Daycare insurance

Daycare insurance in Canada is a form of business insurance coverage tailored to protect against the unique risks of running a daycare center. 

It includes several key coverages that can be adjusted to your business:

Having these coverages mitigates financial risks and ensures daycare operators can focus on their day-to-day operations.

Need insurance for your daycare center?

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While it’s not legally mandated to have home daycare insurance in Ontario and Quebec, it is highly recommended.

Like with any business, running a daycare comes with certain risks. 

Having these insurances not only protects you from significant financial losses, but also enhances trust with parents, ensuring that you are prepared for any unexpected incidents. 

Given the unique risks associated with childcare, comprehensive insurance coverage is important to maintain a safe and reliable daycare operation, and to financially protect your personal assets. 

So, while it’s not mandatory, obtaining insurance is a smart measure for anyone operating a home daycare.

Note: If you run a daycare center from your home, you may need to make adjustments to your home insurance policy. 

The best way to know what kind of insurance coverage is needed for your situation is to speak with an experienced broker. We can help with that.

Need a daycare insurance quote?

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The cost of daycare insurance can range from a few hundred to a few thousand dollars annually, depending on specific needs and coverage limits. 

Key cost considerations include:

• Your location: Urban areas typically have higher insurance premiums due to increased risks and higher property values.
• Size of the daycare: The number of children enrolled affects premiums. Larger centers with more children face higher risks and therefore higher costs.
• Number of employees: More staff members can increase premiums as each employee adds to the potential liability.
• Type of coverage: Comprehensive policies with higher coverage limits (e.g., for property damage, liability, abuse allegations) cost more.
• Claims history: A history of past claims can result in higher premiums as insurers view these businesses as higher risk.
• Daycare activities: Daycares offering high-risk activities (e.g., swimming, outdoor play equipment) may face higher insurance costs.
• Facility condition: Well-maintained and safety-compliant facilities might enjoy lower premiums compared to those with potential hazards.
• Duration of operation: Established daycares with a proven track record may receive lower premiums compared to new businesses.
• Security measures: Enhanced security features (e.g., surveillance cameras, secure entry systems) can reduce insurance costs by mitigating risks.
• Professional affiliations: Membership in professional daycare associations may offer access to group insurance rates, potentially lowering costs.

An insurance broker can provide tailored advice and help secure you the best rates based on these factors.

Need a daycare insurance quote?

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Liability-specific insurance costs for daycares vary based on factors like location, size, and the number of children you are caring for. 

In Ontario and Quebec, liability insurance for daycares typically costs between $800 and $3,000 annually. However, this varies based on the size of the facility, the number of children, and any additional coverage options.

It’s helpful to get quotes from multiple insurance providers and compare coverage options to find the best policy and price for your daycare.

Our business insurance brokers at KBD will be happy to help. 

Need liability insurance for your daycare center?

Call us.

When looking for daycare insurance, it’s important to find a company that meets your specific needs rather than seeking a one-size-fits-all “best” provider. 

The ideal insurance company for your daycare will offer the right coverage at a competitive rate. 

Here are some key factors to consider:

• Coverage options: Look for insurers that offer comprehensive coverage tailored to daycare needs, including general liability, professional liability, and property insurance.

• Customer service: Choose a company with a reputation for good customer service and support, ensuring that any claims or issues are handled efficiently. Pro tip: Consider checking out their Google reviews for an idea of customer satisfaction.

• Cost: Compare quotes from multiple insurance providers to find the best rate for the coverage you need. Costs can vary based on factors like location, size of the daycare, and specific coverage options.

• Reputation and reviews: Research insurance companies and read reviews from other daycare providers to gauge their reliability and customer satisfaction.

Ultimately, the best insurance company for your daycare is the one that offers a balance of comprehensive coverage, good customer service, and a competitive rate tailored to your specific needs.

At KBD we provide exceptional customer service, while finding you the correct coverage at the best rate. 

Looking for insurance coverage for your daycare center?

Call us.

KBD insures licensed daycare centers based in Ontario and Quebec.

When working with our brokers, here are the general steps we take to find you the right coverage:

• Assess your needs: We identify your specific insurance needs based on your daycare’s size, location, and activities.
• Research providers: Leave it to us to compare different insurance companies offering daycare coverage, and obtain multiple quotes. 
• Review policies: Examine policy options, coverage limits, and exclusions.
• Select provider: Choose the insurance company that offers the best coverage at a competitive rate.
• Purchase policy: Finalize and purchase the insurance policy.

If you’re looking for a quote, you can give our commercial insurance brokers a call today.  

We will be happy to answer any questions you may have. 

Need insurance coverage for your daycare center?

Call us.

KBD provides daycare insurance for centers based in Ontario and Quebec. 

In these provinces, daycare insurance typically includes a few key coverages: 

• Commercial general liability (CGL) insurance: This covers legal expenses if someone is injured or their property is damaged due to negligence. For example, if a child is injured at your daycare, CGL insurance would cover the medical costs and any legal fees.
• Professional liability insurance: Also known as errors and omissions insurance, this covers claims of negligence or failure to provide the promised services. This protects you against lawsuits from dissatisfied parents or guardians.
• Commercial property insurance: This protects the daycare’s physical assets, like the building, equipment, and supplies against risks like fire, theft, or vandalism.
• Abuse liability insurance: Although rare, claims of abuse can have significant financial and reputational impacts.
• Cyber liability insurance: This insurance protects against data breaches and cyber-attacks, protecting any sensitive information stored digitally. 
• Business interruption insurance: Provides financial support if the daycare is temporarily unable to operate due to a covered loss, so that you can continue to pay wages and other overhead expenses. 

These coverages collectively ensure comprehensive protection for daycare businesses.

As always, it’s best to speak with your broker about any specific insurance coverages. 

Need a daycare insurance quote in Quebec or Ontario?

Call us.

In Ontario and Quebec, while in-home daycare insurance is not legally required, it is highly recommended in order to ensure comprehensive protection. 

Depending on where you’re located, you may also be required to have certain standards of operation and licensing in order to maintain your insurance coverage. 

This can include things like limitations on the number of children that can be in your care at once. 

Make sure that your daycare operation meets all of the legal requirements in terms of registration and licensing in your province, so that you can keep your insurance intact. 

In addition, if you operate a daycare out of your home, you may need to include additional coverages to your home insurance policy. 

The best way to know what kind of coverage you need is to speak directly with a broker. 

The home and business insurance brokers at KBD will be happy to help. 

Have questions? Need a home daycare insurance quote?

Call us.

Operating a daycare in your home comes with a different set of risks than operating in a commercial daycare center. 

For instance, you will need to adjust your home space to adhere to daycare regulatory compliances. 

Here are a few of the specific daycare insurance coverages to consider:

• Commercial property Insurance: Standard home insurance does not cover business-related damages. Commercial property insurance covers daycare property and equipment against risks like fire, theft, or vandalism.
• Commercial general liability insurance: Covers legal expenses for third-party bodily injury and property damage claims. Essential for incidents such as a child getting injured on your property.
• Professional liability insurance: Protects against claims of negligence or errors in daycare services. Covers legal fees and settlements for alleged inadequate care.
• Abuse liability Insurance: Covers legal defense and settlement costs related to abuse allegations.
• Cyber liability Insurance: Covers costs related to data breaches and cyber-attacks if sensitive client or business information is stored digitally.

If you run an at-home daycare, you may also need to make adjustments to your home insurance policy. 

An experienced insurance broker can find you the right coverage for your home daycare center.

Need daycare insurance coverage?

Call us.

In Ontario and Quebec, there are three main types of home daycare insurance that providers typically offer:

• General liability insurance: This type of insurance covers injuries or damages that occur on the premises or as a result of the daycare’s activities. It includes protection against claims of bodily injury or property damage caused by the daycare’s operations.

• Professional liability insurance: Also known as errors and omissions insurance, this covers claims related to professional negligence or errors in the services provided. For home daycares, it protects against claims alleging that the caregiver’s actions or omissions led to harm or injury to a child.

• Property insurance: This covers damage to the physical property of the daycare, including the home itself and any daycare equipment. It can protect against risks like fire, theft, or vandalism.

These types of insurance ensure comprehensive coverage for the various risks associated with operating a home daycare. 

It’s important to tailor the insurance policy to fit the specific needs of the daycare.

Depending on your situation, you may need additional endorsements and coverages beyond these main three. 

In addition, you may need to make adjustments to your existing home insurance policy.

Need home daycare insurance?

Call us.

Not having daycare insurance in place exposes daycare centers to significant risks. 

Without general liability insurance, your daycare is financially vulnerable to claims arising from accidents or injuries involving children, staff, or visitors. 

Property damage, whether due to fire, theft, or vandalism, can result in substantial out-of-pocket expenses without property insurance. Plus, any legal claims of negligence or abuse can lead to costly lawsuits without professional liability coverage. 

Additionally, without insurance, the daycare may have to cover medical expenses and lost wages for injured employees. 

These financial burdens can jeopardize the daycare’s operations and reputation, potentially leading to closure. 

Proper insurance mitigates these risks, so that the daycare can operate safely and sustainably.

All in all, it’s always good business practice to be properly covered with the right insurance. 

Need daycare insurance coverage?

Call us.