Home daycare insurance
Most homeowners and renters policies exclude or sharply limit claims from a home business, and a daycare is one of the businesses insurers name. A home daycare needs a child care liability policy, or a daycare endorsement from your home insurer, that covers injuries to children in your care. Many providers add accident medical and abuse and molestation coverage. Some states require liability insurance or a written notice to parents if you don't have it.
Coverage to consider
| Coverage | What it pays for |
|---|---|
| General liability for child care | A child or parent is hurt and sues, such as a fall on the stairs or a bite from another child |
| Accident medical | Medical bills for a child hurt in your care, regardless of fault, often up to a set limit |
| Abuse and molestation | Defense and claims alleging abuse; often excluded from general liability unless added |
| Business property | Cribs, toys and equipment damaged or stolen; home policies often cap business property low |
| Commercial or business-use auto | Driving children to school or on field trips |
| Workers' compensation | Required in most states once you hire an assistant |
Questions to ask your agent
- Does my homeowners or renters policy exclude home daycare, and would an endorsement cover it?
- What's the per-occurrence and aggregate limit, and is it enough for my number of children?
- Is abuse and molestation included, and with what limit?
- Are field trips, swimming, trampolines or pets covered?
- Does it cover an assistant or substitute caregiver?
Lower your risk, and your premium
- Follow your state's licensing rules for ratios, safe sleep and supervision.
- Have a signed contract with emergency contacts and medical consent.
- Keep sign-in and sign-out records with times: they show who was in your care when.
- Write down every incident on the day, with what happened and who was told.
Records that show who was in your care. Daycare Binder Pro logs check-in and check-out on your phone and keeps every family's details in one place. Free templates for contracts and sign-in sheets. Pro is $12 a month.
Print a sign-in sheetIs home daycare insurance required?
It depends on your state. Some require liability insurance for licensed family child care homes; others require you to tell parents in writing if you don't carry it. Check with your licensing agency.
Is insurance tax-deductible?
A daycare liability policy is a business expense on Schedule C. Your homeowners insurance is deductible at your time-space percentage. See home daycare tax deductions.
Do parents need to sign anything about insurance?
Only if your state requires a notice. A clear contract and incident records help either way.
General information, checked October 31, 2026. Not insurance advice: read the policy and ask a licensed agent.