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Ask The Expert: What should I know about insurance for daycares?

Updated: Oct 22, 2023

If your church has a daycare, you may have questions regarding your insurance coverage and how it applies to your daycare. For example, you might wonder if your daycare is covered by your current insurance policy. Or what kinds of activities are typically covered for your daycare? We will explore questions like these and others below.

Is my daycare covered by my church’s insurance policy?

The answer to this question is: it depends. It is important that when you secure coverage for your church it is disclosed that there is a daycare operating on your property. Most reputable insurance agencies that have experience working with churches should be asking if you have a daycare and the specifics surrounding its operations when you initially get your coverage. They will then typically incorporate this into your standard policy. However, it is possible that you may not have coverage for your daycare if it was never disclosed that you have one. For this reason, it is recommended to secure your coverage from an agency or carrier that regularly works with churches and knows what questions are appropriate to ask in order to offer your ministry appropriate protection options.

Additionally, keep in mind that even if your church itself does not operate the daycare but rather leases a church space to an unaffiliated daycare, your church should be named as an additional insured on their coverage.

If you are unsure if your daycare is included in your church’s insurance policy, contact your agent or carrier as soon as possible to help mitigate risk.

What kind of coverage does my church and daycare need? Every church and daycare are different, but a good rule of thumb is that your daycare may need several different coverages to help protect it from risks. These may include:

  • General liability insurance

  • Property insurance

  • Professional liability insurance

  • Abuse and molestation coverage

  • Workers’ compensation

  • Commercial auto insurance

  • Accident insurance

  • Umbrella insurance

Your church may already have some of these coverages, but it’s important to find out which ones also apply to your daycare and which ones you may be missing. Your ministry could be saving money on its insurance. Find out how.

What kind of activities are typically covered? Typically, daycare insurance covers:

  • Activities that are sponsored and supervised by the daycare

  • Daycare related field trips

  • Traveling in vehicles affiliated with the daycare

If you have additional questions regarding coverage for your daycare, UMIP can help. Call 484-654-3380 to speak to a dedicated representative today!


This content has been prepared by United Methodist Insurance Company (UMI) for informational purposes only. No article or document may accurately contemplate all possible scenarios or church resources. As such, this information is meant to foster discussion by the individual church and its members to develop a plan tailored to its own circumstances. UMI is providing this information with no warranties or guarantees of any kind and it should not be viewed as legal, financial, or other professional advice. All liability is expressly disclaimed. Any claim examples described herein are general in nature, may or may not be based on actual claims, and are for informational purposes only. Any coverage available for a claim is determined from the facts and circumstances of the claim as well as the terms and conditions of any applicable policy, including any exclusions or deductibles. In the event of a conflict with the content herein, the terms and conditions of any issued policy will control. Individual coverage may vary and may not be available in all states.


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