Mistakes That Increase the Insurance Cost for a Day Care
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Keeping the insurance cost for a day care affordable requires more than just selecting the right policy, it also means avoiding the common mistakes that cause premiums to rise. Whether you run a home‑based day care or a commercial child care center, certain oversights can lead to higher insurance rates year after year. Understanding these mistakes helps you maintain strong protection while keeping costs under control.
Below are the most common errors that increase day care insurance costs and how to avoid them.
1. Not Maintaining Proper Staff‑to‑Child Ratios
One of the biggest red flags for insurers is inadequate supervision. Carriers evaluate:
Age groups
Staff training and certifications
Poor supervision increases the risk of accidents, which makes your day care appear higher risk. State licensing agencies and child care associations publish recommended ratios that you can follow to reduce liability exposure.
2. Lacking Documented Safety Procedures
Insurance companies prefer day cares with clear safety protocols. Mistakes that raise premiums include:
No written incident‑reporting system
Incomplete emergency plans
Missing CPR/First Aid certification
Unsecured play areas
Resources from the Insurance Information Institute explain how strong safety procedures help reduce liability and improve insurance outcomes.
Day cares with documented safety plans typically receive better pricing and policy options.
3. Inaccurate or Outdated Capacity Information
Sometimes day care owners underestimate or overestimate their licensed capacity. Both errors affect your day care business insurance quote:
Under-reporting can create coverage gaps
Over-reporting increases premiums unnecessarily
Always use your state‑licensed maximum capacity and daily average attendance when applying for insurance.
4. Poor Facility Maintenance
Insurers often inspect child care facilities before issuing coverage. Common issues that increase pricing include:
Broken fences
Playground hazards
Missing smoke detectors
Poor lighting
Cluttered classrooms
Worn flooring
Simple upgrades can significantly improve your risk profile and lower your premium.
5. Not Working With a Specialist in Day Care Insurance
Many day care owners unknowingly overpay because they work with general insurance agents. Specialists, on the other hand:
Know which carriers insure child care businesses
Understand safety and licensing requirements
Provide accurate limits and endorsements
Shop multiple carriers for the best rate
Specialised guidance reduces the chances of overpaying or being under insured.
Get the Right Day Care Insurance at the Right Cost
Not all insurance carriers understand child care risks, and mistakes like poor maintenance, incorrect ratios, or missing safety protocols can raise your premium. Wexford Insurance partners with top-rated carriers that specialise in day care coverage, helping owners secure the right limits, deductibles, and policies, at the best possible price.
👉 Request your day care business insurance quote from Wexford Insurance today and make sure your children, staff, and business are fully protected.
