Question 1

What insurance does Texas HHSC require for daycare centers?

Accepted Answer

The Texas Health and Human Services Commission (HHSC) requires licensed childcare centers (CCCs) to carry general liability insurance with a minimum of $300,000 per occurrence. HHSC also requires documentation of insurance at initial licensing and at each renewal. Family home daycares (licensed for 3–6 children) have lower requirements but must also carry liability coverage. HHSC does not mandate specific abuse/molestation coverage limits, but virtually all childcare insurance policies include it as standard — and it is essential for any daycare operating with children.

Question 2

How much does daycare insurance cost in Texas?

Accepted Answer

Texas daycare insurance is moderately priced — below California and New York but above many Southeast states. Home daycare (3–6 children): $60–$120/month (GL + A&M). Small center (7–30 children, licensed facility): $150–$350/month. Mid-size center (30–60 children, employees): $350–$700/month (add WC). Large daycare center or preschool (60+ children, multiple staff): $600–$1,500/month. Texas has no mandatory WC, so many smaller daycare operations elect WC voluntarily — which is strongly recommended given the child-handling injury exposure.

Question 3

Do Texas daycares need abuse and molestation coverage?

Accepted Answer

Absolutely — this is non-negotiable for any childcare facility. Abuse and molestation (A&M) coverage defends your business against accusations of inappropriate conduct toward children, even when the accusations are false. Standard GL policies explicitly exclude abuse and molestation claims. A single A&M claim — even a false allegation — can cost $50,000–$300,000+ in legal defense. HHSC-licensed facilities should treat A&M coverage as baseline, non-optional coverage, alongside GL. Best practice: A&M coverage should be bundled with your GL at the time of policy purchase, not added as an afterthought. Confirm the sublimit is $1M minimum.

Question 4

What is the difference between a licensed childcare center and a home daycare in Texas?

Accepted Answer

Texas HHSC licenses two main types: (1) Licensed Childcare Centers (CCCs) — serve 7+ children, operate in a commercial or institutional facility, must meet building code, fire safety, and space requirements. Require $300,000 GL minimum. (2) Licensed Home Daycare (Family Homes) — serve 3–6 children in the provider's own home. Have lower facility requirements but still require HHSC licensing and liability coverage. Additionally, Texas has a "Listed Family Home" designation for daycares serving 1–2 unrelated children — minimal requirements apply. Insurance needs differ: home daycares may be eligible for a homeowner's policy endorsement, while larger centers require a commercial childcare policy. Confirm with your insurer which license type you hold.

Question 5

Does Texas daycare insurance cover transportation of children?

Accepted Answer

Standard GL does NOT cover transportation. If your daycare operates a van or bus to transport children (field trips, school pickup/dropoff), you need commercial auto coverage specifically rated for passenger transport of minors. Personal auto policies and standard commercial auto may exclude or limit childcare transportation — get a specific commercial auto policy for your daycare van with passenger liability coverage confirmed in writing. Texas commercial auto minimums for child passenger transport: minimum $300K combined single limit, with $1M recommended for licensed childcare transport. Additionally, any vehicle transporting 15+ children requires a school bus endorsement and CDL driver in Texas.

Market	Small Center (30 kids)	Mid Center (50 kids)	Notes
Dallas / Fort Worth	$200–$380	$400–$720	Highest in TX (metro litigation + enrollment density)
Houston	$190–$360	$380–$680	High (diverse market, chemical plant area exposure)
Austin	$185–$350	$370–$650	High (tech-adjacent demographics, fast growth)
San Antonio / Rural TX	$155–$300	$310–$560	Below avg (lower cost market, less litigation)

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