Ohio Connection State Family Child Care Association

Questions to Ask About Business Liability Insurance

1. Will the liability insurance cover injuries that occur away from provider's property (field trips, bus stops, parks, etc.)?
2. Are food illnesses and dispensing of medicine covered?
3. If a lawsuit occurs, will insurance provide immediate money for legal defense?
4. Are allegations of corporal punishment covered?
5. Are the actions of helpers and volunteers covered?
6. If a provider;s pet causes an injury, will insurance cover the medical costs?
7. Who pays the first dollar (emergency room, clinic visit) for "slip and fall" injuries to the children?
8. Can I get sexual/physical abuse coverage?  What are the limits available?
9. Is all my property used in my business covered under my homeowners insurance or do I need a rider for my business liability insurance?
10. Is my business income protected if something happens to my home and I have to close my business for a period of time due to flood, fire, storm damage, etc.?

 The amount of coverage your business liability provides is important.  A provider should get as much as she can afford.  Generally, a million-dollar policy is recommended.

This information was obtained at a workshop presented by Tom Copeland-Redleaf National Institute.

Types of Business Insurance

Business (also called commercial ) Liability Insurance Policy covers

• General liability coverage for accidents and lawsuits against your business
• Professional liability coverage to protect yourself in case you failed to adequately supervise the children in your care.
• Legal defense in which the limits of this coverage are in excess of the general liability limits.
• Sexual abuse coverage with separate liability limits covers you, your family, and your employees.
• Medical ("no fault") coverage to cover expenses when children are injured.
• Coverage for accidents when you are away from your home with the children.
• Renters want the ability to list their landlord as an "additional insured".
• The policy should be an occurence form, not a claims made policy.
• The company has an "A" rating from the Best Company

Business Property Insurance Policy

• This policy covers the cost to replace all property used in your business (equipment, furniture, appliances, toys, etc.)
• Coverage for business loss of income if your business is shut down because of a fire, bursting pipes, etc.

Car Insurance Policy

• If your car is used in your business, this policy covers you for injuries and damages suffered in car accidents while using your car for business purposes.

Workers' Compensation Insurance Policy

• If you have employees, this policy covers them for injuries suffered while working for you.