insurance as add-ons to any personal homeowner insurance you have already (you instead need to purchase it separately).

Legal Defenses

While not every state requires daycares to have insurance, many do. Failing to meet the insurance standards set by your state means your business will get shut down. You could also be subject to harsh fines and/or prison time (depending on the nature of the negligence).

To avoid this, make sure to look up your state laws to see exactly what insurance you are required to have.

Daycare insurance can also provide you the resources to hire a lawyer if your daycare falls under attack from a lawsuit. Plenty of resources online can help you learn more about why you need insurance to counter lawsuits.

Daycare Insurance Can Prove a Useful Marketing Tool

Finally, daycare insurance can prove a great way to help attract families to your business. After all, most families are going to treat your daycare as more professional and legitimate if you have full insurance as opposed to those who only cover the bare minimum (or don’t even do that). This also helps provide them confidence that their child will be safe while in your care.

Blue Skies Ahead

And there you have it! Now that you know all about the importance of daycare insurance, you’re free to run the best daycare you can without fear of costly lawsuits! And if you want to learn more about providing the best protection for your business, make sure to check out the other articles on our website!