Childcare facility insurance for daycares, preschools and youth programs
Parents trust you with their children, and your coverage should protect both the children in your care and your business. We build childcare programs across the Pacific Northwest, from home-based daycares to multi-room centers.
Coverage made for childcare
From playground accidents to abuse claims, food allergy events to transport issues, childcare facilities face risks that need specialized coverage, and a standard business policy doesn't fit. Gaps in coverage can affect your personal assets and reputation as well as your business.
According to the National Association for the Education of Young Children (NAEYC), proper insurance is a cornerstone of quality childcare operations. In childcare you're protecting children and helping families, and the right insurance is part of that commitment.
Core childcare coverages
The key protections every childcare provider needs.
General liability
The foundation of a childcare program: bodily injury and property damage claims, whether a child falls on the playground, a parent slips in your lobby or a child damages another family's belongings.
- Child injuries during activities
- Parent and visitor injuries
- Property damage claims
- Personal and advertising injury
- Medical payments coverage
- Legal defense costs
Abuse & molestation
Protects against claims of sexual, physical and emotional abuse by staff, volunteers or others at your site. Standard policies exclude abuse claims, so this coverage must be added specifically.
- Sexual abuse claims
- Physical abuse claims
- Emotional abuse claims
- Negligent hiring claims
- Negligent supervision
- Defense costs and settlements
Professional liability
Claims that your childcare services caused harm: failure to supervise, negligent care, failure to meet developmental needs or to spot learning issues.
- Failure to supervise claims
- Negligent care claims
- Developmental harm claims
- Educational negligence
- Failure to report concerns
- Professional advice liability
Commercial property
Your building (if owned), furniture, cribs, changing tables, toys, learning materials, kitchen equipment and play structures. Business income replaces lost tuition during repairs.
- Building and improvements
- Furniture and equipment
- Learning materials and toys
- Playground equipment
- Business income / lost tuition
- Extra expense coverage
Check how your policy treats abuse claims
A single abuse claim, proven or not, can cost more than $100,000 in legal fees, and settlements can reach into the millions. Standard general liability policies almost always exclude abuse, and many operators assume they're covered when they aren't. Dedicated abuse coverage pays defense costs and settlements for employee and volunteer misconduct, negligent hiring, failure to supervise, background check failures and organizational liability. The federal Office of Child Care also emphasizes the importance of proper coverage.
Review your coverageCoverage for every type of childcare program
Daycare centers
Full-day care for infants through school-age children, including meals and activities.
Preschools
Early childhood programs preparing children for school.
Before & after school
Care outside school hours, including transport, homework help and activities.
Summer camps
Day and specialty camps with outdoor activities and field trips.
Home-based childcare
Licensed childcare from private homes, with protection for in-home business risks.
Church-based childcare
Childcare and preschools run by religious groups, coordinated with existing church policies.
Montessori schools
Specialized equipment and teaching approaches.
Head Start programs
Federally funded early childhood programs, with policies that meet federal rules and grant needs.
Infant care centers
The distinct risks of caring for infants and toddlers.
Special needs childcare
Facilities providing specialized care and therapy services.
Nanny agencies
Agencies placing childcare providers in homes, including placement liability.
Drop-in childcare
Hourly care with varying schedules and visitors.
Additional childcare coverages
Hired & non-owned auto
Protection when moving children in employee cars or rented vehicles, essential for any facility that transports children.
- Field trip transport
- Employee vehicle use
- Rented vehicle liability
- Before/after school transport
- Emergency transport
Workers' compensation
Medical costs and lost wages when staff are hurt lifting children, on playground duty or through illness exposure.
- Medical treatment costs
- Wage replacement
- Rehab expenses
- Disability benefits
- Employer's liability
Directors & officers
Protects board members and management from claims of wrongful acts, mismanagement and breach of duty.
- Mismanagement claims
- Fiduciary duty breaches
- Regulatory violations
- Employment decisions
- Financial oversight failures
Cyber liability
Data breaches involving children's records, family contact information and payment data.
- Data breach response
- Parent notification costs
- Credit monitoring
- COPPA compliance
- Ransomware / extortion
Employment practices
Claims by staff alleging discrimination, harassment or wrongful termination.
- Discrimination claims
- Harassment claims
- Wrongful termination
- Wage and hour disputes
- Retaliation claims
Commercial umbrella
Extra liability limits above general liability, auto and employers liability when a serious event uses up primary limits.
- Excess over primary policies
- $1M–$10M+ limits available
- Extra defense costs
- Broader coverage scope
How your coverage applies when things go wrong
Illustrative childcare claims and the coverage designed to respond.
Child falls from equipment
A 4-year-old falls from the monkey bars and breaks an arm. The parents sue, claiming poor supervision and unsafe equipment.
Illustrative example. Real outcomes depend on the facts and your policy terms.
Risk control for childcare facilities
Good policies, procedures and training reduce incidents and show due care if a claim arises. Carriers consider your risk control when pricing, and we connect you with resources for staff training, policy development and safety upgrades.
Background checks
Full screening for all staff and volunteers.
Written policies
Clear procedures for supervision and emergencies.
Staff training
Regular training on safety, CPR and abuse prevention.
Supervision ratios
Meeting or exceeding licensing rules.
Documentation
Thorough records of incidents and communications.
Facility safety
Regular inspections, secure entry and safe equipment.
Emergency plans
Practiced procedures for fire, lockdown and medical emergencies.
Parent communication
Clear policies and prompt incident reporting.
Common childcare coverage gaps
The gaps we see most often, and how to fix them.
Weak abuse coverage
Many policies exclude abuse or provide low limits, and facilities discover the gap only when a claim arises.
- The fix: make sure your policy includes specific abuse coverage with limits of at least $1 million, and review the policy language carefully.
No transport coverage
Field trips create auto liability, and general liability doesn't cover vehicle accidents.
- The fix: add hired and non-owned auto if you ever move children, and carry adequate commercial auto if you own vehicles.
Low liability limits
Serious injuries to children can lead to claims in the millions, and minimum limits leave personal assets exposed.
- The fix: carry at least $1 million in general liability with a commercial umbrella. The cost difference is typically small.
Volunteer coverage gaps
Some policies don't cover volunteer actions, leaving you unprotected if a volunteer injures a child.
- The fix: verify your policy covers volunteers, and apply the same background checks and training as for paid staff.
Weak background check steps
If an employee harms a child and their history should have been discovered, you can be held liable for negligent hiring.
- The fix: run full checks, including criminal history, sex offender registry, references and job verification, and document every step.
No business income coverage
A fire or water loss can close you for months while fixed costs continue.
- The fix: include business income and extra expense in your property policy, with limits based on monthly tuition and fixed costs.
Resources for childcare providers
NAEYC
Accreditation, resources and best practices for early childhood programs.
Learn more →Office of Child Care
Federal resources and technical help from the U.S. Department of Health and Human Services.
Learn more →Child Care Aware
Resources, referrals and support for childcare providers and families.
Learn more →WA State DCYF
Washington licensing information and requirements for childcare providers.
Learn more →Brokers who understand childcare
Childcare experience
We understand childcare operations, the regulatory setting and the coverage that protects you.
Specialized markets
We work with carriers that specialize in childcare and write policies designed for the industry.
Coordinated programs
Liability, abuse, property and auto packaged so there are no gaps between policies.
Market comparison
As a broker, we compare options across carriers to balance protection and price.
Claims support
When incidents happen, we help you through the claim toward a fair, prompt resolution.
Since 1992
We've insured Pacific Northwest childcare businesses for more than three decades.
Get your childcare facility insurance quote
Tell us about your facility and a specialist will contact you.
- Abuse and molestation coverage with dedicated limits
- Programs for centers, preschools, camps and home daycares
- Or call (800) 800-9644
Have a current policy or loss runs? You can email them to info@firstunderwriters.com after you submit.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.