Insurance for a risky business!

[spud]

Running a daycare is risky business and not all insurance companies are willing to take on such a high risk business (Based on its history).
The additional business cost of securing appropriate insurance  can be a nightmare! Why do you think daycare is such risky business?

[jharrisece]

You are right that not many insurance companies will cover childcare.  Fortunately I am with Whillis-Harding Ins. (out of Kelowna - they will cover BC and some of Alberta) and get a really good rate, around $80 per space.  Other places charge $2,500 per program (at the time I was operating two programs so that would have been $5,000 a year which is 20% of the total fees/operating grant.  Ridiculous, isn't it!)  They consider children 'high risk' because they are unpredictable and some parents will sue over the anything.  Apparently we don't even hear all the cases that go to court of parents looking to make a buck.  In fact, our insurance company says do not tell parents you have liability insurance.  Oh, and it is not a licencing requirement here in BC to have insurance.  Many people do not carry it and all it takes is a child to slip on the ice and break their arm and you are losing your house, your business, and your life is over! 

[spud]

How I understand it, if you are negligent by not clearing the ice in the first place, the insurance wont cover you anyways..even after such costs for the insurance in the first place. Here, it is a licensing requirment to have a million liability..plus the appropriate insurance to transport children in your vehicle if you choose to use your vehicle. My one neighbour said her insurance company does not cover her the minute she steps foot off her property either...wow eh.

[jharrisece]

Here in BC they can't make it a licencing regulation because if someone doesn't have the insurance then it becomes the government's fault.  Whillis-Harding's insurance is five million per incident  BUT a family childcare has seven and a group has eight per caregiver - what if there is a serious accidnet and all children are injured?  It may not cover it.  Oh, and the insurance covers you wherever you go although your vehicle insurance has to be through ICBC and you have to have additional coverage for work on it.   Trying to make a claim against any insurance is always difficult and they can turn it down.  Also, every year we have to fill out an extensive questionnaire so if you have had anything happen they can turn you down.   It actually isn't easy to get insurance and if they turn you down you are basically out of luck getting any coverage.  I wouldn't work without it so it is a stress every year!

[mvb]

Insurance is very important in your profession. Having read this forum and some others, I don't see how people can operate without it. It's part of duing business.

[Icare]

Hello Everyone!
Just a quick post in introduce myself...Robyn's'Nest, a reg'd name in the daycare sector in S'toon, Sask.   I've been in operation since 1996, as well.

I am also new to this forum and site, as I just registered! Nice to see this type of site and congratulations on your launching..

On the topic of Daycare Insurance...
I also do provide the special and specific Daycare Insurance you are speeking about in this forum...Yes, IT is an important component of operating ANY business, & esp. in this sector; involving childcare!!

I have always operated my business with it! 
Just in case...Here is just one example/senerio where it would be prudent to have Insurance:

If a street vehicle veered up from off the busy street, onto daycare property while parents were loading their child/ren on the provided OFF street parking area...and this vehicle accidentally injured or worse an attending families' child...then the necessary insurance compensation is available to assit this family in his/her child's recovery process or otherwise compensate attending families for unexpected and unforeseen adverse circumstances!

In SASK, only one Insurance brokerage ( that I know of...) assists daycare's with specific daycare insurance, namely The Co-Operators Insurance and Investments on 8th Street. 
I advertise in my ads, on various sites that Robyn's Nest Childcare Home, offers daycare insurance and the professional families' who I provide care for really do appreciate and value
the fact that my carehome facility does NOT neglect this most important component, to operating a quality dayhome.  Many or most daycares here in SASK. simply neglect to obtain any extra INS!! 

I absolutely believe INS. should be manditiory!...it certainly offers much much more to families, in addition to the inherent 'peace of mind'!!

It only cost my daycare business an additional $200.00 annually above & beyond my regular Home INS...not that much extra really!!!  PLUS remember you can write this special INS. off
on your business income tax return!!

Thanks again!
Have a great Day! 

[CareDC]

Hi Robyn and welcome to the community.

Excellent response, and thank you for the kind word!

[spud]

Great post Robyn! Thanks for that!

[JD1]

Hi there,

I was wondering if anyone had any numbers to share regarding the cost of insurance in Ontario, for a centre that caters to 40-50 kids.

Your advice is appreciated!

[cece123]

In Alberta, if you have a private day home must you have insurance?