When Is Insurance Mandated for In-Home Childcare?

When sending a child to daycare or childcare service, there is a sizable amount of trust being put in the teachers, faculty, and school itself. Families are trusting individuals with their children’s safety, social development, and early learning. It is the daycare’s duty to keep all children safe at all times. Unfortunately, that duty is not always fulfilled. There are tragic cases that cause trauma to the victim that often lasts for the rest of their life.

When issues do arise in which the childcare center is liable, it is mandated that in-home childcare programs have liability insurance to properly compensate the victim. The amount and type of coverage vary based on the type of in-home daycare. When in-home childcare centers fail to have liability coverage, there are consequences. For instance, license revocation, large fines, and closure of the center.

If your child, or a child you may know, has been injured at the negligence of their childcare center, Charles E. Boyk Law Offices can be a valuable ally. Our Mission at Charles E. Boyk Law Offices is to provide support to injured individuals by creating an individualized plan to help them recover faster, ensure bills are paid, help them get back to their true selves, and try to restore their quality of life as best as possible. Our experienced attorneys will help ensure that your case is handled properly and will fight to protect your child’s rights.

What Is Ohio’s Mandate on Liability Insurance in Childcare?

In the State of Ohio, under Ohio Revised Code § 5104.041, it is mandated for licensed Type A and Type B family child care homes to have liability insurance. Let’s break down what that means.

Providers that hold a license in the State of Ohio are those who:

Complete Pre-licensing orientation on the Ohio Profession Registry (OPR)
Pass the required background checks
Obtain a CPR and First Aid Certification
Pass a health and safety inspection
18 years old or older who possess a high school diploma or GED
Comply with annual, unannounced inspections

All of the requirements above are meant to keep children safe under their care. Ensure that your provider is licensed in Ohio to provide childcare.

Type A Home Provider

Provide care for 7 to 12 children in the provider’s personal residence.
If 4 children are under the age of 2, the provider can care for 4 to 12 children.
The provider’s own children, who are under 6 years of age, are included in the total count of children.
The provider must be licensed in the State of Ohio.

Type B Home Provider

Provide care for 1 to 6 children in the provider’s personal residence.
No more than 3 children can be under the age of 2.
The provider’s own children, who are under 6 years of age, are included in the total count of children.
The provider does not need to be licensed through the State of Ohio, unless they provide care that is paid for with public funding.

How Does Liability Insurance Work for Licensed Childcare Providers?

The requirements vary by the type of care or whether or not there is an obtained signed release from parents of the enrolled children has been obtained. The specific release states that the parents have a full understanding that the in-home family childcare provider does not carry liability insurance. There is a copy of this contract on the Ohio Department of Job and Family Services website.

Further, any unlicensed childcare providers are not mandated to carry liability insurance, but there are risks associated with enrolling your child at an unlicensed childcare provider.

The liability insurance must be able to cover liabilities arising from the operation of the family childcare, with minimum coverage of $100,000 per occurrence and $300,000 in the aggregate. Commercial and Center-based Daycares often carry much higher minimums at $300,000 per occurrence and $1,000,000 in the aggregate. There must be verification of proof of insurance on-site and available for inspection when prompted.

Why Insurance Matters Even When The Daycare Is Licensed?

It is important to know that insurance and licensure are not the same. Many times, it can be assumed that since an in-home daycare is licensed, it must be insured. That is not always the case. In-home daycare centers can operate without liability insurance if they obtain a signed release from the parent or guardian of the enrolled students.

So, when enrolling a child into a daycare, it is important to ask about licensure and coverage because the two do not have to operate together. Be aware of what documents you are signing on behalf of your child, and be aware of the consequences of a no liability policy in case of injury.

What Does Childcare Insurance Typically Cover, and What Does It Exclude?

Childcare insurance can be tricky, as there can be a million reasons for an injury. General business liability policies are usually the plans that daycares have, both in-home and commercial. They cover a variety of issues relating to damage or injuries that occurred on the premises of the daycare property.

There are some general categories that liability insurance will usually cover. Each coverage plan can cover different things, but below are some of the most common inclusions and exclusions for liability insurance.

What Does General Business Liability Cover?

General business liability insurance for in-home childcare covers both physical injuries and property damage.

Physical Injuries

The policy covers injuries to children, such as falls on the playground or any other injuries that occur on the campus of the facility. This can cover parents or guardians if they are injured during visiting, pickup, or drop-off.

Property Damage Claims

There may be scenarios like fire, vandalism, or water damage, but also situations where a student throws a ball, which breaks a neighbor’s window.

Common Exclusions in Liability Insurance

There are some common exclusions for business liability insurance that you should be aware of, which could affect a claim against an in-home daycare.

Vehicle Accident

Most standard polices do not include coverage for damages or injuries for transporting children. Most cases require a separate commercial auto policy.

Employee Injuries

General liability plans do not cover staff; a workers’ compensation claim is required.

High-Risk Activities

When child-care centers offer high-risk activities like trampolines, swimming pools, or other types of dangerous equipment are not included in the coverage plan.

What If The Daycare Does Not Have General Business Liability Coverage?

It is mandated for in-home daycares to have insurance, unless a release is signed, because it helps every party involved. It saves the daycare money and protects them from direct costs, but it also allows for compensation to the injured. It only makes sense to have coverage.

If a daycare fails to follow the state mandate and there is no signed waiver, then the business is responsible for all legal defense costs in the event they are sued. The daycare is responsible for paying any medical bills and settlements arising from the plaintiff’s injuries. As this can become expensive quickly, oftentimes, daycares will run themselves into financial ruin attempting to pay legal fees and judgments out-of-pocket. If the provider does not have the finances to pay said fees, then the plaintiff’s parents will have to go after the provider’s personal assets to obtain compensation.

If an in-home daycare fails to have the mandated liability insurance, it can be heavily fined by the Ohio Department of Children and Youth. The DYO will assess the situation and base their next steps on the severity of the violation. The DYO can immediately close the operation or have the daycare’s license revoked. The daycare can be fined between $100 to $500 per child per incident for failing to hold proper insurance coverage. The penalties can work independently or collectively; the discretion is up to the Ohio Department of Children and Youth.

What Should You Do Before Enrolling Your Child in a Daycare?

Research the facility before enrolling your child. Look for past violations, Google reviews, and ask other parents about their experience with the facility.

Then, ask the daycare for a Certificate of Insurance before enrolling your child to ensure that coverage is present and applicable in the instance of injury. Be sure to ask what their policy includes or excludes. Exclusions could be applied to transportation, field trips, abuse-related claims, etc. Ensure that the provider is licensed in the State of Ohio to supervise and care for children.

Also, ask if the daycare has proper surveillance, staff-supervision rules, pick-up and drop-off procedures, how incidents are documented, etc. Also, find out about the daycare’s safety procedures. Ensure that staff are trained in CPR, first aid, and emergency response.

House Insurance vs. Daycare Insurance

Many daycare services are offered out of homes as businesses, but in any event, a liability policy for the business is still required. In Ohio, homeowner’s insurance does not cover any business activities like an in-home daycare service. Such insurance is meant to cover personal property and liability claims as it relates to the home.

Therefore, for in-home daycare businesses, homeowners’ insurance is not sufficient for liability coverage for the business. A separate liability policy needed to be obtained because homeowner’s insurance excluded business risks.

Real Life Cases

Our firm has first-hand experience working with childcare negligence cases and providing compensation for families who have suffered from the effects of their child’s injuries.

Our firm handled a case where a three-year-old child was restrained to a cot in a dark room by themselves while at school. Then, the child was removed from the room and bullied by three teachers. The mother was called by the daycare saying that her child had “bad behavior”. When the mother spoke to her child, her child was upset and said that they were being yelled at while at school. Video surveillance showed the story of the child to be true. The effects of such trauma caused the child to scream during nap time, refuse to sleep, and now has psychological trauma from the incident.

Cases like these are heartbreaking, and sadly, they are not alone. When facilities fail to meet their legal duties, situations like these often occur. Other common daycare cases are related to:

Children being left unsupervised
Improper restraint
Unsafe sleep practices
Staff Abuse
Playground Injuries
Releasing a child to the incorrect person
Failure to respond to medical emergencies

Our firm handled another case where a mother dropped her child off at a daycare and went to return many hours later to pick her child up. When she arrived, the lights were off, and the school seemed to be empty. The mother called the owner and received no response. The mother knocked for 20 minutes, worried sick about the whereabouts of her six-year-old child. Eventually, her child opens the daycare door and is by themselves in the daycare in complete darkness. The child has sadly suffered from trauma and psychological injuries as a result of such negligence.

If My Child Were Injured At School, What Do I Do Next?

In such a situation, stress can be high, and it can be difficult to know where to turn next. First and foremost, get medical care for your child. Take any photos of any injuries if applicable. Reach out to the school and obtain a written report of the incident and any photos or videos of the incident. Preserve all evidence and reach out to legal counsel if you feel you may need legal representation.

If your child or a loved one is harmed in a daycare setting, there are two main avenues one can take. If there is intentional harm or abuse to the child, criminal charges may be applicable. If there are medical bills, therapy, and emotional suffering, compensation can be granted in a civil lawsuit.

Reach Out to An Experienced Ohio Child Care Attorney Today!

If your child or a loved one was injured at a daycare or childcare center, you need a skilled personal injury attorney to navigate your case and secure the compensation they deserve. Here at Charles E. Boyk Law Offices, our experienced child care attorneys are dedicated to helping you through these difficult times because we have stood in your shoes and know how difficult this is to process. As one of the top-rated personal injury firms in Ohio, we understand the complexities of childcare injury cases and will work tirelessly to ensure that you receive the compensation and justice that you are entitled to.

Reach out to us today for a free case evaluation and discover how we can assist you in getting the justice and financial recovery you need. If we are unable to take your case, we will refer you to someone who may. Let us put our experience, connections, and expertise to work for you and support you every step of the way.