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Preparing to start a home daycare business can be intimidating. Here are some daycare licensing tips to help you get prepared to get your business up and running.

Health and Safety

Requirements for daycare licensing in the area of health and safety general include everything from basic hygiene to administration of medication. For example, Idaho’s Health and safety requirements for all child care facilities include: CPR and first-aid certification, communicable disease guidelines, immunization requirements, emergency communication requirements, fire code, food safety, dishwashing and sanitizing, indoor child areas, outdoor child area, diapering and toilet facilities, safety equipment, supervision, fencing, storage of medicine, water supply, hand-washing facilities, facility maintenance, pets, and indoor and outdoor safety.

Background Clearance and Criminal Records Exemptions

In many cases, fingerprint clearances are required for all adults who reside in the home and all adults prior to working in the home. In addition, the licensee’s children may also be required to be fingerprinted when they turn 18 years of age. Exemption may be needed for all crimes except minor traffic violations. In many states, the licensing agency and the licensee are required to inform those who ask if someone in daycare has a criminal record exemption.

Brainstorm Solutions to Daycare Licensing Issues

In most cases you will be given a pre-inspection checklist. Study your pre-inspection checklist carefully. Then create a worksheet that will allow you to list possible issues associated with passing the inspection. On one side of a sheet of paper, list the possible issues. Brainstorm ways to work around or fix the issue. On the other, side of the sheet, create space for possible solutions. As you look through your pre-inspection checklist, jot down realistic solutions. For example, your issue may be that your front yard is on a busy street and you have no fencing, but you can’t afford fencing. The solution might be to prohibit use of the front yard as a play area and instead use the backyard as the play area. You may notice that your cleaning products are stored low, beneath the kitchen sink. Your solution may be to store cleaning products on high shelves and/or put child locks on all kitchen cupboards and drawers.

Maintaining the Daycare License

Realize that in order to keep your daycare license you are responsible for complying with state in home daycare standards and regulations. This will mostly likely include areas like the supervision of children, condition of equipment and materials, child discipline, child to staff ratios, Sanitation practices, and Staff education and training development. Regulations will vary from state to state, but in order to keep the license, in home daycares must maintain a certain level of compliance history for a certain length of time. For example, in North Carolina, programs must maintain a compliance history of 75% for the past 18 months or the length of time the facility has operated. In addition, most licensing agencies will follow up and record your compliance history and annual unannounced site visits are conducted to evaluate compliance.

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How do you reward the children in your care? If you’re rewarding them with food, consider this: “An article published in the December 2005 issue of the Archives of Pediatrics and Adolescent Medicine concluded that policies in schools that allow students to snack frequently; to consume high-calorie, low nutrient-dense foods and beverages; and to have food as incentives and rewards were associated with higher body mass indices in middle-school students”.

While this study doesn’t apply to preschool aged children, as a daycare provider it is still important to know the hazards of using food as a reward and how using non-food rewards.

Hazards of food rewards

When you reward or bribe a child with food, these same children may continue to reward themselves with food later in life. When children are rewarded with treats, they unfortunately associate these treats with happiness or being good. Studies show that associating food with with good behavior or bad behavior has long-lasting effects on children’s food preferences and their eating styles. It also may contribute to overweight and obesity.

“Rewarding children with unhealthy foods in school undermines our efforts to teach them about good nutrition. It’s like teaching children a lesson on the importance of not smoking, and then handing out ashtrays and lighters to the kids who did the best job listening.” Marlene Schwartz, PhD, Co-Director, Rudd Center for Food Policy and Obesity, Yale University

There are many significant advantages of giving children Non food rewards.  Non food rewards set a foundation for healthy attitudes toward food. Non food rewards do not impede a child’s development of natural hunger cues. Recognizing kids with respect and verbal appreciation are superior motivators than rewards of food.  Non-food rewards (like praise and privileges) can also be less expensive than food rewards. In addition studies show that children actually prefer non-food treats! Just ask.

Enforcing policies

Did you know that in some states (Alabama and the District of Columbia) where food rewards for children are prohibited?  There are also many states that discourage rewarding good behavior or performance with food. If you firmly believe in prohibiting food rewards in your daycare or childcare business, be sure to communicate this with staff and parents. Make sure your policies are clear and well documented in your child contract and reiterate your stance when clients sign the contract.

Types of nonfood rewards

Privileges as Rewards: Choosing an activity, going first, sitting next to friends, selecting a book or record, helping the teacher, free time, extra time with a toy or in dramatic play

Group rewards: Extra time outside (recess), field trips, playing special games or watching a special movie, free choice of activity at the end of the day, special theme days

Social Rewards: Acknowledgment for a job well done like words of thanks, praise, and special attention or ceremonies

Gifts: Stamps, stickers, bookmarks, books, balls,  playing cards, magnets, shoelaces, bubbles, modeling clay, bracelets, rings, necklaces, coloring pencils, markers, stencils, erasers, pencil cases, coloring books

Recognition: Trophies, rewards, plaques, ribbons, special letters home.

It is also wise to use a points system in order to provide larger rewards like gift certificates, games, toys, and larger outings like sporting events. Points can be accumulated individually or as a group and may later be redeemed for prizes. Ask children in your child care center about the types of non-food rewards they prefer. Also remember that positive reinforcement goes a long way in reinforcing good behavior.

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When you open your child care center, many of the rules and regulations you will be under are enforced by the state in which you live. Insurance requirements are one such regulation that varies from state to state. However, you should invest in insurance in order to protect yourself, your daycare business, your clients and your employees. It is wise for child care centers to invest in liability, structural, accident, health and workers’ compensation insurance.

Liability Insurance: Liability insurance will protect you in the event you are sued for damages. These damages could include child injuries, pet injuries, accidents, personal injury (libel, slander), damage to your own property, and damage to the property of others. The amount of coverage depends on the particular policy you select. There are other types of liability insurance to consider such as sexual abuse and liability insurance, child abduction liability, special events liability (fieldtrips, fundraisers, etc.) and corporal punishment. Daycare liability can be stand alone or an endorsement on your homeowner’s insurance.

Accident Medical Insurance:  Accident medical insurance is insurance that pays children’s medical bills if they are injured at your facility or during activities you sponsor and the child has no insurance coverage of their own, or their bills exceeds their current medical insurance coverage. Markel Insurance Company contends, “You can think of Accident Medical insurance as a goodwill gesture—by paying a child’s medical bills now, you may be able to avoid a lawsuit later”.

Health Insurance: You may want to provide health insurance for your employees. Many of the basic health insurance plans for employees are those in which your employees directly reimbursed a fixed amount for the services they use most frequently like doctor’s office visits, urgent care, diagnostic tests, hospitalization, and emergency room treatment.

Worker’s Compensation: Many states require that you purchase worker’s compensation insurance if your daycare center has employees.  If you do not have worker’s compensation insurance you may be punished with fines or imprisonment. The good news is that workers compensation premiums are tax deductible as a business expense.

Daycare Business Insurance Resources:

Daycare Insurance Agency Websites

Day Care Insurance Services, Inc.

Morgan & Associates, Inc.

Nationwide Mutual Insurance

Castle Rock Agency, Inc.

Markel Insurance Company

Daycare Insurance Guides

Family Child Care Legal and Insurance Guide: How to Reduce the Risks of Running Your Business by Tom Copeland, JD and Mari Miller [Redleaf, 2004]. This guide is specifically for child care providers to help them with insurance planning and strategies to reduce their daycare business’ risks.

The Business of Childcare: Management of Financial Strategies by Gail H Jack [Delmar Cenage Learning, 2004].  This guide covers a wide variety of financial strategies including how to comparison shop for different types of daycare business insurance.

Consult with the local licensing, regulations, and laws by state to find the insurance requirements for childcare centers.

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