Every business is exposed to at least some risk, but childcare centers face an especially significant number of potential risks because of the services they provide. As a result, there are many types of insurance that these businesses should have.
General Liability Insurance for Common Risks
While childcare centers certainly are exposed to some specific risks, insurance coverage selection should begin with basic risks that are common to many businesses. Specifically, general liability insurance is one of the first protections that any business should procure.
One of the most important protections that general liability insurance provides is coverage for accidents that take place on company property and result in third-party injury. Often, these are called slip-and-fall accidents because they arise from simple missteps like slips and falls.
Any business can have a customer fall and get hurt on the property, but the risk increases significantly when a business welcomes a bunch of young children into its facilities. While adults can certainly slip, trip, or otherwise fall, toddlers and elementary age children are much more likely to fall and get hurt because they’re less coordinated.
Should a child or parent be injured while at a childcare center, general liability insurance will likely help cover any legal costs, medical costs, or other expenses associated with the injury.
Workers’ Compensation Insurance for Employees’ Injuries
Workers’ compensation insurance protects against job-related injuries that employees sustain. This too is a common risk that any business with employees should protect against, but it’s particularly prevalent in childcare settings — where workers regularly bend over to assist children and sometimes pick children up.
Bending over and lifting can cause back strains and other problems, and the risk of injury is especially high when lifting things that move. Whereas postal workers can carefully get into proper lifting position to minimize the risk of injury, childcare workers rarely have this opportunity. They often have to lunge or lean to get kids, which can lead to injuries.
Should a childcare worker sustain an injury while helping a kid, workers compensation would help cover a portion of the worker’s lost wages and their medical costs.
Abuse and Molestation Insurance for Potential Allegations
No matter how well a childcare center vets and trains its staff, every center should have abuse and molestation insurance in case someone claims an employee acted improperly with a child. Should such an allegation be made, the employee might be held responsible — but the business will likely be sued as well.
Not only does abuse and molestation insurance help protect centers in the event of an actual incident, but it also helps shield a business from the potential cost of a false allegation. Even an untrue allegation can be expensive to defend a business against, but liability insurance coverages help pay legal costs regardless of how a lawsuit ultimately ends.
As this becomes an increasingly prominent risk, abuse and molestation insurance is a coverage that every business which has employees interacting closely with others — and especially with children — should carry.
Commercial Umbrella Insurance for Potential Tragedies
Commercial umbrella insurance is another liability protection that can help pay covered legal expenses, but this insurance acts as a supplemental form of protection. A commercial umbrella policy can supplement general liability, abuse and molestation liability, and other types of liability insurance simultaneously.
Childcare centers should have commercial umbrella insurance in case the worst tragedy happens. If a child were ever to die while in a center’s custody, the resulting lawsuit could be lengthy and expensive. A commercial umbrella policy might help cover some or all of the associated costs.
If you need insurance for a childcare center, contact Metropolitan Insurance.