If a home daycare provider has not arranged for liability coverage and a child is injured in any way, the home owner could be personally responsible for all damages. Therefore, it is important to purchase in-home childcare insurance if you have been or plan on starting a daycare business.
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Insurance for Home Based Daycare

Home insurance provides personally liability coverage for bodily injury and property damage to other people. However, the standard personal property insurance policy (homeowners, tenants or condo) does not extend liability coverage to any types of business use of the property including home daycare businesses. Occasionally, babysitting in your home is not considered a business, but when it becomes a day care business (defined as regularly caring for children on a regular schedule while receiving financial compensation), personal liability coverage would not apply.

If a home daycare provider has not arranged for liability coverage and a child is injured in any way, the home owner could be personally responsible for all damages. Therefore, it is important to purchase in-home childcare insurance if you have been or plan on starting a daycare business. Most of the time, this coverage can be added by rider to a homeowners, tenants, or condominium policy thereby eliminating the need to purchase a separate policy.

Some insurance companies offer the following protection through their coverage:

• Bodily injury and property damage resulting from your childcare operation.
• Allegations of sexual abuse involving children in your care.
• Accidents, without regard to fault or liability, to children in your care. This is offered for both on and off your premises.
• Medical payments coverage.
• Personal injury including libel, slander, wrongful eviction, wrongful entry, and alienation and affection of any daycare child.

It's important to thoroughly check out the coverage available to you, to make sure that your home daycare business is properly insured.

According to the Government of Canada's website on How to Start a Day Care Centre Business located at canadabusiness.ca, you should obtain the expertise of an insurance agent regarding insurance coverage for your business. If you own, rather than lease your place of business, you will need insurance coverage for your property. Also, regardless of property ownership, you will require insurance protection for furniture, fixtures and equipment. Some of the other areas you should be concerned about are liability coverage against mishaps, damages or lawsuits resulting from business operations and business interruption insurance. The Child Day Care Centre Regulations state that the details of insurance coverage of the home, with respect to the possessions of the residents, must be included in the admission agreement."

You will also find comprehensive information on starting a daycare business, licenses and regulations, managing your operation, associations and contacts, education and training, resources, recommended books, video collection, and recommended websites to ensure your home daycare business is in full compliance with the laws of Canada.

If you provide daycare for friends and neighbors in your community on a regular basis, and consider it a home-based business, it would be in your best interest to contact your insurance broker to determine what coverage is needed based on the type of daycare you are providing. This will not only ensure that you are covered, but that the children are as well. It is in the best interest of all parties concerned that daycare provider insurance is purchased in case of any problem that may arise.


Liane Wood is a chartered insurance professional and registered insurance broker specializing in personal and small business insurance. Visit her website at:

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