Babysitting Business Insurance
Getting insurance for your babysitting business is essential.
Babysitting businesses need to be protected against things like claims of negligence, breach of contract, and false advertising.
For example, an employee made false claims about their qualifications as a babysitter, or one of your client’s children gets injured while in your care.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Babysitting Business
General liability insurance is — generally speaking — one of the most important insurance policies for babysitting businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your babysitting business might also benefit from other types of policies. Additional coverage policies that can often be important for trucking companies include:
- Commercial umbrella insurance
- Commercial auto insurance
- Home-based business insurance
- Workers’ compensation insurance
There are typically two general options when it comes to places from which to buy insurance for your babysitting business:
- Traditional brick-and-mortar insurers: This category describes those providers with a physical store that likely also employs an insurance agent that offers quotes and help to customers. These providers are renowned for their reliability, though this does come at a price.
- Online insurers: This category describes those providers with a solely online presence. By taking advantage of the power of AI and their inherently low overheads, these insurers are able to offer high-quality and reliable insurance that is also very affordable.
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Cost of General Liability Insurance
On average, babysitters in America spend between $300 - $800 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a babysitting business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Babysitting Business
Example 1: When a child contracts a devastating disease and ultimately dies, their parent blames you for the child’s illness and sues. Even if you’re not at fault, general liability insurance would cover your legal fees and any damages awarded in a settlement.
Example 2: While watching a child at your house, she slips and falls down the stairs. General liability insurance would cover the child’s medical bills for any resulting injuries.
Example 3: State law may require you to carry general liability insurance, depending on your state and babysitting situation.
Other Types of Coverage Babysitting Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, this coverage provides added protection against large claims involving a child’s injury or illness that could exceed the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Commercial Auto Insurance
If you use a personal vehicle to drive children around while babysitting them, you may need commercial auto insurance because many personal auto policies don’t cover work-related accidents. A commercial auto policy protects you, your car and others on the road in the event of a work-related accident by covering vehicle repair costs as well as medical treatment for anyone injured.
Home-Based Business Insurance
If you watch children at your home, check with your homeowners' insurance provider to ensure your policy protects you against liability from work-related accidents. If not, consider adding home-based business coverage to your business owner policy (BOP) or your existing home insurance policy.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees, but you may also use it to protect yourself as a business owner from work-related injuries. Because some health insurance policies don’t cover injuries sustained at work, consider purchasing workers’ compensation insurance to protect yourself if you become injured or fall ill while babysitting.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your babysitting business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Babysitting Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It is vital to secure the right business insurance for your babysitting business before its operations commence due to the inherent risks associated with it.
Do keep in mind that your business may be required by law to carry policies such as workers’ compensation (if you employ other babysitters) prior to starting.
Not necessarily. Certain exceptions may be written directly into your babysitting business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.