There are thousands of daycare businesses operating in Florida, most varying in size and type of location. But what they all have in common is the possibility for facing unexpected property damage or a lawsuit that could have devastating financial consequences. 

Daycare insurance in Florida is necessary for most childcare providers who want to protect their business and their personal assets when something goes wrong. If you operate a daycare in Florida, you can work with a Florida independent insurance agent to find daycare insurance that is tailored to your unique needs.

What is Daycare Insurance?

Daycare insurance is a specific type of Florida business insurance that is designed to meet the unique needs of childcare businesses in Florida. It is typically a package of several policies that cover property damage and lawsuits, allowing you to focus on running your business and providing excellent care to the children in your center. 

Most daycares in Florida need commercial property insurance and commercial liability insurance at a minimum. 

In many cases, daycare centers are required to purchase certain coverage in order to be licensed to operate by the state. What’s more, your insurance company may require you to adhere to certain requirements in order to keep your coverage and limit your exposures to lawsuits. 

If you operate a daycare out of your home, your homeowners insurance likely excludes coverage for activities related to operating a business, making daycare business insurance essential for you as well. 

It’s also important for Florida daycare owners to understand the risks they face that are not covered by basic property and liability insurance. You’ll likely need to purchase a variety of additional Florida business insurance policies to make sure that your daycare is protected from the numerous losses and claims of negligence that can arise as a result of your operations. 

What Does Daycare Insurance Cover in Florida?

A basic Florida daycare insurance program will include commercial general liability (CGL) insurance to protect from lawsuits, as well as commercial property insurance for your physical space, including play areas, sleeping areas, office space, play equipment, kitchen equipment, strollers, toys, and other business property that you have. Large daycares may need to cover buildings that they own, vehicles, and other forms of business property. 

Commercial General Liability (CGL) Insurance for Florida Daycares

General liability insurance is necessary for any business that invites the general public onto its premises. It covers claims related to property damage or injuries suffered by third parties while they’re on your premises.

Daycares have a particular responsibility to protect the children they care for. And children may get injured more easily than other people, making this coverage essential. If any child is injured and medical care is required, you’d be responsible for paying for the medical expenses. And if you’re sued, your CGL coverage would pay for medical expenses, your legal costs, and any financial settlements paid to the injured party. 

Commercial Property Insurance for Florida Daycares

You’ve likely invested quite a bit into setting up your daycare. You need a lot of equipment, toys, and other items to keep the children busy and safe throughout the day. Protecting your business property from disasters like fires, severe storms, theft, and vandalism is extremely important.

If you own your daycare building, your commercial property policy covers damage to the structure of the building if it is damaged by fire, severe weather, lightning, property crimes, and other covered perils. 

If you rent your space, your landlord will purchase coverage for the building, but you still need coverage for all of your business property, including computers, furniture, equipment, toys, and anything else inside of your business. 

If you operate a home-based daycare, you likely need to add a home-based business endorsement to your Florida homeowners insurance policy in order to cover your business-owned property. 

You’ll want to be sure that your daycare property insurance includes coverage for any outdoor equipment such as swings, sandboxes, sports equipment, and more. 

Your commercial property policy should also include business interruption insurance. It offers income replacement if you are forced to close to make repairs or rebuild after a covered event (e.g., a fire). It allows you to take the appropriate time to make repairs or find a new space without losing all of your revenue during that critical time. 

What Does Daycare Insurance Not Cover in Florida?

Are you covered for all of the additional risks that are present in your Florida daycare facility? It’s likely that your commercial property and liability policies exclude coverage for certain types of incidents and lawsuits that you are at high risk for. In these cases, how can you protect yourself? 

That’s why it’s just as important to understand what is not covered by your Florida daycare insurance as what is. In many (but not all) cases, the excluded property or situation can be covered with another insurance policy or a special endorsement. 

Some typical daycare insurance exclusions include:

• Flood and earthquake coverage
• Claims resulting from damage to the property of others that is in the care, custody, and control of the business 
• Any legal actions that do not involve a claim for bodily injury, property damage, personal injury or advertising injury 
• Actions by a governmental agency related to failing to follow regulations
• Claims for back taxes 
• Special events and field trips
• Sexual molestation and corporal punishment claims
• Failure to provide a safe workplace/employee injuries
• Professional negligence or errors and omissions
• Employer’s liability claims
• Commercial auto liability claims
• Professional liability claims

Here’s how you can cover some of these excluded circumstances that are serious risks for most daycare centers.

Professional Liability Insurance for Florida Daycares

Professional liability insurance covers errors and omissions made by your employees as they provide services to your customers. This could come into play if one of your teachers were sued for some type of professional negligence, which is usually excluded from a general liability policy. 

Commercial Auto Liability Insurance for Florida Daycares

If you operate business-owned vehicles to take children on field trips or drive children to and from your daycare center, you’ll need to purchase commercial auto insurance. It protects your assets if one of your drivers causes an accident, and it can also help you pay for repairs to your vehicles if they’re damaged by hail, hitting an animal, or some other type of collision. 

If you drive a personal vehicle for daycare business, that use is likely excluded from your Florida personal auto insurance policy. You’ll need to purchase hired and non-owned auto liability insurance to be sure you’re covered while driving your own vehicle for business purposes. 

Corporal Punishment Liability Insurance for Florida Daycares

It’s not surprising that if you or one of your employees is accused of striking or administering some type of corporal punishment to a child, you’ve opened yourself up to a serious lawsuit. Most Florida daycare insurance programs should include special corporal punishment liability coverage. This coverage is normally excluded from a CGL policy, so be sure to discuss it with your insurance agent. 

Abuse and Molestation Liability Coverage for Florida Daycares

This is another area where daycares are extremely vulnerable to lawsuits. If you or one of your employees were accused of abuse or molestation, you’d not have coverage to defend yourself under your CGL policy. Talk to your insurance agent about making sure you have this essential additional coverage. 

Field Trip and Special Events Coverage for Florida Daycares

Daycare centers in Florida often take children on field trips or even host special events like birthday parties on-site. These circumstances may be specifically excluded from your CGL policy, making it necessary to purchase special coverage. Field trip insurance provides liability and property damage coverage while you are providing childcare services off-site. Special events liability insurance offers one-time extended coverage for the special circumstances that arise when you host special events on your premises. 

Florida Workers’ Compensation Coverage for Daycares

Workers’ compensation insurance makes it possible for workers to pay their medical bills and be compensated for lost wages if they are injured at work. Florida’s workers’ compensation law requires all non-construction employers who have four or more employees to purchase workers’ compensation insurance.

Florida Flood Insurance for Daycares

Flood damage is not covered by any of your Florida daycare insurance policies. But you can purchase special flood insurance from the National Flood Insurance Program (NFIP). If your daycare is located in an area that is prone to flooding (including flooding caused by hurricanes), it's important to discuss with your agent purchasing this coverage. If you do not have flood insurance but your daycare is damaged by floods, you'd have no coverage to help you pay for repairing and replacing damaged property. 

What Are the Benefits of Insuring a Daycare in Florida?

It’s pretty simple. Daycare insurance in Florida protects your business and your personal assets from all of the risks that you face as a daycare owner. Some of the problems that can be addressed with Florida daycare insurance include:

• Damage to your commercial property 
• Lawsuits due to injuries or property damage caused by your business (negligent spread of illness, injuries due to faulty playground equipment, etc.) 
• Allegations of physical abuse
• Allegations of sexual abuse or molestation
• Accidents involving your daycare vans or vehicles

Can I Afford Daycare Insurance in Florida?

Daycare insurance is a necessity for protecting your Florida daycare center from some of the worst threats it faces. Your Florida daycare insurance premiums will depend on your insurance needs and the size of your childcare center. 

What are the crime and weather risks where you live? How many people do you employ? What is the value of your business property? How many children are on your premises at any given time, and what types of activities do they engage in? Do you own vans or other vehicles that transport children to and from you daycare center? Do you operate a daycare out of your home? 

All of these factors and more will impact the types of coverage you need and how much it will cost. 

A local independent insurance agent can work with multiple insurance companies, finding those that specialize in Florida daycare insurance and helping you get the coverage you need at a price you can afford. 

Do I Need an Agent to Purchase Daycare Insurance in Florida? 

Daycare insurance is a very specialized insurance area that requires a great deal of expertise by both the agent and the selected insurance companies. A Florida independent insurance agent will walk you through a handpicked selection of policies and insurance companies so you can be sure you’re addressing all of your exposures. Your agent can help you sort through enough options to be sure your coverage is affordable as well.  

Most importantly, working with an independent agent will ensure that someone is there for you at claim time, walking you through the process and making sure it is handled in a timely manner.