Day Care Insurance Deductibles and Limits: What Owners Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Understanding deductibles and limits is one of the most important parts of buying day care business insurance. These two elements determine how much you pay out of pocket, how much your insurance company pays during a claim, and ultimately, how well your child care business is protected. Whether you run a licensed home‑based day care or a commercial child care center, knowing how deductibles and limits work can prevent costly surprises. Here’s what every day care owner needs to know.
1. What Is a Deductible in Day Care Insurance?
A deductible is the portion of a claim you are responsible for paying before your insurance coverage applies. Deductibles usually apply to:
Abuse & molestation coverage (depending on carrier)
Higher deductibles generally lower the insurance cost for a day care, but they increase your out‑of‑pocket risk. Lower deductibles reduce risk but increase your premium. The key is choosing a deductible that fits your budget and offers predictable protection.
2. What Are Policy Limits?
Your policy limit is the maximum amount your insurance provider will pay for a covered claim. For child care businesses, limits commonly apply to:
If your limits are too low, you may be under insured, especially in severe injuries or legal claims involving children. Many licensing agencies and state regulations outline minimum liability limits for day cares, so be sure your policy meets or exceeds those requirements.
3. Choosing the Right Limits for Your Day Care
Selecting proper limits depends on:
Number of children in your care
Services offered
Staff‑to‑child ratios
Facility type (home vs. commercial)
Previous claims
Licensing requirements
Most commercial day cares require higher limits than home providers because they operate with more children and more physical activity.
4. How Deductibles and Limits Affect Your Premium
Carriers evaluate risk when pricing your day care business insurance quote:
Higher limits → higher premiums
Lower limits → lower premiums
Higher deductibles → lower premiums
Lower deductibles → higher premiums
Balancing these two factors is key to keeping costs manageable while maintaining strong protection.
Get the Right Deductibles and Limits for Your Day Care
Not all insurance carriers specialise in child care coverage, and choosing the wrong deductibles or limits can leave your business exposed. Wexford Insurance partners with top-rated companies that understand day care operations, helping owners secure the right policy structure, limits, and deductibles for full protection.
👉 Request your day care business insurance quote from Wexford Insurance today and make sure your children, staff, and business are fully protected.
