Best Daycare Insurance 2026

Daycare centers need: (1) General Liability — covers child injuries on your premises, parent slip-and-falls, and property damage. $1M–$2M per occurrence is standard. (2) Abuse & Molestation Coverage — this is non-negotiable for any childcare business. Standard GL explicitly excludes intentional acts including abuse — A&M coverage fills this critical gap. (3) Workers' Compensation — required in most states with employees; daycare workers face ergonomic injuries, illness transmission, and child behavioral incident injuries. (4) Commercial Property — covers furniture, equipment, playground equipment, and supplies. Many states require daycare-specific insurance as a condition of licensing.

Abuse and molestation (A&M) coverage is a specialized liability coverage that responds to claims of sexual abuse, physical abuse, or molestation occurring on your premises or by your employees. Standard GL policies explicitly exclude these claims. Without A&M coverage, a single allegation — even if ultimately unsubstantiated — can cost hundreds of thousands in legal defense costs alone. Every licensed daycare center should carry A&M coverage. Some states require it as a condition of childcare center licensure.

Home daycares need most of the same coverage types, but at lower limits due to smaller scale. Critical: your homeowners policy does NOT cover business operations in your home — you need a separate commercial GL policy for home daycare. Home daycare insurance needs: GL ($300,000–$1M per occurrence), abuse & molestation coverage, and business property coverage for daycare equipment. Some states require home daycare insurance as a condition of home daycare provider licensing.

Home daycare (1–6 children): $75–$150/month for GL + A&M coverage. Small commercial daycare center (10–25 children, 3–5 staff): $200–$500/month including GL, A&M, property. Large daycare center or multi-location: $500–$1,500+/month. A&M coverage adds meaningfully to premiums — budget $50–$150/month for standalone A&M coverage depending on capacity and history. WC adds $150–$400/month for most small daycare operations.

Rarely — and this is one of the most dangerous gaps in daycare insurance. Standard GL policies contain an absolute exclusion for intentional acts, abuse, and molestation. Some specialty daycare GL policies or childcare-specific BOP packages include limited A&M coverage, but the sub-limits are often inadequate. The safest approach is to purchase standalone A&M coverage with appropriate limits ($1M+) in addition to your GL. Verify with your specific carrier whether any A&M is included and what the sub-limit is.