What Parents Need to Know About Liability Insurance for Daycares

Liability Insurance Requirements in Texas Daycares

Is it safe for parents to assume that their child’s daycare has liability insurance? Well, the not-so-simple answer is – verify, but don’t assume. In Texas, Licensed operations, registered child-care homes, and listed family homes are supposed to carry at least $300,000.00 in liability insurance. However, there are three concerning points that parents must know –

The first point of concern is that many exceptions to this law allow daycares a way out of the required minimum liability insurance.Throughout all of the daycare cases we’ve handled, two examples come to mind. The first is when the daycare cannot afford insurance. The second is when the daycare cannot find a company that’ll issue them a policy – meaning they’re uninsurable. The daycare is required to notify the state licensing agency of their lack of coverage and the reason why they’re not insured. More importantly – they are required to notify each parent, in writing, that they do not carry liability insurance BEFORE the child is admitted into their care.

If the daycare had insurance, but cancels the policy, they must notify each parent that they no longer have insurance within 14 days. Parents beware: “written notification” is satisfied by just posting notice in the daycare’s lobby or a quick note in a parent handbook. This is why it is important for all parents to have a copy of our free 10 step guide for finding a safe daycare.

In our guide, there are a few steps every parent can follow to prevent falling victim to a daycare’s lack of notice.

1. Read any notices or postings in your child’s daycare lobby
2. Read your handbook thoroughly
3. Check your emails from the daycare
4. Read through any letters you receive from the daycare

One of these may be a written notice that the daycare is no longer carrying insurance.

The second concerning point that parents must know is that:

-The minimum required amount of coverage is very low and should raise concerns for parents choosing a daycare.One of the most concerning aspects is that their policy can be exhausted as a result of prior claims – meaning for the year of coverage, their insurance has run out because it has paid out all the money it covers for that year as a result of previous claims for injuries and damages.

And the third concerning point – is that parents should be aware that all unlicensed facilities – like an un-registered or an un-listed home daycare – are NOT required by the state of Texas to carry any liability insurance at all and homeowners and renters insurance policies for the home or apartment would not cover injuries that happen at an at-home daycare.

This means that if your child attends an unlicensed, at-home daycare, and they get injured, there is likely no insurance to cover the damages, including medical bills.

Let’s consider a common example we all have thought about in the past – let's say you get into a car wreck with someone who has no insurance. You’re injured, your car is messed up, and you are trying to hold the person at fault accountable for the damages they caused you.

The Reality of Daycares Without Liability Insurance Coverage

The reality is, without the at-fault party having car insurance coverage – your options are slim. That’s why it’s essential that parents verify that the daycare they have chosen has liability insurance coverage. If your child is ever hurt at a negligent daycare, without liability insurance – you and your family are facing a very tough up-hill battle toward justice. If you have questions on what makes a safe daycare, download our free guide, 10 Tips for Finding a Safe Daycare, linked here.

If your child was injured at daycare, and you want to learn more about pursuing a claim against the daycare, reach out to us today. We are experienced in holding daycares accountable after causing serious injury to a child. Contact us today, and let us help you move forward.