It is crucial that childcare providers insure coverage of any liability risks, and as all small business owners know, those involved in childcare need financial protection. This insurance, if adequate, will provide the provider’s family with the protection needed if income is lost. In childcare, the risks are just as serious as in any other field. For instance, the individual care giver is in danger of facing extreme financial losses if responsible for a child or employee injury or death. Liability protection can help if a claim is made against the provider – this insurance should help with any medical expenses, court costs and/or damages.
For this reason, liability risk must be prepared by the provider. It is important to discuss the possible preparatory options available before moving onto arranging liability insurance. First of all, the individual should always think about arranging a fund which can be put towards a liability claim if the need should arise. This is the first step in softening any possible financial damages. This is a method of self-insurance. Self-insuring is certainly a good start, as it allows the coverage of less harmful risks, like being responsible for the minor injury of a child. Of course, if you were involved in something more serious, like a death, you would have to set a lot more to the side. In this way, self-insurance is only the first step.
If you have home-owner’s insurance, there is the option of extension. All childcare providers should look into extending their home-owner’s insurance to their childcare business. As it stands, the majority of insurance packages do not include childcare, though they do exist. This possibility increases if the provider looks into purchasing an endorsement alongside the insurance. There are many insurance options that allow the purchase of endorsements or riders. The premium for this option tends to be quite low. If your current insurance deal doesn’t offer the possibility of an endorsement, it is suggested that you consider switching.
The third option, though slightly more expensive, is to purchase a commercial liability insurance policy. This type of insurance plays a significant part of any consumer’s automobile and home insurance. It will help in covering a range of costs, from attorney fees to damage awards to medical payments and accident insurance. While the cost of liability insurance will usually range between $400 to $800 a year, the coverage that is acquired will be comprehensive and all-encompassing. In this way, childcare providers will ensure protection from any financial losses.
As expected, different insurance companies will inevitably have different guidelines. Before you can arrange you specific liability coverage as a childcare provider, it is important that you meet the conditions put forth. Some insurance companies will not take you on as a client if your premise has a pool. Other times, you will be required to build a fence around the pool. Some other companies may disqualify you for coverage depending on a history of accidents, how safe the particular premise is, whether or not you have pets in your home and so on. There may be an inspection carried out by a company agent before you may go ahead with the commercial liability insurance policy.
If you are in need of more information, or wish to acquire a free Michigan childcare insurance quote, give Insurance Planning Service a call at 1-800-220-5582.