Do you run a small daycare out of your home? If you do, or you’re thinking about starting one, here’s what you need to know about insurance.
children playing at daycare
Homeowners insurance won’t cover you
In Texas, taking care of up to three unrelated children in your home for at least three hours a day, three or more days a week, is considered a listed family home. Because a listed family home is a business, homeowners insurance won’t cover losses related to your home daycare.
You need liability coverage
You need to be covered if something happens to a child while in your care, either at your home or elsewhere. Liability insurance helps cover injuries and accidents. In Texas, a listed family home or other daycare must have at least $300,000 in liability insurance to cover each child in your care involved in an incident of negligence.
Notify parents if you’re exempt
There are exceptions, including daycares that can’t find a company to insure them or that have used up the limits of a $300,000 policy. If your business qualifies for an exception, you must give written notice to every parent or guardian with a child in your care. There’s a form you can use to do that.
For a listed family home to operate in Texas, you need to get a listing from Child Care Licensing at the Texas Health and Human Services. A good way to start is to create a Child Care Regulation online account or contact your local Child Care Licensing Office.