9.4.1.1: Facility Insurance Coverage

Facilities should carry the following insurance:

1. Injury insurance on children;
2. Liability insurance;
3. Vehicle insurance on any vehicle owned or leased by the facility and used to transport children;
4. Property insurance.

Small and large family child care home caregivers/teachers should carry this insurance if available.

RATIONALE

Reasonable protection against liability action through proper insurance is essential for reasons of economic security, peace of mind, and public relations. Requiring insurance reduces risks because insurance companies stipulate compliance with health and safety regulations before issuing or continuing a policy. Property insurance is desirable since the costs of adverse events occurring at a facility can easily cause a financial disaster that can disrupt children’s care. Protection, via insurance, should be secured to provide stability and protection for both the individuals and the facility. Liability insurance carried by the facility provides recourse for parents/guardians of children enrolled in the event of negligence.

COMMENTS

The liability insurance should include coverage for administration of medications, as well as for unintentional injuries and illnesses. Individual health injury coverage may be documented by evidence of personal health insurance coverage as a dependent.

TYPE OF FACILITY

Center, Early Head Start, Head Start, Large Family Child Care Home, Small Family Child Care Home