Insurance coverage for a Daycare Center can be expensive
Workers compensation rates tend to vary considerably by industry, state, and insurance company. This can make it difficult for employers to know if they are getting a good deal when purchasing coverage. Partnering with an independent insurance agent is a good way to get many choices all in one place. This can help owners and managers when shopping Small Business Insurance for Daycare Companies.
Child care costs are extremely high for new parents. A large reason for the amount daycare companies have to charge is because of the cost of commercial insurance. This industry has a tendency to have a higher frequency of claims and those claims tend to have a higher severity compared to other industries. Implementing a safety program that includes a return to work program is a great way to attempt to control what a business pays for commercial insurance. These programs will help the business limit the frequency and severity of claims. It is also a great way to save when purchasing Workers Compensation Insurance.
Why are Risks so High?
A large reason for these additional risks is because the primary purpose of the industry is to take care of children. Children are the most prized possession of a family and they bring an element of emotion to any claim or lawsuit. When something happens to a child, people react differently then normal circumstances. People are willing to file a lawsuit much quicker when it comes to something involving their child. Even in the event that a lawsuit is unfounded and the business is found to not be negligent, this can still create an enormous cost to a business in the form of legal fees.
Workplace Safety Concerns
When it comes to the health and well-being of employees, Daycare Centers have many different types of risks. Common slips, trips, and falls are always a concern. Lower back injuries can be common because of having to pick up kids frequently. Germs are a large risk that needs to be dealt with. Providing antibacterial soap and hand sanitizer is essential to keep your employees healthy and on the job.
How can Daycare Centers Adapt?
The good thing is many agencies offer exclusive programs designed for the child care industry. If they are an independent agent, they can usually find programs with several insurance companies. This can help daycare centers find the lowest rates on coverage and prevent large fluctuations in premium.
NCCI Classification Codes for Daycare Programs
| Class Codes | Brief Business Description of Operations we Cover |
| 8869 | Child Care Centers- All Employees. This classification typically includes centers that care for both pre-school and school-aged children. It doesn’t include traditional schools with before and after school care programs. However this class would include child care centers operated by organizations such as YMCA’s and churches. |
| 7380 | Drivers and Chauffeurs. This is a common class code utilized for day care centers with vans or buses for transportation. |
| 8868 | College- Professional Employees. Adult day care facilities may utilize this code for day time senior care where there is very limited medical care involved. May also be applicable to learning centers. |
| 9101 | College- Other Employees. This code would apply to adult care staff who are not in a professional role or utilizes specialized skills. This may include maintenance, grounds keepers, food service and driving. |
| 8868 | Massachusetts Only- Child Day Care Centers utilize this code |
| NOTE | Contact a Workers Comp Specialist for more information on properly classifying your day care business. |