Is your business covered? Insurance for child care providers is an important, but often overlooked step to legitimizing and protecting your business. If you’ve had trouble finding insurance coverage for your child care activities, you are not alone. Lately, many insurance companies have decided to discontinue offering coverage for child care businesses because of the unique nature of child care. That is especially true when it comes to family child care providers operating businesses out of their homes. Whether you operate a family child care business or a child care center, insurance companies will approach this as a business venture, and you should too.
The following tips may help simplify the process for you:
1. Enlist the services of a trusted professional
A good insurance plan for your business is not something to quickly shop online for and assume you’re getting everything you need using a DIY approach. Just as you would look for a great electrician to help with a unique in your house, a great insurance agent will have the skillset and depth of knowledge to make sure you’re adequately covered.
2. Find an agent who understands the business of child care
Having an agent is a good start. But having an agent who understands the specifics of your industry and is well connected with the companies who write this specialized coverage is even better. Child care is a niche market, and with national investment gaining traction, you’ll want to take this step to fully cover your business. Seek referrals from other providers or contact the Independent Insurance Agents of Nebraska (www.iian.org).
3. Be honest with your agent
Tell your agent as much about what you do related to child care and the number of children you care for at a time. With a full understanding of your business needs, the carrier can make sure that you are covered and that your business is protected. On the other hand, there are potentially devastating implications to withholding that information. If the insurance company finds out information was withheld, they could, and likely would cancel your policy or a future claim could be denied. When you sign an insurance application, you’re attesting to its accuracy, so withholding information could be treated as insurance fraud. Insurance protects you and your family and is critical for your long-term financial health, so honesty and a great partnership with your agent are critical.
4. Determine the right level of coverage
Insurance carriers offer different coverages, limits, and support services. This is not a one-size-fits-all situation. Be prepared to answer questions so that your insurance partner can customize a package of options for you to choose from to best suit your needs.
Check-in on your current policy, your business may have changed. Download our insurance checklist for your child care business today!
This post is written in partnership with our colleagues at Heritage Insurance. Heritage Insurance is glad to help you with child care coverage, and you can find more information and how to contact them on their website.