Daycare insurance is a niche business, but there are some companies out there who have policies written just for daycare business. Their policies often include 2 or more of the 7 policies that daycare business usually need. Here are our top 5 picks of daycare insurance providers after comparing 12 different small business insurance companies.
- 1. American Family: Best Daycare Insurance for Those Who Want a Do-It-All App
- 2. Markel Insurance: Best Online Resources of Daycare Insurance
- 3. Assure Child Care: Best Daycare Insurance for Affordable Rates
- 4. Allstate: Best Daycare Insurance for Those Who Prefer Working with An Agent
- 5. Next Insurance: Best Daycare Insurance for Fast and Simple Quoting and Purchase
1. American Family: Best Daycare Insurance for Those Who Want a Do-It-All App
American Family offers in-home daycare insurance with limited property and liability coverage that can be added as an extension of your homeowners’ insurance.
They only offer in-home daycare coverage if you take care of six children or less—be sure to count your own children in this number. The app allows you to file a claim, pay your bill, and see proof of insurance, all available 24/7.
Products American Family insurance offers:
- General liability
- Commercial auto liability
- Corporal punishment liability
- Abuse and molestation liability
- Umbrella insurance
American Family will not do an online quote for a daycare business—you are asked to call to talk to an agent about your business. Also, they don’t insure every state, so make sure you check with an American Family agent.
2. Markel Insurance: Best Online Resources of Daycare Insurance
Markel insurance has offered commercial daycare insurance for over twenty years. They insure many different types of daycare facilities, including:
- Licensed child care centers
- Nursery schools
- Montessori schools through kindergarten
- Before-and-after school programs
- In-home child care
Markel has a number of nifty services for the in-home daycare provider. They can pair you up with a service that will do a background check on all potential employees (at a discount), and they can give you a hazard assessment, which rates driving through a virtual skills test. They also have articles on toy safety and getting ready for winter.
Markel quoted us $475 for a policy with $900,000 liability limit for our daycare business
3. Assure Child Care: Best Daycare Insurance for Affordable Rates
Assure Child Care works with Philadelphia Indemnity Insurance Company to provide insurance for licensed childcare providers in 44 states. Philadelphia Indemnity has an A++ rating from A.M. Best, so you don’t need to worry about them not having resources to pay out claims. They can offer you both Group Accident and Liability Insurance, and Workers’ Compensation insurance.
On the website, you can review your payment history, make changes to your policy, or obtain a certificate of insurance.
To apply for insurance, you need to fill out the online for, become a member, and secure it with a credit card.
4. Allstate: Best Daycare Insurance for Those Who Prefer Working with An Agent
Technically, Allstate doesn’t offer daycare provider insurance, but they will treat your daycare business as a small business.
Allstate has agents who work all over the country, so there is one available near you. They can help you work out the best coverage for you. They don’t have product liability insurance, but as a daycare provider, you don’t need that anyway.
Allstate couldn’t give us an online quote, but instead asked us to call.
5. Next Insurance: Best Daycare Insurance for Fast and Simple Quoting and Purchase
Next Insurance is a new insurance company that started in 2015. Their goal is provide small owners with affordable insurance policies with an easy, online process. They have a simple online quote process, and you can pay your premiums monthly at no extra charge.
Next is so efficient with the online quote process because they rely on AI technology. However, if you want to, you can work with a human agent.
You can get a certificate of insurance as soon as you need it—instantly, if you like. Most online reviews rave about how easy and simple the process to buy a policy is, and that customer service is very good.
These are some of the questions Next asked about our daycare facility:
For our hypothetical daycare business, Next gave us this quote:
Changing the level of coverage will change the quotes just a few dollars. So it’s up to you how much coverage you’re comfortable with.