Category: Human Services Insurance
Day Care Insurance
Day Care Insurance requirements can vary from state to state, however, regardless of requirements there are basic coverages that should be in place. These coverages serve to protect against lawsuits that could be filed against the Day Care, cover damage to buildings, injuries to workers and also injuries to children.
General Liability (GL) is always the starting point in which day cares should begin. This coverage type is going to protect the business owner against alleged liabilities that may stem from a trip and fall to general damage to another. However, it is very important to realize that there are two specific liability coverages that ought to be in place.
The first liability coverage for a day care that should be in place is Abuse and Molestation coverage. Without this coverage a day care would be on their own concerning defense costs and any settlements in regards to allegations of abuse or molestation. Of course this can be extremely costly to pay out, thus purchasing this extra coverage in addition to the GL is certainly a must since it is triggered whether the allegation are true or false.
The second liability coverage for a day care is Professional Liability which would protect the day care from accusations of material being taught or even things that were said in class by a teacher. It can extend all the way to certain cases where medicine is being distributed by a teacher in different scenarios. Of course for all coverage it is vital to read the policy as each insurance company can be different.
Many Day Cares also have an Accident Policy that will pay for injuries incurred while the child is under the supervision of the day care. Normally a day care may have a child with a broken bone, cut, or any other type of accidental injury. These policies can have different limits and coverage so once again as with any other insurance policy it is important to read the coverage and understand how it pays.
Property Insurance is the same here as it is with most other commercial property coverage types. In short it protects the building in the event of a covered cause of loss as well as lost income.
One other insurance that is a must if any driving operations are present is of course auto coverage. Many day cares make the mistake of under insuring their autos. The minimum for any day care should be at least a Combined Single Limit of $1,000,000. Of course if the Day Care has a larger exposure with multiple vans and buses it is always a good idea to either have a higher limit or a $2,000,000 umbrella over top. This should be discussed with the insurance agent to determine desired limits.
This leads us to the last coverage that should be in place as mentioned before, an Umbrella. The umbrella for a day care will cover over top of the GL, Auto, and in some cases the Workers Compensation. Umbrellas vary greatly so it is very important to carefully understand which lines of coverage the umbrella will go over top of. Keep in mind that Workers Compensation is mandatory in most states but not all therefore this coverage should be discussed further with a local insurance agent.
Home Health Care Insurance
Home Health Care Insurance programs are designed to cover the unique risks associated with caring for the elderly or physically disabled. Although General Liability, Property and Auto coverage are the basics of any Home Health Care Insurance Program the programs will tend to add in or include more specific types of coverage that home health agencies face.
The first is Hired and Non-owned. Because the majority of home health agencies hire nurses or care-givers who use their own personal vehicle to visit patients or clients this is a large risk. Because many individuals only carry the minimum insurance limits and requirements, this may lead to a home health agency being brought into a suit as a result of one of their nurses being involved in an auto accident. By having Hired and Non-owned coverage this will cover the business for accident(s) their employee may be involved in during work. Keep in mind that the employee’s auto insurance is primary in most cases.
The second is Abuse and Molestation. In the event of an accusation whether founded or not the allegation in and of itself is damaging to any business. The cost of legal fees to public relations is very expensive. Without Abuse and Molestation coverage the home health agency can find themselves in serious financial distress as a result. With Abuse and Molestation coverage the policy will pay for costs to defend which can either be in addition to policy limits or within. And of course it will cover any settlements up to the policy limits.
The third coverage that is essential is Professional Liability for nurses and care givers. In essence this coverage will cover the nurses within their professional scope of work. By having this coverage provided for all nurses and caregivers instead of trusting the nurses to carry their own, it protects the business from lapsed or expired policies which would then come back on the business in the event of a claim.
The above mentioned coverage are absolutely essential to any solid Home Health Care Insurance Program to guard against the specific risks associated with running a home health care agency. However, these are just a few of a number of coverage types and policies. It is always best to discuss your insurance program with your Insurance Carrier to see if there are other coverage that may apply.
