Daycare Insurance In Florida

Whether you operate a small in-home daycare or a large commercial child care center in Florida, having the right insurance is essential. Daycares are at a high risk for lawsuits, and Florida law has specific requirements that you must meet to be licensed.

A standard homeowners or business policy will not be enough. Florida Statute 627.70161 specifies that residential property insurance policies do not cover liability for claims arising from a family daycare home unless specifically included.

Here is a breakdown of the key types of insurance a daycare or child care center in Florida needs:

1. General Liability Insurance

This is the cornerstone of your insurance program. It protects you from claims of bodily injury and property damage that occur on your premises.

What it covers:
- Bodily Injury: A parent or visitor slips and falls on a wet floor.
- Property Damage: An employee accidentally breaks a parent’s glasses.
- Personal and Advertising Injury: Libel, slander, or copyright infringement.
Why it’s crucial: Daycares have a high traffic of people and active children, increasing the risk of accidents.

2. Professional Liability (Errors & Omissions) Insurance

This policy covers claims of negligence in the professional services you provide. It is separate from general liability and is vital for any child care provider.

What it covers:
- Negligent Supervision: A child is injured on the playground due to a lack of supervision by an employee.
- Failure to Provide Adequate Care: A parent claims you did not properly monitor their child’s health, leading to an illness
  Inadequate Background Checks: A staff member with a history of misconduct is hired, and an incident occurs.
Why it’s crucial: It protects you from allegations of professional misconduct and legal defense costs, which can be astronomical even if the claim is baseless.

3. Abuse and Molestation Liability

This is a specialized and absolutely essential coverage for anyone working with children.

What it covers: Claims of physical, emotional, or sexual abuse or molestation by an employee, volunteer, or even another child.
Why it’s crucial: Given the vulnerability of the children in your care, the risk of these allegations is a reality. This coverage helps cover legal fees, defense costs, and settlements related to these sensitive claims.

4. Commercial Property Insurance

If you own your building or have significant business property, this policy is a must.

What it covers: The building itself, playground equipment, toys, furniture, electronics, and other business personal property from events like fire, theft, vandalism, and storms.
Why it’s crucial: In Florida, it’s vital to have a policy that includes coverage for wind and other weather-related damage, which is often a separate deductible.

5. Workers’ Compensation Insurance

If you have employees, workers’ compensation is a legal requirement in Florida (typically for businesses with four or more employees, but there are exceptions).

What it covers: Medical costs and lost wages for employees injured on the job, such as a back injury from lifting a child or a slip and fall.
Why it’s crucial: It protects your business from lawsuits and ensures your employees are covered for work-related injuries.

6. Commercial Auto Insurance

If you own a vehicle for business use (e.g., a van for field trips or a car for errands), you need a commercial auto policy.

What it covers: Liability and physical damage for accidents involving a business-owned vehicle. You should also consider Hired and Non-Owned Auto Liability if employees use their personal vehicles for business.

7. Commercial Umbrella Insurance

This policy provides an extra layer of liability protection above the limits of your primary policies (general liability, auto liability, etc.).

Why it’s crucial: In the event of a catastrophic lawsuit, an umbrella policy can protect your business from financial ruin by providing additional coverage when your other policy limits are exhausted.

Special Considerations for Florida

State Licensing: The Florida Department of Children and Families (DCF) sets licensing standards for child care facilities. While a general liability policy is often mandated, it’s important to check the specific requirements for your type of facility (family home vs. commercial center) to ensure compliance.
Hurricane Risk: Florida’s susceptibility to hurricanes means you need to review your property and business interruption policies to ensure you are adequately covered for wind, flood, and other storm-related damages.
Field Trips: If you take children on field trips, your policy should provide coverage both on and off your premises.

Due to the complex nature of the risks, it’s highly recommended to work with an independent insurance agent who specializes in daycare and child care insurance in Florida. They can help you build a customized insurance package that meets state requirements and provides the best protection for your business.