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:
- How Much Does Preschool Insurance Cost?
- Why Do Preschools Need Insurance?
- What Type Of Insurance Do Preschools Need?
How Much Does Preschool Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small bpre-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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8351 Child Day Care Services
- NAICS CODE: 624410 Child Day Care Services
- Suggested ISO General Liability Code(s): 41715, 41716
- Suggested Workers Compensation Code(s): 8869
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.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.
Whenever children are involved, an extra level of care needs to be taken when selecting an business insurance policy.
Younger children require more supervision than older children. Each state establishes minimum standards and ratios for children-to-adults based on the children's ages.
Day care facilities must comply with these minimum standards and some exceed them by having additional staff to provide more personal attention and activities.
Pet related businesses have a large liability risk when working with multiple dogs. If one of the dogs bites someone, they can do a of of damage and claims are often in the thousands. Certain breeds of dogs can do major damage if they bite.
Another consideration in the pets themselves - what if they are injured while being groomed or walked? What if one dog attacks another while you are walking them?
If you do not have the right coverage you could have to pay a claim and expensive legal fees out-of-pocket.