What Kind of Insurance Do I Need for a Daycare Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 hour ago
- 3 min read
Running a daycare business involves caring for children, managing staff, and maintaining a safe environment. With so many responsibilities, the right insurance isn’t optional — it’s essential. Whether you run an in-home daycare or a licensed childcare facility, proper coverage protects your finances, your staff, and the families you serve.
Below is a complete guide to the most important insurance policies your daycare business needs.
Essential Insurance Coverages for Daycare Business
General Liability Insurance protects your daycare from common risks such as:
Child injuries on your premises
Accidental property damage
Slip-and-fall accidents involving parents or visitors
It is often required for licensing and is the foundation of any childcare insurance plan.
This coverage protects you from claims related to:
Improper supervision
Alleged negligence
Failure to provide expected services
If a parent believes their child was harmed because of a supervisory error, this policy protects your business from costly lawsuits.
Daycares must prioritize safety, and this coverage is critical. It provides protection against allegations of:
Physical abuse
Sexual misconduct
Emotional harm
Even if accusations are false, legal defense is expensive. This policy ensures financial protection during an investigation or lawsuit.
Commercial Property Insurance protects the assets inside your daycare, including:
Furniture
Toys and educational materials
Electronics
Outdoor playground equipment
Kitchen and cleaning supplies
It also covers damage caused by fire, theft, vandalism, or severe weather.
If you own the building, this coverage can include the structure as well.
If you have employees, Workers’ Compensation is legally required in most states.
It covers:
Employee injuries
Lost wages
Medical bills
Rehabilitation costs
Daycare employees work physically demanding jobs, making this coverage critical.
If your daycare transports children — whether in a van, car, or bus — you need Commercial Auto Insurance.
It covers:
Accidents involving daycare vehicles
Liability for injuries or property damage
Vehicle repairs
Personal auto insurance does not cover business-related transportation, so daycare owners must purchase commercial coverage.
Many daycares store sensitive information such as:
Children’s medical records
Parent contact info
Billing details
Staff data
Cyber Liability Insurance protects your business from data breaches, hacking, and online security threats.
If your daycare must close temporarily because of:
Fire
Storm damage
Utility failures
Other covered losses
Business Interruption Insurance helps replace lost income and operating expenses until you reopen.
Umbrella Insurance gives you extra liability protection beyond your primary policies. This can be important because childcare-related claims can be costly.
Why Insurance Matters for Daycare Businesses
Families trust you with their children every day — and insurance helps safeguard that trust. The right coverage:
Protects you from lawsuits
Helps you meet state licensing requirements
Keeps your business financially stable
Gives parents confidence in your professionalism
Get Daycare Insurance Through Wexford Insurance
Wexford Insurance specializes in helping daycare business owners find affordable and reliable coverage. We work with top insurance carriers nationwide to help you meet licensing requirements and protect your business from risks.
Final Thoughts
Choosing the right insurance for your daycare business is one of the most important steps in protecting your staff, the children in your care, and your financial stability. With proper coverage in place, you can operate confidently, meet state licensing requirements, and build trust with parents. Whether you're opening a new daycare or expanding an existing one, partnering with an experienced agency like Wexford Insurance ensures you get tailored coverage designed specifically for childcare businesses.
Contact us today.
