How to Compare Daycare Insurance Quotes

You asked for quotes, and now you have two or three proposals that all look roughly alike on the first page. One costs less. It is tempting to pick it and move on to everything else on your list.

Before you do, it is worth an hour to compare daycare insurance quotes on what they actually cover. Childcare policies can differ in ways that do not show up in the premium: a lower limit on abuse claims, a missing coverage part, or an exclusion for the splash pad you open every June. Those differences tend to surface at the worst possible time, after something has happened.

Here is what to look at, and a checklist you can use with your agent.

Make sure you are comparing the same thing

The most common mistake is comparing quotes that include different coverage parts. One proposal may bundle general liability, abuse and molestation, professional liability, and property. Another may quote general liability and property only. The second will usually look cheaper because it is doing less.

Before comparing price, line up each quote by coverage part and confirm which ones are included, which are optional, and which are missing. If one quote leaves something out, ask whether it can be added, or whether you would need a separate policy. Our checklist of coverages a daycare needs can help you decide what belongs on the list.

Limits: per occurrence and aggregate

Liability limits usually come in two parts. The per occurrence limit is the most the policy may pay for a single incident. The aggregate limit is the most it may pay for all covered claims during the policy period.

When comparing, check both numbers for each coverage part, not just general liability. Also check whether your lease, licensing agency, or contracts call for specific limits, since a quote that falls short may not satisfy them. Requirements vary, so confirm with each source. An umbrella policy may be an option if you need higher limits than the underlying policies provide.

Abuse and molestation: included, sublimited, or excluded

This is often the biggest difference between childcare quotes, and the easiest to miss. Look for which of these applies:

• Included with its own stated limit
• Sublimited, meaning it is covered but at a lower limit than the rest of the policy
• Excluded, meaning the policy does not respond to these allegations at all

Also look at who is covered (employees, volunteers, the business), whether defense costs reduce the limit, and any conditions such as background check requirements. Our page on coverage for abuse allegations explains why this matters so much for childcare.

Professional liability and how enrolled children are treated

Claims about the care itself, such as improper supervision, a missed allergy, or a medication error, may fall under professional liability rather than general liability. Check whether each quote includes professional liability for childcare services or leaves it out.

Next, look at how the policy treats injuries to the children in your care. Some general liability forms handle enrolled children differently than visitors, or rely on a separate coverage part. Ask your agent to confirm in plain terms how a playground fall or a bite during nap time would be handled. Some quotes also include or offer accident medical coverage, which may pay a child’s medical bills regardless of fault.

Exclusions and activity limitations

Read the exclusions list, or ask your agent to summarize it. Pay attention to anything that touches what your program actually does:

• Swimming, wading pools, splash pads, or water play
• Field trips and off site activities
• Transportation of children
• Trampolines, bounce houses, or animals on site
• Food preparation or cooking with children
• Communicable disease

If an exclusion conflicts with something you do regularly, raise it before you bind. Sometimes the activity can be added, and sometimes a different insurer is a better fit. Options vary by insurer and state.

Deductibles, policy form, and payment terms

Deductibles. A higher deductible may lower premium, but make sure it is an amount you could actually pay after a loss. Check whether deductibles differ by coverage part.

Occurrence versus claims made. An occurrence policy generally responds to incidents that happen during the policy period, even if the claim is filed later. A claims made policy generally responds to claims made while the policy is active, which can matter if you switch insurers or close. Ask which form each quote uses, especially for professional liability and abuse coverage, and what that means if you change policies later.

Payment terms. Compare down payments, installment options, and any fees. Ask what happens if a payment is late.

Service and claims handling

The policy is a promise, and the people behind it matter. Ask your agent:

• Does this insurer have experience with childcare claims?
• How are claims reported, and who will you talk to?
• How quickly can you get certificates of insurance for a landlord or licensing agency?
• Who handles changes during the year, like adding a van or a second location?

We do not publish ratings or rankings, but a specialist can share how each market tends to work with childcare clients.

Side by side comparison checklist

Use this table with each quote. Your agent should be able to help you fill it in.

That last row is worth extra attention. Ask directly what each quote does not cover, so the gaps are visible before you choose.

If you are earlier in the process, our step by step guide on getting insurance for your daycare covers what to gather first, and the daycare insurance cost guide explains what drives premium.

To compare options from multiple markets for your program, ask us for a quote or call 605-275-9700.

This article is general information, not legal, regulatory, or safety advice, and it does not change the terms of any policy. Requirements vary by state and provider type.