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Top 9 Best Daycare Insurance Companies: 2023 Providers List


Home-based or not, insurance is an important part of any daycare business. Most jurisdictions require it to issue a license, and you might need one even if you run a small child care service that doesn’t need a license to begin with.

Whether you need general liability insurance alone or a bundle policy, choosing the right provider is crucial.

The table below shows a quick list of the best daycare insurance companies in 2022*:

Insurance ProviderDay Care Coverage PlansCoverage LimitPremium (Per Month)BBB Rating
CoverWallet4Up to $2M per occurrence or $4M in aggregate $39+A+
The Hartford 1Up to $1M per occurrence or $3M in aggregate$25+A+
Next Insurance3Up to $1M per occurrence or $3M in aggregate $33+A
Business Insurance USAFlexibleUp to $5M per occurrence or $5M in aggregate $35+A+
Markel Insurance2Up to $1M per occurrence or $3M in aggregate$37+A-
Philadelphia Insurance Companies1Up to $1M per occurrence or $3M in aggregate$160+A+
Selective Insurance1Up to $1M per occurrence or $2M in aggregate$60+A
biBERK FlexibleUp to $1M per occurrence or $2M in aggregate$27+A+
Church Mutual InsuranceFlexibleFlexible On requestA+

*The insurance companies in the table were selected based on coverage options, coverage amounts, premium affordability, and Better Business Bureau rating. The companies are listed in no particular order.

1. CoverWallet

  • Best for: Home daycares & startups 
  • Coverage: Nationwide

NY-based CoverWallet is not an insurance company in the term’s true meaning, but it’s one of the best options for startups and small centers. 

An aggregator at core, the website searches and provides quotes tailored to your needs. You can select the desired provider, buy a policy, and manage your insurance directly online, from your CoverWallet account. 

Currently, CoverWallet provides four plans for child day care services. Premiums start at $39 per month for a general liability coverage plan. This plan could suit those looking for an unlicensed daycare insurance.

Larger businesses with employees or those operating from various locations can opt for a custom plan that includes worker’s compensation and other add-ons. 

Generally, CoverWallet’s policies provide a coverage limit of $1 million per occurrence and $2 million in aggregate. You can double the limits if you want, but if you need higher coverage, you must ask for a custom quote. 

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Website: CoverWallet

2. The Hartford 

  • Best for: Small businesses
  • Coverage: Nationwide

The Hartford provides the best in home daycare insurance for small businesses, but the company is large enough to deal with centers of all sizes. This makes it an excellent choice for small daycare services that plan to grow in future. 

What makes The Hartford stand out is the affordable premium. Monthly costs start at only $25, making it one of the cheapest daycare insurances on the market. 

Obviously, the actual costs vary based on insurance type, whether it’s a single policy or a bundle, business size, and coverage limit. 

Regarding coverage limits, you can opt for policies that cover up to $1 million per occurrence or $3 million in aggregate. The lower the limit, the cheaper your policy will be. If you need higher limits, you can opt for umbrella insurance. 

Website: The Hartford

3. Next Insurance

  • Best for: Those who prefer online insurances
  • Coverage: Nationwide

One of the most popular providers of daycare insurance in California – and the rest of the United States, including Alaska – Next Insurance is a go-to choice for those who don’t want to meet or talk to agents. 

The insurance company operates exclusively online. Agents are still available for phone, email, or chat consultations. Generally, finding the right policy through the DIY system is easy, though.

More affordable than CoverWallet, Next Insurance provides all types of insurance a daycare service might need. Owners can buy the policies separately or as a bundle, the latter option providing more affordable prices. 

Premiums generally start at $33 per month for a basic, general and professional liability insurance. However, according to Next, their daycare customers pay around $54 per month ($646 per year) on average. 

Coverage limits vary from $500,000 per occurrence to $3 million in aggregate for both general and professional liability insurances.

Like CoverWallet, Next Insurance proposes various packages that suit the insurance needs of small and big daycare centers alike.

Website: Next Insurance

4. Business Insurance USA

  • Best for: Commercial daycare centers
  • Coverage: AZ, CA, CO, CT, IL, IN, MD, MI, MO, PA, FL, GA, NJ, NM, NY, NC, OH, OR, SC, TX, VA, WA

Business Insurance USA is one of the best daycare insurance companies for larger, commercial daycare centers and preschools who need flexible insurance options. 

Operating in 22 states, including California, this company offers tailored solutions with coverage limits that go up to $5 million (per occurrence or in aggregate, depending on your needs). However, if you need more than that, an excess liability insurance can add up to $2 million to the original coverage limit.

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From general liability insurance to worker’s compensation, you can buy separate policies or opt for bundles. 

Premiums vary widely, but they aren’t much more expensive than other companies would offer. In fact, basic options start at only $37 per month. 

Website: Business Insurance USA

5. Markel Insurance

  • Best for: Those who want to work with a large insurance provider
  • Coverage: Nationwide

With total assets in excess of $39 billion and a global reach, Markel Insurance is the best choice for those who want to work with a large company.

Its headquarters are located in Virginia, but the company’s agencies are scattered across the nation. With loads of experience insuring small businesses and large corporates alike, Markel Insurance offers separate policies and bundles to home daycares and commercial child care centers. 

Both policy types include general liability coverage limits up to $1 million per occurrence and $3 million in aggregate. 

The main difference is the abuse and molestation liability policy that offers limits up to $3 million in aggregate to commercial centers, but only up to $300,000 in aggregate ($100,000 per occurrence) to home daycares. 

That said, the company offers all 3 types of home daycare insurance, including general liability, professional liability, and homeowner policy; this makes it a great choice for at-home services. 

Website: Markel Insurance

6. Philadelphia Insurance Companies

  • Best for: Child care centers & preschools 
  • Coverage: Nationwide

Headquartered in Pennsylvania, Philadelphia Insurance Companies (PHLY) is one of the largest insurance companies in the USA. Like Merkel, it has a global reach and is part of the Tokio Marine Group – Japan’s oldest property and casualty insurer. 

The main difference between PHLY and Markel is the former’s focus on larger daycare centers and preschools. 

While the insurer works with small businesses too, it gives more benefits (including the possibilities to pay the premium in installments) to accounts that generate at least $2,000 in premium. 

Policy limits and coverage aren’t that different from Markel; PHLY covers up to $3 million in aggregate for general liability and professional liability policies. 

What makes a difference is the Crisis Management Enhancement Endorsement that allows business owners to claim up to $25,000 for expenses incurred because of an incident giving rise to a “crisis.”

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Small daycare owners who’d like to get better rates on a policy from PHLY can do so through Assure Day Care Insurance. Assure Child Care is an organization helping child care service providers to start and manage their business.

Website: Philadelphia Insurance Companies

7. Selective Insurance

  • Best for: Franchised & after-school centers
  • Coverage: Nationwide

Selective Insurance is one of the best insurance companies for daycares designed for school-aged kids or franchised centers. 

It has nationwide coverage, providing insurances directly or through various partners, including CoverWallet. However, you can still meet with an agent in-branch if you live in one of the following states: NJ, VA, CT, IN, PA, MD, NC, AZ, TX. 

Like most insurance providers, Selective Insurance allows you to buy policies separately or as a bundle. Options vary from general liability to safety management services that allow you to reduce industry-specific risks. 

Coverage limits go up to $1 million per occurrence or $2 million in aggregate. You can raise the limits with an excess liability policy. However, with premium prices starting at $60 per month, this is one of the most expensive options.  

Website: Selective Insurance

8. biBERK

  • Best for: New day care services
  • Coverage: Nationwide

Part of the Berkshire Hathaway Company, biBERK is an excellent provider for your home daycare insurance needs. 

The insurer doesn’t provide a specific policy for daycare services and centers, but its small business options cover everything a new daycare needs. Premiums start at only $27 per month, and you can get a coverage limit up to $2 million in aggregate – similar to what Selective Insurance offers. 

Addressing the new business owner generation, biBERK is also one of the few insurance companies that allow you to buy the policy online. Those who need assistance or don’t know what to choose, can schedule a call with an agent. 

biBERK has a national presence, but some policies are only offered in selected states. A state coverage map lets you check what options are available in your area. 

Website: biBERK

9. Church Mutual Insurance

  • Best for: Non-profit child care centers 
  • Coverage: Nationwide

Last but not least, Church Mutual Insurance is the best insurance company for non-profit daycare centers. 

The Wisconsin-based company is a leading insurer of religious organizations and non-profit human services. It provides comprehensive insurance policies to schools, preschools, colleges, and also daycare centers for children of needy working parents. 

Church Mutual Insurance offers a variety of tailored solutions. However, since policies and premiums are calculated differently for each individual contract, it is necessary to get in touch and ask for a quote. 

Website: Church Mutual Insurance