One of the most important daycare insurance coverages you can have for your business is for physical abuse and sexual misconduct. You see in the news all the time, another case involving child abuse or molestation. While you may think you’re in the clear, you take on a huge financial risk if you do not carry insurance for instances like these.
If an abuse or molestation claim is made against you, even without any merit whatsoever, it can still end up costing you thousands of dollars. Damage will be done including legal fees and/or and type of settlement that may come out of it. Here are a few things on how abuse and molestation work and how it will keep you protected
1.Who is insured?
Did you know that most molestation claims are made most often due to poor supervision of daycare staff or volunteers? This is why it is important to know who your policy will cover in case of a claim. In a best case scenario, you will want your policy to cover all of your employees, even if they are unpaid volunteers.
2.What are the costs?
Abuse and molestation insurance will help with defense costs, settlements and other damages that may result from the claim such as counseling or medical bills. However, the majority of costs will come from your defense (legal fees, investigations etc.) rather than an actual settlement (if there is a settlement at all).
3.Intentional v. Unintentional
In regards to an abuse claim, if the allegations are proved to be intentional, rather than accidental (or if the allegations are dismissed altogether), the perpetrator will not be covered by the insurance policy. This is why you will want to make sure you get a policy that covers other insureds, to help cover any other costs that may affect you, your other employees and your business as a whole.
Always have physical abuse and sexual misconduct insurance for your daycare- seriously! We live in a litigious world and this simply is not an area of coverage you can afford to skip. If you have an in home daycare, don’t rely on a homeowner’s policy add-on either. When it comes to the safety and reputation of your employees, children and business, be prepared for every situation.