You have a legal duty to act with reasonable care while supervising children in your custody. When a provider fails to use reasonable care and a child is consequently injured or becomes sick, it can be said that the provider “breached the duty of care” or “acted negligently,” and that provider can be sued.
State laws vary. Some have mandatory insurance requirements. Check with the agency which licenses or registers your facility.
No! it only means the parent/guardian knows you do not have insurance and that they must collect any money awarded from a lawsuit from you. You will have to pay your own legal fees.
Homeowners or renters insurance policies do not protect you unless you childcare business is added to the policy for an extra charge. If it is added, coverage is very limited. It does not provide the much needed child abuse coverage. Some companies limit coverage to the childcare premises only. General liability insurance provides a broader coverage and extends to cover field trips. It can also be extended to include other coverages, including child abuse, at no additional cost. Professional Liability/Errors and Omissions insurance is considered by many to be the broadest coverage. It provides coverage for negligent supervision for childcare. It is the same type of insurance carried by doctors, lawyers, real estate and insurance agents.
Negligent supervision is when a child’s injury or illness could have been avoided with reasonable care.
Yes. Lawsuits can be filed against you when the injured child’s parents/guardians “think” you are at fault. Even groundless claims have to be defended by an attorney. With insurance, if the claim is covered, the insurance company pays the defense cost. If there is not insurance, you pay.
If you are sued because a child is injured, or becomes sick and the claim is covered by the policy, the insurance company will pay your legal defense costs. If you are found liable (negligent), it will pay the amount specified by the judgement up to the policy limit. Lawsuits are unpleasant as well as expensive, and you need a lawyer to defend you. The best protection is the proper type of insurance, the kind of insurance that is specifically designed for family childcare. Unfortunately, not all childcare insurance policies are the same. It is important to look for a policy that provides the best coverage.
There are two types of insuring forms. An “Occurrence Form” is best because it covers claims reported after the policy expires, after you have gone out of business or changed insurance companies.
Beware of “Claims-Made” forms. Claims can be made against a provider a number of years after the injury, after the child has left the provider’s care, or after a provider goes out of business. In some states a minor can file a lawsuit up to age 21. A “Claims-Made” policy only covers claims reported during a specified time, usually during the policy term or within one or two years after the policy expires.
If you have insurance and a child is hurt while in your care, it is important to report it to your insurance company as soon as possible, even if you don’t think it is going to be a claim.
That depends on your individual needs. If insurance is required in your state, they will set a minimum limit. Check with the agency which licenses or registers your facility.
It is the amount you must pay in addition to the policy premium for all claims. Many companies have deductibles to reduce their expenses for handling claims, which are charged even if nothing is paid on the claim. Deductibles should be avoided because they increase the cost of your insurance.
Professional Liability/Negligent Supervision and General Liability for your day care operations on and off the premises, including claims or allegations made against you because of your actions, or those of your employees, helpers, spouse, children or residents of the household.
Exclusions are those events that are NOT covered by the policy. All insurance policies have conditions and exclusions. It is important to read your policy. Beware of policies that exclude coverage for all dogs on the premises, swimming pools or other bodies of water, overnight care, HIV/AIDS or communicable diseases, or non-emergency care before or after your regular operating hours.