Home daycare insurance is a specific type of coverage that protects you, your property and your daycare business from insured losses. Suppose someone sues you for allegedly causing bodily injury. In that case, you'll be able to get compensation from your insurance provider to cover litigation-related expenses such as attorney fees, court fees, and, if you are found liable, settlement costs up to the coverage limits listed on your policy. Since the coverage limits on your standard home insurance policy are not sufficient to cover liability protection for issues related to your daycare business, it's important also to increase the coverage limits for your personal liability insurance and insurance companies generally increase the daycare liability insurance premiums per child at a rate that is commensurate with the amount of coverage you need or want.

In Ontario, both licensed and unlicensed home daycare services are legal. Of course, both types of daycares are subject to regulatory requirements that are put in place to keep children safe, but some requirements differ in key ways. Hence, it's important to understand the rules and regulations that govern unlicensed daycares thoroughly. Unlicensed daycare operations take place in a private home setting and are typically run by a parent who wants to be able to bring some income into their household while remaining at home with their own children. A home insurance endorsement is recommended for home daycare insurance in Ontario for these types of childcare operations.

A standard homeowners insurance policy has an exclusion clause in the personal liability protection segment that excludes liability coverage for business pursuits or any business use of the premises. This would naturally mean that your personal liability protection would not apply to any situation related to your home daycare operations.

A home daycare insurance endorsement changes your home policy by removing that personal liability protection exclusion and replacing it with a clause that excludes business pursuits or any business use of the premises except your daycare operation, as you have described it in your declaration. The declaration includes information such as how many children are under your care, their ages, the location of your home daycare, etc. If you have cyber liability insurance coverage as part of your homeowner's insurance policy, it may also be altered slightly to change the definition of a fraud event. When adding an endorsement for home daycare insurance, Ontario policyholders should take the time to ensure they fully understand all changes to their homeowner's policy. The best way to do that is by starting a home daycare insurance quote with your knowledgeable Morison Insurance broker.

According to the childcare rules put in place by the Ontario government, unlicensed childcare providers may care for a maximum of five children under the age of 13 and a maximum of three children under the age of two. It's important to note that this includes the caregiver's own children if their children are younger than four years old. For example, if an unlicensed daycare provider has a one-year-old and an eight-year-old of their own, they could potentially care for two more children under two years old and four more children in total because their eight-year-old, being over the age of four, doesn't count toward the entire total while their one-year-old, being under the age of four, is included in the maximum of five children altogether.

That being said, insurance carriers may have their own specifications about the number of children who can be covered by the insured's personal liability extension for home daycare insurance in Ontario. For example, an insurance company may simply specify that the coverage can not be extended to more than five children in total under the age of 12, including the insured's own children under 12. Because insurance companies may have varying limits for the number of children that are allowable and can be covered, it's important to speak with a qualified broker at Morison Insurance who can ensure you have the right home daycare insurance in place to provide coverage for each and every child in your care.

When it comes to a personal liability extension for home daycare insurance, Ontario policyholders should be aware that this coverage does not extend to litigation for issues such as sexual abuse, mental abuse, emotional abuse, molestation, harassment or physical abuse, including corporal punishment. It also does not apply to allegations that the daycare provider failed to take steps to prevent the above from occurring.