Childcare programs are exposed to a variety of possible risks by the work they do, and many of these risks can be quite serious. A single incident could potentially result in a devastating tragedy and expensive lawsuit, and this type of liability risk doesn’t even take into account perils that could destroy property. While fully insulating childcare programs from all potential risks may not be practical, daycare insurance gives programs in Massachusetts a way to protect themselves from many of the risks that they face.
Daycare insurance is a specialized type of commercial insurance that’s specifically designed for childcare programs. Most policies are underwritten as package policies that come with multiple coverages, and programs can often customize the coverages in their particular policy so that the coverages suit their situation.
The vast majority of childcare programs located in Massachusetts should consider getting child care insurance, for programs are rarely without risk and this is generally the best way to insure against the risks that these businesses face. Some examples of particular businesses that may benefit from having a policy in place are:
While affidavits and waivers may offer some legal protection in the event of a liability lawsuit, these documents aren’t a substitute for an insurance policy. Even with them, businesses often still have to at least pay legal fees when sued (and could lose the lawsuit). Additionally, such legal documents don’t help protect assets that businesses own.
A child care insurance policy provides additional protections that are also important to childcare programs. For example, many policies provide coverage for legal fees and settlements in the event that a business faces a covered liability lawsuit and offer coverage for certain assets if they’re damaged in a covered claim.
The possibility of a liability lawsuit shouldn’t be underestimated when running a childcare program, and lawsuits can involve substantial fees and settlements. Additionally, potential costs only go up if multiple children are involved in a lawsuit-worthy incident.
In light of these considerations, childcare programs generally should consider selecting limits that are quite high when setting up their liability coverages. An insurance agent who’s knowledgeable about child care insurance policies can assist with deciding what limits are appropriate for a specific business.
Daycare policies are usually crafted as either claims-made or occurrence policies. Claims-made policies normally determine coverage according to when a claim is filed and frequently only covers claims that are filed while a policy is in effect. Occurrence policies typically determine coverage based on when an incident occurred, and they may cover claims that are made beyond a policy’s effective period.
Generally speaking, occurrence policies tend to offer more robust protection. Many childcare programs end up getting this type of policy in order to benefit from the additional protection they usually provide. Each policy does come with its own terms and conditions, though, and these should be carefully reviewed to make sure they provide all the desired coverage and protection.
For help finding daycare insurance that’ll protect your Massachusetts childcare program well, contact the independent insurance agents at Haberman Insurance Group. Our agents have helped many programs in the state get a policy that meets their needs, and we have the expertise necessary to get your program a policy with robust coverage.