Insurance Requirements for Home and Commercial Day Care Centers
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Whether you operate a licensed home‑based day care or a commercial child care center, meeting the correct insurance requirements is essential. Licensing boards, landlords, state agencies, and parents expect day care operators to maintain strong insurance protection. Understanding what is required helps you stay compliant, reduce liability, and protect the children and staff under your care.
Here are the key insurance requirements for home and commercial day care centers.
1. General Liability Insurance (Required in Most States)
General liability is the cornerstone of day care business insurance. It protects your child care business against:
Injuries to children or visitors
Property damage caused during operations
Almost every state licensing department requires proof of general liability coverage before issuing or renewing a child care license. Day care owners can find state‑specific licensing requirements through sources like their local Department of Human Services or child care regulatory agency websites.
2. Professional Liability (Errors & Omissions)
Professional liability is critical for defending your day care against claims involving:
Improper supervision
Judgement errors
Educational or developmental concerns
Many commercial centers are required to carry this coverage, and more states are beginning to recommend or mandate it for home‑based providers.
Because day cares involve close contact between staff and children, many licensing authorities and commercial landlords require this coverage. It protects against allegations of:
Abuse
Misconduct
Negligent supervision
Even with excellent hiring practices and training, allegations can arise, which makes this protection essential.
Commercial day care centers leasing or owning a building typically must carry property coverage for:
Buildings
Furniture
Learning materials
Playground equipment
Office contents
Landlords often require proof of this insurance before signing a lease.
Home‑based day cares may also need additional endorsements because homeowner’s insurance does not cover business operations.
If your day care has employees, nearly every state requires workers’ compensation. It covers:
Employee injuries
Medical treatment
Lost wages
Even home day care providers with part‑time staff may be required to carry this protection.
6. Commercial Auto Insurance (If Transportation Is Provided)
If your day care transports children, commercial auto insurance is usually mandatory. It covers:
Accidents
Liability
Medical bills
Personal auto insurance does not cover business transportation.
Get the Right Insurance Requirements for Your Day Care
Not all insurers understand day care regulations, and requirements vary by state, licensing level, building contracts, and services offered. Wexford Insurance partners with top carriers that specialise in child care businesses, helping owners secure the right limits, deductibles, and policies needed to stay compliant and protected.
👉 Request your day care business insurance quote from Wexford Insurance today and make sure your children, staff, and business meet every requirement.
