Insurance Needs for a Licensed Home Daycare Business

Home Daycare – Licensing, Insurance and Other Key Aspects to This Business

In today’s economy, many young parents rely on daycare services to help care for their children throughout the work week.  In a vast majority of such cases, the children are in need of full-time supervision that unfortunately cannot be provided by a trusted family member or friend or by the parents themselves; it goes without saying that there will be an associated cost for using this type of service.

On the other side of the coin, more and more stay-at-home parents are looking for ways to supplement their overall family income.  While there is an innate sense of gratification to raising a child or children on a full-time basis, the family is essentially sacrificing some earning potential as only one parent is employed; thus, one solution in such cases would be to operate a home daycare business.

A home daycare business allows stay-at-home parents to tend to the needs of their own children while generating additional income by caring for the children of other parents on a part-time basis; and since there are many families in need of such services, as outlined above, there would appear to be an ideal match between the two sets of circumstances.

However, one factor that often concerns young parents who require daycare services for their children is the fact that the vast majority of these businesses are unlicensed.  It is estimated that the licensed sector provides spaces for only 20% of the children currently in daycare; this means there is very little that government agencies can do to certify the quality of care provided and the safety of the children, other than perhaps a leap of faith on the part of the parents themselves.

To counteract this situation, the Ontario government recently announced a plan designed to encourage more home daycare businesses to join licensed agencies; one aspect of the plan includes the provision of funding to support 100,000 additional licensed child-care spaces across the province for children under four years of age.

So what does this mean for both the home daycare provider and the parents who rely on these services?  As a member of a licensed agency, the home daycare business becomes eligible for the following:

  • Agency staff visits at least four times per year
  • Help to ensure that it meets ministry standards
  • Use of toys and equipment on a provisional basis
  • Offers of professional development for caregivers
  • Information-sharing with respect to insurance costs
  • Back-up support in the event of illness or emergency

This is clearly a more advantageous setting than any provided by an unlicensed daycare, not to mention the comfort and peace of mind that it offers to the parents and the better quality of care and safety afforded their children when under care in such environments.

Knowledgeable Brokers with Extensive Experience in Home Daycare Insurance

Insurance Needs for a Licensed Home Daycare Business

As indicated above, one of the benefits to operating a licensed home daycare business is the availability of information pertaining to insurance rates; this is a fact that should not be just glossed over or overlooked altogether, because proper coverage is a fundamental aspect to running any type of small business.

Home daycare insurance should include the appropriate coverage for any equipment and furniture associated with operating the business, such as:

  • Computers
  • Portable cribs
  • Change tables
  • Cots/guest beds
  • Tables, chairs, stools
  • Shelving/storage units

However, the most essential component within any type of business insurance is liability coverage.  Caring for children in one’s home, especially children that do not reside in the home on a permanent basis, carries a significant amount of liability; thus any operator of a home daycare must be sufficiently covered in this regard

Our knowledgeable professionals at Petley-Hare Limited have been counselling business owners on their insurance needs for almost 100 years.  By consulting with our experts, home daycare operators can evaluate their complete insurance needs, including liability protection, and determine the best way to incorporate this extended coverage into their homeowner policy or tenant insurance – and at the best possible rate.

Go to to obtain further information on the support available from the business insurance experts at Petley-Hare Limited in Oshawa.

If you are currently running or planning to start a licensed or unlicensed home daycare service, make sure you have adequate insurance for such a business, especially from the standpoint of liability coverage.  Call the experienced insurance brokers at Petley-Hare Limited in Oshawa today at 1-800-216-5324 to speak with one of our knowledgeable business insurance specialists or contact us to request a no-obligation quote.