Preschool Liability Insurance

WHY LIABILITY INSURANCE IS IMPORTANT FOR YOUR PRESCHOOL

Anytime you’re operating a business with children involved, you’ll want to have liability insurance. A parent signing a “waiver” or “release of liability” will not protect you from getting sued if you are found liable or negligent while they are in your care. That’s why you want to have liability insurance.

Think of protecting everyone in this order:

• You do your best to protect your students while they’re in your care
• If something happens while they’re in your care, your liability insurance should pay for the damages
• If the damages are MORE THAN the liability insurance coverage limits, the court might try to seize your business assets to pay for the remainder of the damages, but they can’t touch your personal assets if you have an LLC.

In other words: You do your best, your liability insurance protects your business assets, and your LLC protects your personal assets. All 3 are vital!

Although a local preschool has the highest liability (and therefore I recommend all local preschools have insurance)… an online preschool still has some liability, so online preschools can choose whether or not they want to get liability insurance (I still recommend online preschools have insurance). You will also need liability insurance if you want to rent a building or a facility for your preschool or a performance like a graduation. You might need to be licensed FIRST before you can qualify for insurance.

HOW TO GET PRESCHOOL LIABILITY INSURANCE

Insurance rates vary, but typically you can get a year-long policy and pay monthly installments. (The first month’s payment might be a little more expensive.) With our home preschool, we paid about $40/mo.; with our home and schoolhouse locations I paid about $80/mo. If you find a policy around $480/yr. for 1 location, then that sounds about right.

Things to Explain About Your Preschool to Your Liability Insurance Agent

• The fact that you’re starting a preschool (not a daycare)
• The fact that you will only be open for a few hours (not 12-hrs./day)
• Whether or not you will be licensed
• Whether or not your pets will be around the preschoolers
• The fact that you only teach 3- to 5-year-olds (no babies), you don’t do nap time, you don’t change diapers, and you don’t transport children
• Whether or not you have a gated pool, a 6′ fence surrounding your backyard, or any other modifications you’ve made to protect children
• Ask what paperwork you need to bring or send to them. They might ask for your completed EIN, DBA, LLC, and/or licensing forms.

List of Insurance Companies our Preschool Owners Use (If You’re Not Licensed):

• Your home insurance provider (Call them up and ask if you can add a “rider” of liability insurance coverage for your preschool.)
• Farm Bureau or Farmer’s Insurance (Call up your local agent and ask if you can fill out an application for commercial liability insurance for your preschool.)
• Next Insurance (we recommend you try this one: They will give you insurance for 3 months as you begin your licensing process)
• Assure Child Care (this is for childcare owners; i.e. preschool owners)

List of Insurance Companies our Preschool Owners Use (If You’re Licensed):

• Hartford (this is for other educational services/schools)
• Markel (this is for commercial childcares, i.e. preschool centers)
• Markel (this is for in-home childcare providers, i.e. home preschools)
• Markel (this is for other educational services)
• Bunker (this is for on-demand insurance and might work for preschool)

Liability Insurance Coverages You’ll Want:

• $0 deductible
• $1,000,000 per occurrence limit
• $3,000,000 aggregate policy limit