Daycare and Childcare Center Insurance

In short

Childcare centers usually need general liability, abuse and molestation coverage, professional liability, commercial property, workers’ compensation and often auto and employment practices coverage. Many standard insurers limit or exclude abuse claims, so specialist insurers are often needed. In California, centers are licensed by CDSS Community Care Licensing. SF Coverage reviews childcare renewals for free within three business days and shows how your forms treat abuse claims.

Who sets your insurance requirements

Landlords, churches and schools that host programs: General liability with the owner as additional insured, abuse coverage and waiver of subrogation.
Government subsidy and contract programs: Contract insurance terms with specific limits and endorsements.
Parents and enrollment agreements: Confidence that injuries and supervision claims are covered, often reflected in disclosures.
Transportation and field trip partners: Auto coverage and certificates when children are driven or taken off site.

Coverage childcare centers usually carry

General liabilityCovers injuries to children and visitors on the premises and during activities.

Abuse and molestationCentral for any program caring for children. Often limited or excluded by standard policies.

Professional liabilityCovers claims about supervision, care and educational services.Commercial propertyCovers the building or improvements, furniture, equipment and business income.Workers’ compensationRequired in California for teachers, aides and staff, who lift children all day.Commercial autoNeeded if the center transports children for school runs or field trips.Employment practices liabilityCovers staff claims about hiring, discipline and termination.

Exposures to get right

Supervision and injuries

Playground falls, bites and choking incidents are the most frequent claims.

Abuse allegations

Allegations can arise years later, so coverage form and limits matter a great deal.

Transportation

Driving children multiplies auto exposure and insurer scrutiny.

Staff injuries

Lifting children and working on the floor drive workers’ comp claims.

In California

Childcare centers and family child care homes in California are licensed by the Department of Social Services Community Care Licensing Division, and staff must receive criminal record clearance before contact with children.
California Health and Safety Code section 1597.531 requires family child care homes to carry liability insurance or a bond, or keep signed parent affidavits acknowledging they do not.
Childcare workers are mandated reporters of suspected child abuse under the California Child Abuse and Neglect Reporting Act.

How SF Coverage works for childcare centers

Contracts checked before you signEvery insurance clause in a lease, subcontract or client agreement cited and checked against your policy wording.Certificate requests checked the same dayEach holder request matched to your policy the same business day when it arrives by 3 pm Pacific, with a complete request drafted for your broker.Renewals explained line by lineA free second opinion within three business days, with every change in premium, limits and exclusions explained before you decide.Audits reviewed before you payWorkers’ comp audits reconciled to your payroll and subcontractor records, with the dispute deadline tracked.

Have these ready

CDSS license number and licensed capacity
Ages served and number of enrolled children
Staff count, screening and training procedures
Whether you transport children and how
Lease or facility use agreement with insurance section
Current policies and five years of loss runs

Insurance for childcare centers, answered

Why is abuse and molestation coverage so important?

Abuse allegations are among the most serious claims a childcare center can face, and they can surface years after the care. Many general liability policies limit or exclude them. Specialist insurers are often needed, and they will ask about screening, supervision ratios, training and visibility in classrooms. We show exactly how your current forms treat these claims.

Do California childcare centers have to carry liability insurance?

Family child care homes must carry insurance or a bond under Health and Safety Code section 1597.531, or keep signed parent affidavits. For centers, licensing rules focus on health, safety and staffing, while leases, host sites and subsidy contracts usually set the insurance requirements. Confirm current rules with CDSS. We check your agreements for those requirements.

Why did our childcare insurance go up?

Increases often come from fewer insurers writing childcare, higher abuse claim costs, larger enrollment, added locations or transportation, and your own claims. Some increases are rate driven while others follow exposure changes. A free renewal second opinion shows which part of the increase came from abuse sublimits, enrollment, new exclusions or rate.

Does our policy cover field trips and transportation?

General liability usually covers supervised activities off site, but driving children needs commercial auto coverage, and staff using personal cars can create gaps. Some policies limit coverage for swimming or other higher risk activities. We review your forms against the activities you actually run and show where coverage is unclear or missing.

Will you review our childcare renewal while we keep our broker?

Yes. The renewal second opinion is free and takes three business days from receiving the renewal offer and expiring policy. SF Coverage reads abuse and molestation limits, sublimits and exclusions first, then premium and deductibles. Your current broker stays in place. Every SF Coverage proposal shows its compensation.

General information. Coverage depends on the policy an insurer issues.

Insurance for childcare centers and preschools