• Home insurance and your private day care business: Are you well insured?

    10 October 2018Christopher Johnson

    You’re very excited to be launching your very own private home day care centre! In order to fully appreciate the joys of this wonderful project, however, Assurances Multi-Risques would like to offer you a few home insurance tips.

     

    Rule #1: Inform your insurance agent or broker that there will be a professional activity going on in your home. Standard home insurance contracts do not cover professional activities. Rule #2: Contact your insurer in order to find out if he agrees to offer coverage for a private day care. Unfortunately, many insurers refuse to cover this type of activity. Avoid having a claim turned down because you have forgotten to mention this activity to your insurer since this could cost you your most important asset, i.e. your home.

     

    A few key factors to take into account

     

    When planning to open a private day care, it’s important to take into account a certain number of things that could impact your home insurance contract.

     

    – Check with your insurer the number of infants (babies under 18 months of age) that you are allowed to take on since numbers are usually limited.

     

    – Ask your insurer if you are allowed to care for mentally or physically handicapped children.

     

    – Be careful about animals on your premises. Your insurer might refuse to insure you if you keep animals and reptiles in your home. If you have dogs, make sure they are kid friendly. If you have cats, your insurer could well ask you to have them declawed.

     

    – Make sure that your day care premises are fenced in and safe.

     

     

     A few insurance options for your home day care business

     

    Your home insurer has just agreed to cover your home day care center? Congratulations! Here are a few insurance possibilities available to you.

     

    – Add a civil liability extension clause for your day care.

    This will ensure that you are covered if a child hurts himself on the day care premises.

     

    – Add a professional liability or other form of guaranty extension clause (error and omission).

    Did you know that administering medication to children is not included in the basic civil liability extension clause? That’s why you must subscribe to a professional liability or other form of guaranty extension clause.

     

    – Add a homeworker clause to your contract.

    Your professional assets are usually limited to what is stated in your home insurance contract. Therefore, all the material used for your day care, including toys, is considered as a professional asset. A homeworker clause will allow you to increase your amount of professional assets coverage. Moreover, this additional coverage may also protect you in case of loss of revenue due to the day care’s closure following a claim.

     

    We know it’s not always easy to choose among the many possibilities offered for day care insurance coverage. That’s why we strongly encourage you to contact an insurance broker who will be able to adequately inform you and to guide you in your choices. By doing this, you will be free to fully enjoy the presence of your little ones!