Connecticut Home Daycare Insurance Requirements

Your homeowner's insurance policy may exclude business activities conducted on the premises. If a child is injured in your home daycare, confirm that your policy covers the claim; relying on a standard homeowner's policy can leave you exposed to uncovered costs.

What the OEC Requires

Connecticut doesn't technically mandate liability insurance for family child care home licensure. The OEC licensing application focuses on background checks, training, and physical plant standards. But operating without coverage is a risk most providers can't afford to take, and two situations make insurance practically mandatory:

If you rent. Under Public Act 23-142, your landlord cannot block you from running a licensed family child care home, but they can require you to carry childcare liability insurance and name them as an additional insured. Many landlords exercise this right.

If you accept Care 4 Kids subsidies. Care 4 Kids doesn't require liability insurance for enrollment; insurance remains a separate business-risk decision, so review the current provider agreement and your coverage needs.

Types of Coverage You Need

Childcare general liability insurance. This is the core policy. It covers bodily injury to children in your care, property damage claims, and legal defense costs. Annual premiums typically run $500 to $2,000 depending on your licensed capacity, location, and claims history.

Professional liability (errors and omissions). Covers claims arising from your professional services — allegations that you failed to properly supervise, administered medication incorrectly, or made an enrollment decision that harmed a child. Some general liability policies bundle this; others sell it separately.

Abuse and molestation coverage. A specialized rider that covers allegations of abuse. Given the nature of child care work, this coverage is essential even though the underlying allegations may be unfounded. Many insurers include it in their childcare business policies.

Business property coverage. Covers your business equipment — cribs, play structures, educational materials — if damaged or destroyed. Your homeowner's policy won't cover business property.

Where to Get Coverage

Several insurers specialize in home-based child care:

• The Hartford offers childcare business owner's policies specifically designed for home daycare providers
• Markel and Philadelphia Indemnity write specialized child care liability policies
• Your state family child care association may offer group rates through a preferred carrier

When comparing quotes, check whether the policy covers:

• All children in your care, including drop-in and part-time enrollments
• Field trips and transportation (if you plan to transport children)
• Substitute providers working in your home
• Legal defense costs in addition to settlement limits (not subtracted from them)

What Insurance Costs

For a Small Family Child Care Home (up to 6 children, single provider), expect:

• General liability: $500 to $1,200 per year
• Professional liability (if separate): $200 to $400 per year
• Abuse and molestation rider: often included or $100 to $200 per year
• Total: $500 to $2,000 per year, depending on coverage limits and bundling

Higher licensed capacities (Group Child Care Home) increase premiums proportionally. Adding your landlord as an additional insured typically doesn't increase the premium.

The Connecticut Home Daycare License Process Guide includes an insurance comparison worksheet and the specific coverage checklist to bring to your broker, so you're asking the right questions before signing a policy.

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