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.
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