Running a daycare in Texas is more than just a business—it’s a commitment to caring for the youngest members of our community. But with great responsibility comes risk. Whether you’re just opening your first daycare or have been in the childcare industry for years, having the right insurance coverage can help safeguard your business, staff, and the families you serve.
At Steve White Insurance, we understand the unique challenges Texas daycare owners face. In this guide, we’ll explore key insurance considerations, answer your top questions, and help you feel more informed about your daycare insurance options in the Lone Star State.
What Is Daycare Insurance, and Why Is It Important in Texas?
Daycare insurance refers to a bundle of insurance coverages designed to help protect childcare businesses from risks such as accidents, property damage, and lawsuits. In Texas, both in-home daycares and childcare centers face strict regulations and high expectations from parents and licensing authorities. Having appropriate insurance coverage can support your business by addressing potential exposures such as:
- Injuries to children on your premises
- Employee accidents
- Property damage due to fire or weather
- Claims of negligence or misconduct
While Texas does not universally mandate all types of daycare insurance, certain coverages may be required to obtain or renew your license, and others may be necessary to meet lease agreements or parent expectations.
What Types of Insurance Coverage Might a Texas Daycare Need?
While specific needs can vary based on your facility size, staff, and services, common types of coverage that Texas daycare owners may consider include:
- General Liability Insurance: This may help with claims involving third-party bodily injury or property damage—like a child getting hurt on the playground.
- Professional Liability Insurance: Sometimes referred to as “errors and omissions” coverage, this may address claims that stem from perceived negligence in supervision or care.
- Commercial Property Insurance: If you own or lease a facility, this could help cover damage to your building, toys, furniture, and other assets.
- Abuse and Molestation Coverage: While a sensitive topic, this type of insurance is something many daycare insurers recommend in case of claims involving employee misconduct.
- Workers’ Compensation Insurance: Not required by Texas law, but often considered a smart choice for daycare centers with employees.
- Commercial Auto Insurance: If your daycare transports children, this type of policy might be essential.
Some insurers offer Daycare Business Owner’s Policies (BOPs), which may bundle several types of coverage for cost-efficiency.
How Does In-Home Daycare Insurance Differ From Commercial Centers?
Texas in-home daycares—often licensed as Registered or Licensed Child-Care Homes—may require different insurance than commercial childcare centers. Homeowners insurance generally does not extend to business-related risks, and some insurers may even deny claims if a loss is tied to unreported daycare operations.
In-home providers in Texas might explore a specialized policy that covers:
- Child injury liability
- Damage to home-based daycare equipment
- Legal defense costs
- Coverage for accidents in play areas or on playgrounds
It’s worth noting that the Texas Health and Human Services Commission may ask for proof of liability insurance for some license types.
Are There Minimum Insurance Requirements for Licensed Daycares in Texas?
Texas licensing rules don’t always mandate specific insurance policies, but some types of coverage are strongly encouraged—or required—based on your licensing classification. For example:
- Commercial landlords often require proof of general liability insurance.
- Some municipalities or counties in Texas may impose additional rules.
- Licensing renewals may prompt you to show evidence of current coverage.
It’s also common for parents to ask about insurance as part of their vetting process. Having coverage can give families greater peace of mind and help set your daycare apart.
How Much Does Daycare Insurance Cost in Texas?
The cost of daycare insurance in Texas varies depending on several factors:
- Your business size and number of children enrolled
- Location and facility type
- Whether you run an in-home daycare or a commercial center
- Your claims history
- Types of services you offer (e.g., transportation, field trips)
Premiums might range from a few hundred dollars per year for a small, home-based daycare to several thousand for a larger center with multiple employees. Bundled policies may offer better rates.
At Steve White Insurance, we work with daycare owners across Texas to provide tailored quotes that reflect your unique business profile.
What Should I Look for in a Texas Daycare Insurance Policy?
As you shop for daycare insurance in Texas, keep the following in mind:
- Does the policy address your licensing requirements?
- Are there exclusions related to abuse claims or off-premises injuries?
- Does it include defense costs and legal fees?
- Is coverage offered on a claims-made or occurrence basis?
- Are the coverage limits sufficient for your business size and risks?
It’s important to review policies with a licensed insurance agent who understands daycare operations in Texas. At Steve White Insurance, we’re here to walk you through the options so you can make confident decisions.
How Can Steve White Insurance Help My Texas Daycare?
We specialize in providing customized insurance solutions for small businesses, including daycare providers across Texas. When you work with Steve White Insurance, you benefit from:
- Local expertise in Texas regulations and risk environments
- Access to a range of carriers and policy types
- Responsive support from professionals who understand your business
- Coverage tailored to your size, scope, and goals
We’re more than just an insurance agency—we’re a partner invested in helping your daycare thrive.
Ready to Protect Your Texas Daycare?
Whether you’re renewing your license, expanding your facility, or just starting out, daycare insurance is an essential piece of your business foundation. At Steve White Insurance, we’re here to help Texas daycare owners find coverage that fits their needs—without the guesswork.
Let’s start a conversation today. Contact us for a personalized consultation and explore coverage options that help protect what matters most—your business and the children you care for.
