Unique Requirements for In-home Daycare Insurance
If you are one of the many people who run an in-home daycare, you may be wondering about the insurance requirements. Don't assume that your homeowner's insurance will cover you in this venture. Almost all homeowners policies exclude coverage for a business run from the home. You will need to have a business policy to cover your daycare.
Adding an Endorsement to Your Homeowner Insurance Policy
While home and business insurance policies are separate, with a small daycare, you can get what is called an "endorsement" to your standard homeowner's policy. In MInnesota, as of this writing, If you are going to have fewer than three children in your care, this is an option. An endorsement will normally only cover the children while they are on your property. It will cover some lost income if your home is damaged and you are unable to offer daycare services for up to a specified amount of time. It will also provide basic liability protection for an accident or injury that is related to your daycare business.
Understanding Claims Made and Occurrence Coverage
If you plan to have more than three children under your care, then you will need to invest in General Liability Coverage. With this type of insurance, you can either buy the "claims made" or "occurrence" form of coverage. With claims made coverage, you will be covered for claims made while you are paying your premiums and the policy is in force. An occurrence policy will cover you for a specific period. This policy is important because the long-term effects of an injury are not always known; a lawsuit can surface a year after the accident. Even if you are no longer providing day care services, this policy will still protect you.
General Liability Coverage
A general liability policy will cover medical care at the time of injury. It will cover any physical injuries, pain and suffering, sickness and even death. If there is damage to someone else's property, then it will cover that too. It will pay for your legal defense. Even if the case has no merit, it will still need to be defended.
In the event that you lose a lawsuit, this policy will pay awarded damages up to the liability amount. This policy will also cover family members who live or work within the home too. Additionally, should you take the kids on a field trip, it will cover you at another location.
Don't be one of the many caregivers who assume their homeowner's policy will cover them. You can avoid this costly mistake by getting the right coverage. Call Insurance Advantage today for a consultation. Phone: 952-746- 5770...Ask for Kim, Teryl or Steve.
