Preschool Insurance Policy Information
Preschool Insurance. Preschool is so important for children and their families. It introduces young children to the foundations of education by teaching them basic skills. It also instills important social skills and supports emotional development, too.
Preschools teach very young children, generally three to five years old, to prepare for kindergarten. Students engage in group activities, such as crafts, dancing, and singing, while learning to interact socially with others.
Pre-schools may be run independently or in conjunction with a kindergarten. Classes are generally limited to a half day. Before-class and after-class day care services may be provided to working parents.
Pick up or drop off service may be offered or the pre-school may transport students for field trips or other special events.
Children will carry and build on the knowledge and skills that they acquire in preschool throughout the rest of their lives. As the owner and operator of a preschool, you focus on keeping the students who are entrusted in your care, as well as your staff, as safe and happy as possible.
However, despite your best efforts, mistakes do happen. In the unfortunate event that one of your students is injured on your school grounds or if one of the teachers you employ sustain an injury while they are participating in a school event, you'll be responsible for the related costs.
How can you protect yourself from unexpected exorbitant expenses? - By investing in the right type of insurance coverage.
But what kind of preschool insurance do you need? Read on to find out how you can protect your pre-school, your students, your staff, and yourself from unexpected events and the costs that may be associated with them.
Preschool insurance protects your child care and education business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked preschool insurance questions:
- What Is Preschool Insurance?
- How Much Does Preschool Insurance Cost?
- Why Do Preschools Need Insurance?
- What Type Of Insurance Do Preschools Need?
- What Does Preschool Insurance Cover & Pay For?
What Is Preschool Insurance?
Preschool insurance is a type of insurance coverage designed specifically for preschools and early childhood education centers. It provides protection for the school and its staff against financial losses and liability claims that may arise from accidents, injuries, property damage, and other risks associated with operating a preschool.
This insurance covers a wide range of risks such as general liability, property damage, personal injury, medical expenses, and staff coverage. The insurance policy can also include coverage for educational materials, equipment, and facilities. Preschool insurance helps protect the school from financial loss, allowing it to continue providing quality education and care to its students.
How Much Does Preschool Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pre-schools ranges from $57 to $89 per month based on location, size, revenue, claims history and more.
Why Do Preschools Need Insurance?
Young children are curious and sometimes precarious. They love to explore, test the limits, and interact with the world around them. However, young children are still developing their motor skills, learning special recognition, and are discovering appropriate social skills. In other words, you never know when a preschooler could slip and fall or accidentally injury someone else.
Your students aren't you're only concern; you also need to make sure that you are providing your teachers and staff with a safe work environment. Then there's the property that your preschool operates out of; a classroom or an entire building could be damaged in a storm, a fire, or even by an act of theft or vandalism.
As the owner and operator of your preschool, you are liable for anything that goes wrong. As you can imagine, if something does go wrong, you could be looking at some serious financial losses. Legal expense fees, compensation, repairs, etc.; all of these things have exorbitant costs.
If you're properly insured, however, instead of having to pay unexpected expenses yourself, your insurance company will cover them for you. In short: preschool insurance can protect you from financial devastation. Plus, in order to operate legally, preschools must be properly insured.
What Type Of Insurance Do Preschools Need?
There are several different types of policies that preschools should carry. Some of those policies are compulsory, while others are voluntary, so to find out exactly what type of coverage you should invest in, speaking with an experienced commercial insurance agent is highly recommended.
With that said, however, here is a look at some of the preschool insurance policies that are needed:
- Commercial Property - This type of insurance covers the cost of damages or losses to the property your school functions out of, as well as the items within that property, from acts of nature, theft, and vandalism. For example, if someone were to vandalize your school, your insurance company would cover the cost of any repairs that might need to be made.
- Commercial General Liability - To protect your preschool from third-party liability claims, you'll need to invest in commercial general liability insurance. This preschool insurance policy covers the costs that are associated with third-party personal injury, physical injury, and property damage claims, including legal defense fees and any compensation that a court might find you liable for.
- Workers Compensation - To protect your teachers, faculty, and staff, you'll need to have workers comp insurance. Should someone on your faculty or staff sustain an injury while they're performing a work-related service - in the classroom or on a field trip, for example - workers' comp will cover the cost of any medical care that they might require and will reimburse them for wages that they may lose in the event that they are unable to work while recovering.
These are just a few examples of the preschool insurance insurance coverage that should be in place. To find out exactly what type of coverage you should invest in, get in touch with an agent that specializes in commercial insurance.
Preschool's Risks & Exposures
Premises liability exposure is extremely high due to the age and vulnerability of children. The adult/child ratio should be low enough to permit adequate supervision. Classrooms should be arranged so instructors can see children at all times. Furnishings, toys, and playground equipment must be well maintained to prevent injury to children. Electrical outlets should be covered. Flooring should have nonskid surfaces.
Adequate lighting and marked exits are mandatory. Parking areas should be maintained free of ice and snow. Because children learn by touching and sharing, communicable diseases can be spread quickly to others. Children and staff should be encouraged to wash hands regularly. Furnishings and toys should be regularly sanitized.
Immunizations should be required for each child, along with an emergency medical contact. There should be written policies regarding when a child is too ill to attend school, and when the facility will contact parents or medical emergency providers in the event of illness or an accident.
Security issues are becoming more critical in educational settings. All adults' references must be verified, including a criminal background check. Procedures for all emergencies should be posted, with instructors and aides trained to use them. Evacuations drills should be practiced on a regular basis.
Access to the building must be limited during the hours of operation to prevent unauthorized entry, kidnapping, or children escaping. Pickup or release of any child must be limited to authorized individuals only.
Personal injury exposures include allegations of discrimination, failure to prevent intimidation, humiliation, or bullying by instructors or other students, and invasion of privacy.
Abuse and molestation exposure is very high due to the care and supervision of children. No coverage is available for the abuser. While there is some coverage available in the standard market for the pre-school where the abuse takes place, it is very restricted.
More complete coverage should be purchased through specialized markets. The pre-school must take all care possible to protect students from predatory adults and older students through background checks, monitoring, and supervision, and reporting all allegations of abuse to the proper authorities.
Workers compensation exposure is moderate. Teachers can incur back injuries, hernias, sprains and strains from lifting, foreign objects in the eye, and trips or falls over misplaced toys or supplies. If food is prepared on premises, kitchen workers can incur cuts, scalds, and burns.
Custodians can develop respiratory ailments or contact dermatitis from working with chemicals. Exposure to communicable disease can be high as children learn by touching.
All employees should have up-to-date immunizations to prevent the spread of communicable disease. Unauthorized visitors can pose a threat to employees as well as students.
Property exposure is light. Ignition sources may include electrical wiring, heating and air conditioning systems, and cooking equipment. All wiring should be well maintained and up to code. Circuit breakers and fuse boxes should not be able to be overridden.
Business personal property includes flammable paper, craft supplies, toys, wood and/or plastic furnishings. Food preparation is generally limited to stove top or microwave cooking. Extinguishers should be readily available. Business income may be needed after a loss if backup facilities are not readily available.
Crime exposure is from employee dishonesty and theft of money and securities. Background checks should be performed on all employees handling money. All job duties, such as ordering, billing, and disbursement, should be separate and reconciled on a regular basis.
If cash is received from parents, receipts should be provided. Bank deposits should be made on a timely basis to prevent the buildup of cash on premises. Audits should be conducted at least annually.
Inland marine exposure is from accounts receivables for payments from parents, computers, and valuable papers and records for students' information. Duplicates should be made of all data and stored off premises. There may be audio-visual equipment that is taken between classrooms.
Business auto exposure is very high if the pre-school offers pick up or drop off service or transports students for field trips or other special events. All drivers must have the appropriate license for transport of children and acceptable MVRs that must be checked on a regular basis.
Approved child seats and seat belts must be used by all students. There must be adequate supervision on the vehicles during transport. All vehicles must be well maintained and the records kept at a central location.
What Does Preschool Insurance Cover & Pay For?
Preschools can face various lawsuits due to different reasons, some common ones include:
Injury or harm to a child - Preschools can be sued if a child is injured or harmed while under their care. This can include accidents on the playground or in the classroom, or incidents of abuse or neglect by staff members.
Insurance protection: Preschools can have liability insurance that covers bodily injury and property damage caused to others. This insurance can help pay for the legal costs of defending against a lawsuit and also cover any settlements or judgments against the preschool.
Discrimination or wrongful termination - Preschools can also face lawsuits for discrimination or wrongful termination of employees. This can include claims of discrimination based on race, gender, religion, or age, as well as claims of wrongful termination or retaliation for reporting illegal activities.
Insurance protection: Employment practices liability insurance (EPLI) can protect preschools from lawsuits brought by employees or former employees. EPLI can help pay for legal defense costs, settlements, and judgments related to claims of discrimination, wrongful termination, harassment, or retaliation.
Breach of contract - Preschools can face lawsuits for breach of contract if they fail to fulfill their obligations under a contract with parents, vendors, or service providers. This can include failure to provide services as promised or failure to pay for services or products received.
Insurance protection: Commercial general liability (CGL) insurance can provide coverage for breach of contract claims. CGL insurance can help pay for legal defense costs, settlements, and judgments related to claims of breach of contract or other contractual disputes.
Property damage or theft - Preschools can also face lawsuits if they cause property damage or if their property is damaged or stolen. This can include damage to buildings, vehicles, or other property belonging to parents, staff members, or others.
Insurance protection: Property insurance can protect preschools from financial losses due to property damage or theft. Property insurance can help pay for repairs or replacement of damaged property, as well as any legal costs associated with defending against a lawsuit related to property damage or theft.
In summary, insurance can protect preschools from financial losses associated with lawsuits by providing coverage for legal defense costs, settlements, and judgments. The specific type of insurance coverage a preschool needs will depend on the risks it faces, but common types of coverage include liability insurance, employment practices liability insurance, commercial general liability insurance, and property insurance.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8351 Child Day Care Services
- NAICS CODE: 624410 Child Day Care Services
- Suggested Workers Compensation Code(s): 8869 Child Care Center - All Employees Including Clerical, Salespersons & Drivers
8351: Child Day Care Services
Division I: Services | Major Group 83: Social Services | Industry Group 835: Child Day Care Services
8351 Child Day Care Services: Establishments primarily engaged in the care of infants or children, or in providing prekindergarten education, where medical care or delinquency correction is not a major element. These establishments may or may not have substantial educational programs. These establishments generally care for prekindergarten or preschool children, but may care for older children when they are not in school. Establishments providing babysitting services are classified in Industry 7299. Head Start centers operating in conjunction with elementary schools are classified in Industry 8211.
- Child care centers
- Day care centers, child
- Group day care centers, child
- Head Start centers, except in conjunction with schools
- Nursery schools
- Preschool centers
Preschool Insurance - The Bottom Line
To discover more about the exact types of preschool insurance policies you'll need, how much coverage you should carry and the costs - consult with a reputable broker that is experienced in commercial insurance.
Additional Resources For Additional Resources For Children & Pet / Dog Care Insurance
Discover what small business commercial insurance policies cover for children and pet related businesses.
- Day Care Insurance
- Dog Walking
- Pet Groomer
- Pet Sitting
- Specialty Animals And Birds
A childcare center needs insurance for several reasons. First and foremost, insurance provides financial protection in the event of an accident, injury, or other unforeseen circumstances.
For example, if a child is injured while at the daycare, the center could be held liable for medical expenses and other damages. Insurance can help to cover these costs, protecting the daycare and its owners from financial ruin.
In addition to protecting against financial risk, insurance can also help to protect the reputation of the daycare. If an accident or injury occurs, the media and public may become involved, potentially damaging the reputation of the daycare. Insurance can help to mitigate this risk by providing support and resources to handle the situation.
Finally, many states and localities have laws and regulations that require daycare centers to have certain types of insurance coverage. For example, some states require daycare centers to have liability insurance to cover the costs of accidents and injuries that occur on the property. Failing to carry the required insurance could result in fines or other penalties.
Pet related businesses, such as pet stores, grooming salons, and animal hospitals, need insurance for a number of reasons. These businesses often handle a large volume of dogs, cats and other animals and can be prone to accidents and unexpected events.
For example, a pet store may be sued if an animal becomes sick or injured after being purchased from the store. An animal hospital may be sued if a pet owner believes their animal received inadequate care. A grooming salon may be sued if an animal is injured during grooming.
In these situations, insurance can provide financial protection for the business and help cover the cost of legal fees and settlements.