Katy’s daycare waitlists tell the story on their own. Demand keeps growing, and so does the number of people opening in-home and center-based childcare operations to meet it. What doesn’t always keep pace is an understanding of what actually needs to be insured once children, staff, and parents are all moving through the same space every day.
1. Who is actually exposed to risk in a daycare?
Not just the children. Staff members, parents during drop-off and pickup, delivery drivers, and any vendor who steps inside all create their own liability touchpoints. A general liability policy written for a typical small business rarely accounts for the volume and variety of people moving through a childcare facility on any given day.
2. What does professional liability actually add?
This is the coverage that responds to claims tied to the quality of care and supervision provided, not just a physical accident. Sometimes referred to as abuse and molestation coverage in this industry, it fills a gap that general liability was never designed to cover.
3. Does Texas require specific coverage to get licensed?
Yes. Texas Health and Human Services sets coverage requirements before a childcare facility can be licensed. Getting this piece wrong doesn’t just leave a gap in protection, it can delay licensing altogether.
4. What about the physical space and equipment?
Property coverage for the facility, playground equipment, and classroom materials is a separate line item from liability, and one that’s easy to underinsure as a daycare adds more equipment over time.
5. What happens as the business grows?
A daycare that starts with a handful of kids in a home and grows into a licensed center with several employees needs its coverage reviewed at each stage, not just at the start.
Vargas Agency in Katy, TX works with childcare business owners through each of these stages. Reach out through Vargas Agency to walk through what your daycare specifically needs.
