Insurance for a daycare / preschool: what you need + typical cost.

For your business: GL + Property bundle; add abuse & molestation rider — many standard BOPs exclude A&M explicitly.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Injuries to children in your care, property damage, and slip/fall incidents at the facility are standard GL exposures.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Educational and care decisions (curriculum, supervision gaps) can trigger professional liability claims.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Required for all staff. Childcare workers face injuries from lifting children, repetitive motion, and active play environments.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: Equipment, furniture, toys, and improvements to your facility need coverage against fire, theft, and damage.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: Child records, parent payment data, and COPPA compliance create data breach exposure.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: Required if you transport children to/from school or on field trips. A standard personal or GL policy will not cover this.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: Given the vulnerability of the population served, an umbrella adds important protection above GL limits.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

Why is abuse and molestation coverage a separate rider — isn't it covered by GL?

Standard GL specifically excludes 'abusive acts.' Without the rider, an A&M claim is uninsured. The rider is required by most state childcare licensing boards and by every reputable parent's contract. It covers both defense and any settlement, plus often pays for psychological-counseling costs for affected families.

Does our coverage extend to field trips off-site?

GL typically extends to any location where you conduct authorized business activities, including field trips. But transportation requires separate Commercial Auto coverage on any vehicle used for child transport. Borrowed parent vehicles are NOT covered without 'hired and non-owned auto' — and most state licensing prohibits using parent vehicles for daycare transport anyway.

What about workers comp for assistant teachers and aides?

Required for any W-2 staff in virtually all states. Childcare workers comp rates are moderate ($2-$5 per $100 of payroll) because injuries are common but rarely severe. Background-check documentation (which you should have anyway for licensing) helps qualify for the better-rated programs.