Home Daycare Insurance Facts: Protecting You & The Children

If you operate a daycare out of your primary residence, home daycare insurance will protect both you and the children you care for. Home business insurance is necessary for any person who operates a business in his or her home. However, a business that deals with children will have a unique set of needs. Home daycare insurance is specifically tailored to deliver adequate protection for your business.

Benefits for You and Your Business

Tax deductible:  Business insurance is largely tax deductible even if the business is operated in a home. When filing, just determine which portion of your home is a dedicated workspace. This same portion of your insurance will be tax deductible. For example, if you use 20% of your house for your daycare, 20% of your home owners insurance may be tax deductible. If 1 out of 10 times you drive it is for your business, 10% of your auto insurance may be tax deductible.

Protection from liability:  Being alone with children poses a systemic risk to your financial security. A single lawsuit alleging abuse can lead to multiple lawsuits against you. Protect yourself using liability insurance. To reduce the expense on your premium, implement best-practices such as a strict employee handbook and risk-management programs where at least two adults are always present.

Protection from property damage:  Running a daycare pretty much guarantees property damage due to the normal wear and tear of a room full of children. Home daycare insurance can reimburse you for losses due to damage to your home. Property insurance may also reimburse you if a claim prevents you from operating business for an extended amount of time. For example, if your workspace is flooded, and you must close for one week, you may be able to gain reimbursement.

Additional factors: Do you drive children in your personal car? Your auto insurance may not be sufficient to cover potential losses. Consider asking your insurance agent about additional coverage that you may need as a result of your business model.

Benefits for Your Children

Medical care reimbursement: With children, accidents happen. If one of your clients suffers an injury while at your daycare, your insurance may cover part of the cost.

Protection from abuse and bad business practices:  Maintaining adequate insurance requires good business practices on your part. It is nearly impossible for a business with a history of bad practices to secure and keep insurance. By implementing handbooks and meeting safety guidelines as required by your policy, your daycare will be a safer place for all of your clients.

Confidence and security for parents:  Leaving a child under the care of another person is frightening for many parents. You give parents confidence when you show them you are licensed and insured. This will provide an additional benefit to you when you market your business. You will have an immediate advantage over a business that does not maintain proper insurance.


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