Own a Daycare Blog » Insurance http://www.ownadaycare.com/blog Just another WordPress weblog Fri, 19 Mar 2010 21:32:12 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 The insurance you need in putting up a day care center http://www.ownadaycare.com/blog/the-insurance-you-need-in-putting-up-a-day-care-center http://www.ownadaycare.com/blog/the-insurance-you-need-in-putting-up-a-day-care-center#comments Thu, 30 Jul 2009 00:43:55 +0000 Mary http://www.ownadaycare.com/blog/?p=753 Related posts:]]> Getting insurance is not easy. Besides from growing expenses now days, people do not get why they have to pay for something that you may never even use. But then again availing of the insurance program can be a good prevention of a higher cost. Well, you can really never tell. So be might as well prepared.

As a new business owner, you may encounter a lot of problems starting up. New challenges may arise daily in your day care center. It is therefore a must that your business be protected from risk or any liability. It can keep you worry-free as a business owner. The insurance you can get can cover everything from child injury to damage of property. It’s better to have protection before any of these things happen.

In being a day care center owner, there are different kinds of insurance that you need to avail. Here is a list of the insurance that you may consider being a day care operator.

1. Business Insurance. Your day care center is a business, after all. Business insurance protects you from greater losses in the future. It protects your current and future employees, as well. Having your business insured will protect you and your investments in the long run.

2. Accident, fire and other basic insurance. These kinds of insurance protect your home or business place. Some insurance agencies include this in basic business packages together with other special types of insurance.

3. Childcare liability Insurance. The insurance company may include this in the business insurance but some have a separate insurance for this. Furthermore, there are different types you can get depending on the kind of day care that you run. Try shopping around to get the best insurance suited to your business. This kind of insurance cover injury, legal costs and even losses. Day care liability insurance, however, is not the same for home day care and commercial day care centers. Inquire your insurance agency now for you to get the best deal there is.

4. Insurance for Omissions and Errors. This kind of insurance gives the maximum coverage for the day care center you own. It covers personal injury, negligence, field trips and unforeseen circumstances. You can get $50,000-$100,000 for medical expenses of the kids due to accidents and even accidental death.

Always remember that it’s best you have everything insured. Even the simple things such as auto insurance may be very beneficial to you in the future. Canvass around different insurance providers and inquire about the different business package deals and the important documents you have to submit. Each type of insurance has a different set of requirement and may also depend on where you are located. Getting this protection will ensure your stay in the business no matter what. So why think twice about getting coverage? It can be more beneficial than you can actually imagine!

Less Taxes for Home day Care Center
Instead of leasing or renting a business space, why not run your day care center in your own house? If you have been babysitting your friends’ and relatives’ kids and you’re very fond of being with kids, why not consider setting up your own home day care business? Aside from doing the things you love, you’ll be able to earn money too. The home day care business enjoys a lot of tax deductions as well. Here are some tips on how to avail of those deductions by meeting the IRS requirements.

1. The day care center you own must take care of clients.

2. You must’ve met all the requirements set by your state which then entitles you to a license.

3. Using your own house as your business place has benefits that you can actually use. Here is how you can have the tax deductions.

The portion of the house you will be using for your business can have tax deductions. A formula in getting the deduction is stated below.
% used for daycare: the total area of your house you use for the day care over the total area of your house

If your business operation is from 9 am to 5 pm, the following formula can be used to know how much daily are your business hours.

Total hours for day care: number of business hours
8760 hours, 8764 during leap years

Then you use the formula below to get the amount of your tax deductions

Tax deduction = the total income in your household x % used for daycare

By doing the simple math, you can avail of the tax deductions for your home business.

Also, you can deduct the food and other consumables. Keep your receipts to know what items you must declare and to save some expenses. Anything that you use is considered consumable: toilet paper, microfiber diapers, laundry soap and even table napkins as long as you use the items for business purposes. Just multiply the expenses with the formula above.

There is also a deduction for utilities and supplies. Having children means higher consumption of electricity and water. Electricity and water are services you used for business and thus can be declared. Simply multiply the total expenses in a year with the formula above. If the line is intentionally installed for business purposes, it can actually be fully deducted.

Then, you can still declare the work made on home services. Any remodeling or renovation made for purposely for business can be a tax deduction. Keep the receipts you have for house repair or even simple things such as plumbing and cleaning.

This is only one of the many advantages of having your day care center operated at home. It gets you to pay less tax. All you need is the knowledge about your rights as a home business owner. Just spend a little time in calculating when the taxes come and you’ll be rewarded and relieved of incoming problems. Remember to keep all the receipts from any purchases. This little hassle can give you so much in the end!

See: How to start a daycare center

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]]> http://www.ownadaycare.com/blog/the-insurance-you-need-in-putting-up-a-day-care-center/feed 0 Get Insurance For Your Day Care http://www.ownadaycare.com/blog/get-insurance-for-your-day-care http://www.ownadaycare.com/blog/get-insurance-for-your-day-care#comments Mon, 23 Mar 2009 23:10:19 +0000 Mary http://www.ownadaycare.com/blog/?p=379 Related posts:]]> Every daycare should have an insurance. Before your daycare becomes operational, make sure that your business and its services is covered by insurance. This insurance will be very beneficial in protecting you, your employees and the business in case of fortuitous events, accidents and liabilities.

There are different insurance policies that you can choose from. Each one is different from another depending on the coverage that it provides. You might need to get an insurance that would protect you and your business from unforeseen eventuality. During the admission process, the parents should be required to fill out daycare forms and submit medical records for the child to make sure that any medical needs are met and to prepare for the medicines that can counter allergic reactions. These forms should be accomplished and duly signed by the parents to make sure that they understand and agree to the terms and services that you will be providing in the daycare. In addition, you can also request a copy of immunization records of the child with the physician’s signature. Doing this can protect you from possible lawsuit in the future. As you already know, children are naughty and rough, and accidents are sometimes unavoidable. In this case, liability insurance can be extremely helpful.

Each state can impose different rules and guidelines on child care. This is the reason why you need to procure necessary licenses and permits from your local government before your daycare center can start to operate. Insurance is one of the requirements that you need to have. Insurance gives you medical coverage. It’s a big relief covering medical expenses of the children in cases of accidents. However, you also have to consider the limitations of the coverage. The accident should be covered by your insurance policy. Usually if the accident happened within your daycare premises, it can be automatically covered. Liability insurances do not cover child abuse but it pays the damages in case you lose in court.

The amount that you are willing to pay for the insurance determines what liabilities are covered. The more money you pay for the insurance, the wider the scope of the coverage becomes. If in the event that you need to pay for medical expenses of a child that has been hospitalized, the insurance will cover the payment to the extent of the insurance’s coverage. If the bill is more that what is covered by the insurance, you need to pay it by your own. It is always wise to have a high premium on your insurance since medical expenses can be very expensive.

If you feel that you are ignorant on the different coverage of the insurance, feel free to seek advice from lawyers or from your insurance company. They can discuss to you the details as to the differences of these insurances and be able to suggest the type of coverage that is suited for your business. You don’t have to be thrifty when it comes to your daycare insurance. The insurance can give you a peace of mind as you know that your business and the children are in good hands.

See: How to start a daycare business

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]]> http://www.ownadaycare.com/blog/get-insurance-for-your-day-care/feed 0 Reducing Liability Insurance Through Daycare Franchises http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises#comments Wed, 28 Jan 2009 00:55:46 +0000 Mary http://www.ownadaycare.com/blog/?p=172 Related posts:]]> Daycare center is perhaps the type of business that is most sensitive to liabilities arising from the fact that their clients are children who are very much prone to accidents and injuries, both physical and emotional. The expenses for damages in cases of negligence or inattentive staff, especially when the injury sustained is of permanent nature, could go sky high. We are aware that parents will tirelessly pursue compensation for any injury their children sustain while in a daycare center.

Studies have shown that accident is the leading cause of death among children between birth and five years of age. Accident is also the leading cause of emergency room cases of non-fatal injuries among children. A big number of children are permanently disabled every year due to accidental injuries. And this kind of accidents do happen to children whether they are at home or in a daycare centers.

Children, by nature, are injury-prone as they are fragile but insistent. When they fall, they keep on standing up and repeat again and again what they were doing that caused the fall. They tend to climb everything within reach and grasp things that caught their fancy. Even if you watch them attentively, a slight distraction on your part could mean an accident resulting to injury.

No parent will admit that it is her child who is at fault because a child is a child. It is always the fault of the person providing care to the child. For this reason, a liability insurance will free the owner of the daycare center from obligations and expenses. It is also for this reason that premium for liability insurance for daycare centers is very high. You really have to shell out a lot of money to buy the protection you need in running your daycare center.

Daycare business franchising is an alternative to spread the cost of home childcare liability coverage over a large number of franchisees, thus reducing the premium paid for by individual businesses. Instead of getting an individual daycare liability insurance for your own home daycare center, the franchise will be getting the insurance coverage for all franchisees, thus getting a hefty discount in the process. The individual franchisees will then pay the franchise their share of the insurance premium.

A daycare business franchise also helps the member daycare centers on such matters as training of personnel to prevent accidents and injuries to the children. They can also provide legal assistance should a member daycare center be involved in costly litigations for damages resulting from accidents and injuries.

Because of exposures to situations where liability may arise such food-borne pathogens and illnesses due to contact with other sick children, a daycare center will be protected from expenses arising out of litigations and payment of damages if it is adequately covered by a liability insurance secured by a franchise.

See: How to start a daycare

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]]> http://www.ownadaycare.com/blog/reducing-liability-insurance-through-daycare-franchises/feed 0 Childcare Insurance http://www.ownadaycare.com/blog/childcare-insurance http://www.ownadaycare.com/blog/childcare-insurance#comments Thu, 08 Jan 2009 01:20:34 +0000 Mary http://www.ownadaycare.com/blog/?p=127 Related posts:]]> Daycare centers is a flourishing business as more and more parents work full time and as such they have to leave their children to the care of somebody else. Once children are brought into a daycare center, they become the center’s responsibility. The center has liability should anything happen to the children under their care like a child getting hurt in play or in activities.

Insurance is very important in a daycare center. It is important both for the owner and the business itself. A liability insurance will cover any accident that may befell any child within your premises during the time that they are under your care and responsibility. Your business and your personal resources could be wiped out entirely should an accident occur in your daycare center that is not covered by any insurance. The cost of litigation and the possible damages you have to pay could be more than what you can afford.

Experienced daycare providers know how to protect themselves from liabilities. They require parents to submit the child’s medical records so they will know if the child has allergy or any serious illness that will require treatment or special attention. Parents are required also to submit the immunization record of the child with the doctor’s signature. These are all intended to avoid any problem that may question the center’s liability thus avoiding future lawsuits. However, accident when children are involved in any activity could not be entirely avoided. This is when a liability insurance comes in handy.

Most states require childcare center to operate only if they have liability insurance. They are well aware that the owners of childcare centers may not be in the position to handle the financial obligation in the event of an accident involving one or more children. A home based child care center has a very limited capitalization and failure of the owner to pay for hospital bills of children who are involved in accidents will be disastrous to both the childcare center owner and the parents concerned.

Insurance liability coverage has its limits, depending on what kind of coverage you get and how much you pay. You will pay more for a higher insurance coverage. Anything that is beyond your insurance coverage will be your own responsibility. If your insurance provides only for $100,000 coverage per child and the child’s hospital bill is $120,000, you will have to pay for the $20,000 difference.

The cost of liability insurance will depend on the kind of coverage you will choose and the number of children enrolled in the daycare center. Different insurance companies offer different amount of premiums but make sure you deal only with well-established and reputable insurance companies. It is also a good idea that you seek legal advice before getting an insurance policy. Your lawyer can explain to you some confusing legal terms and can help you decide on what kind of insurance coverage will be best for your daycare center.

See: How to start a daycare

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]]> http://www.ownadaycare.com/blog/childcare-insurance/feed 1 Opt For Daycare Franchises And Reduce Your Insurance Premiums http://www.ownadaycare.com/blog/opt-for-daycare-franchises-and-reduce-your-insurance-premiums http://www.ownadaycare.com/blog/opt-for-daycare-franchises-and-reduce-your-insurance-premiums#comments Fri, 02 Jan 2009 01:25:14 +0000 Mary http://www.ownadaycare.com/blog/?p=47 Related posts:]]> One of the most liable types of businesses include day care centers. Liability in this regards refers to the cost of damage that is incurred in the event of negligence or inattention of the care taker which can either be extreme most especially if the damages affecting the child or children are dangerous or could have dangerous side effects on their minds, body and even growth.

Day care centers are therefore high-risk businesses that could cost you huge amounts of money if you are negligent. It is therefore a given fact that juries are more sensitive to cases wherein a child is reported to be suffering and of course the parents of these children are altogether zealous in ensuring that they are properly compensated regardless of whether or not the condition or injury is risky and serious in nature.

Franchising a day care business offers a way to spread the cost of acquiring home child care liability coverage over greater numbers, reducing premiums for individual businesses. Franchise companies offer the added benefit of sharing their collective expertise in prevention of accidents or illnesses with day care operators.

Many reports have shown and even proven the fact that accidents are a leading cause of death among children between the ages zero to five years. It has also been reported that accidents are the leading cause of all non-fatal injuries treated in emergency rooms all over the world.

Every year, because of the negligence of their care takers or guardians, about three thousand children are injured or killed because of television sets that fall on their heads. About ninety thousand children are disabled from accidental injuries which happen every year. Even so, some family pets could even pose great threats to children who treat them harshly or roughly.

Home child care business liability is essential to cover liability for a child’s welfare in a home day care center. Children are, by nature, very much prone to injuries. As soon as they take those first steps, they are more likely to fall, to climb on things, to slip away from watchful eyes. They tend to be persistent and try again if their first efforts fail.

Children are amazingly resilient, yet amazingly fragile. They seem to have the ability to bounce and get up and do it again if they fall. On the other hand, an unaware adult picking a child up by the arms may pull his or her shoulders out of sockets.

Home child care liability insurance covers actual damages due to negligence or lack of diligence. Also covered are possible long-term damages for a child whose care requirements may change due to an injury. Criminal acts perpetrated by the business person or any other household member are never covered by Home Child Care Liability insurance.

A liability policy covers illnesses caused by food-borne pathogens, and for illnesses contracted by exposure to another sick child in the care program.

Because legal responsibility is such a serious and costly consideration, franchised day care centers offer a viable and often less expensive means of protecting the operator’s assets from the threat of a lawsuit.

See: Start a daycare business

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