Understanding the Latest Insurance Coverages for Cybersecurity, Liability Claims, and More
As a seasoned property and casualty insurance agent, I have worked with many child care centers & child care franchisee's over the years. These businesses play a critical role in our communities by providing a safe and nurturing environment for children while their parents are at work. However, like any business, child care centers face a wide range of risks that could cause financial and reputational harm if not properly addressed, making it pivotal to stay up-to-date with the latest risks and insurance coverages. In this article, I will discuss 10 potential risks covered by child care center insurance policies, in 2023.
Child care centers are full of expensive equipment, furniture, and toys. In the event of a fire, storm, or other disaster, these items could be damaged or destroyed. Child care center insurance can help cover the cost of repairing or replacing these items.
Child care centers are responsible for the safety and well-being of the children in their care. If a child is injured or becomes ill while at the center, the center could be held liable. Child care center insurance can help cover the cost of legal fees, settlements, and judgments in the event of a liability claim.
Abuse and molestation
This is a difficult topic to talk about, but unfortunately, it is a risk that child care centers must consider. If a child is abused or molested by an employee or volunteer at the center, the center could be held liable. Child care center insurance can provide coverage for these types of claims.
Child care center employees are at risk of injury on the job, especially when lifting or carrying children. If an employee is injured, workers' compensation insurance can help cover medical expenses and lost wages.
If a child care center is forced to close temporarily due to a fire, storm, or other disaster, the center could lose income and face additional expenses. Business interruption insurance can help cover these losses.
Child care centers often store sensitive information about children and their families, including medical records, social security numbers, and other personal information. If this information is stolen or compromised, the center could face legal and financial consequences. Cyber liability insurance can provide coverage for these types of incidents.
If a child care center provides transportation for children, there is always the risk of a car accident. Automobile insurance can help cover the cost of property damage and injuries in the event of an accident.
Children will become injured at your center. When a child becomes injured at your center, this does not automatically indicate that you are at fault. A student accident policy provides medical expense reimbursement outside of the parent/guardian’s health insurance plan. The parent’s health insurance pays first, then the student accident insurance acts as an “excess” policy and helps pay for additional deductibles, large copays or expenses left to the parent to pay.
Employment practices liability
Child care centers are responsible for hiring, firing, and managing employees. If an employee files a claim for discrimination, harassment, or wrongful termination, the center could face legal and financial consequences. Employment practices liability insurance can provide coverage for these types of claims.
Directors and officers’ liability
The directors and officers of a child care center have a fiduciary duty to act in the best interests of the center and its stakeholders. If they fail to do so, they could be held liable for damages. Directors’ and officers’ liability insurance can provide coverage for these types of claims.
Child care centers face a wide range of risks that could cause financial and reputational harm if not properly addressed. A properly written insurance policy will provide coverage for these risks and give peace of mind to child care center owners and operators. If you own or operate a child care center or franchise, I strongly recommend speaking with a specialized property and casualty insurance agent to discuss your insurance needs.
Steve Johnston, CBIA:
P. 410-319-0680 | C. 410-493-5798 | Steve.firstname.lastname@example.org