Chaild Care Insurance Resources

Child Care Insurance Claim Examples

General Liability: Tyler, a student, fell off the swing at the childcare playground. His front two teeth were knocked out. He incurred $2,000 in dental work. Tyler’s mother filed a claim for the dental expenses and an additional $5,000 alleging emotional distress..

Professional Liability: Sally’s mother claims that Child Care center failed to render professional service in the administration of their education program. Sally had failed to identify enough colors and shapes to pass an entrance exam to a private school. Sally’s parents are suing for the cost to hire a special tutor and a refund of their tuition paid to Small World Child Care.

Child Abuse or Molestation: A disgruntled parent claims her child had bruises on his arm. When asked, her child stated his teacher hurt him. Charges filed include improper hiring, improper training of employees, and failure to protect the child from harm. Attorneys are hired to defend the school against these charges. The case is dismissed after an investigation fails to prove any abuse occurred. The center’s defense costs amount to $25,000.

Hired and Non-owned Auto Coverage: The owner Beth asked Molly an employee of the Care Center, to run to the store for craft supplies for the holiday project. While reroute to the store Molly rear-ends another car at a stop sign causing $4000 worth of property damage and $9,000 in bodily injury to the other driver and automobile.

Certain civil/ Criminal Defense Cost Reimbursement: Doug, a student, stated to his mother that an employee of ABC Child Care, touched him inappropriately. Doug’s mother then filed a report with the local police who then filed criminal charges against the employee. The employee claimed her innocence and while defending her good name and reputation incurred $30,000 in criminal defense costs. The charges were later dropped, when Doug admitted that he had fabricated the story to get back at Lauren for not allowing him to go outside when it was raining. She was reimbursed for all of her
defense costs.

Medical Payments: Michael and John, both students at a local childcare center, were playing with matchbox cars when they both decided that the wanted to play with the red sports car. Michael, determined to play with his favorite car, pushed John causing scrapes and abrasions on his arm. After
receiving a phone call from the center, John’s mother picked John up and took him to the hospital. The injuries resulted in a $2,000 bill for services provided by the hospital.

Child Care Insurance - Child Molestation & Abuse Coverage

Commercial Coverage Features include: Limits up to $1,000,000/$1,000,000 are available,  No Deductible, Coverage applies off premises (including field trips), Broadened definition includes not just Sexual, but Corporal Punishment/Physical and Mental Abuse, Coverage is triggered by acts of any individual on the premises, Employees including Directors and Assistants are included as insured's. This coverage protects the center’s employees! Unlimited Defense Costs available.

Residential Coverage Features include: Limits up to $100,000/$300,000 are available, No Deductible, Coverage applies off premises (including field trips),
Broadened Definition includes not just Sexual, but Corporal Punishment/Physical and Mental Abuse, Coverage is triggered by acts of employees

Defense Cost Reimbursement: Filed lawsuits will extend beyond the vicarious liability of the center to name the actual individual accused of the act, In the event that criminal and/or civil charges are filed against individuals, we offer a unique coverage that will reimburse the alleged perpetrator for their defense costs once they are acquitted or charges are dropped, Employees including Directors and Assistants are included as insured's. This coverage protects the center’s employees!

How do you know if a Homeowner’s policy is providing the
necessary coverage's for this industry?

Does the Homeowner’s carrier know that there is a child care center in the home? Is the business exposure covered or excluded?

Are the limits of insurance adequate? Are the limits enough to protect your business and personal assets?

Are the limits of insurance shared between the business and personal exposure?

Will the loss experience from the business exposure jeopardize your personal liability rates and coverage?

Is the policy providing specialized coverage's including Child Molestation & Abuse and Professional coverage?

Is there Defense Cost Reimbursement coverage for when the insured themselves is the one accused?

Does the policy provide Medical Payments coverage for accidents covering children in their care?


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