Lisa has run a daycare in San Antonio for more than ten years. She’s seen it all. Kids with glue in their hair. Parents who forget pick-up times. Sprinkler day mayhem. But nothing hit as hard as the letter she got this spring.
It came from a former staff member’s attorney.
The letter claimed Lisa wrongfully fired the teacher. Lisa thought it was a misunderstanding about hours and scheduling rather than disciplinary action. She had no idea it would turn into a legal battle that would last months, drain her savings, and leave her questioning everything about how she ran her child care facility.
Lisa didn’t have Employment Practices Liability Insurance as part of her daycare facility insurance coverage. But after this, she wished she had.
The Hidden Risk Inside Your Daycare
Running a daycare in Texas is a lot more than just coloring sheets and snack breaks. It’s an emotional, fast-moving workplace where child care providers deal with crying babies, worried parents, and surprise inspections. In that kind of pressure, even small conflicts can grow into retaliation complaints.
You might think, “We’re like a family.” That’s what Lisa thought too. But things change fast when employees decide to file complaints.
One scheduling disagreement turned into a claim of unfair treatment. The teacher felt she was being targeted. Lisa believed she had followed all the rules. But feelings turned into legal filings for unlawful practices, and then Lisa had to find a lawyer.
She wasn’t just facing a complaint. She was facing a lawsuit.
What Employment Practices Liability Insurance Actually Covers
Lisa had never heard of Employment Practices Liability Insurance before all this happened. She thought the general liability insurance covered her for liability in general. But it didn’t cover the complaint process she found herself mired in.
General liability helps when a parent slips on wet floors. EPLI helps when someone on your team says you treated them unfairly.
EPLI provides help and pays for legal costs when a staff member accuses you of:
- Wrongful termination
- Harassment
- Unlawful Discrimination
- Retaliation
- And other workplace issues
It also helps cover the cost of settlements, court fees, and attorney time. Even if the claim ends up being false. That’s what shocked Lisa the most. She didn’t think she did anything wrong, but she still had to pay to defend herself. And the defense costs were not cheap.
That bill didn’t come from some big mistake. It came from one employee disagreement.
You’re Not Just Protecting the Business
When Lisa first met with her lawyer, she thought the daycare was being sued. She didn’t realize she was personally named in the complaint as well. Her name was on the paperwork. Not just the business.
That’s when things got even scarier.
As the owner and director, Lisa felt exposed. If the court found her personally responsible, her own savings and assets were on the line.
She learned that EPLI could help protect her as a person. Not just the center. Managers, directors, and even board members can be pulled into employment claims where they have legal obligations. Proper protection of those involved requires planning.
Legal Costs Stack Up Fast
The first bill from Lisa’s attorney was more than she made in a week. And that was just the beginning of the complaint investigation.
Before long, she was paying for strategy meetings, document prep, and depositions. The lawyer charged by the hour. The hours added up quickly.
Lisa kept thinking, “Even if I win this, I still lose.”
That’s what makes EPLI so helpful to daycare owners like Lisa. It steps in and covers those legal costs so the business isn’t wiped out just defending itself. You don’t have to scramble to cover thousands of dollars from payroll. You don’t have to hope the court throws it out quickly.
You just have to keep running your daycare while the coverage handles the fight.
EPLI Doesn’t Replace Good Practices—It Supports Them
Lisa isn’t a careless boss. She has a handbook. She does training. She follows the rules.
But even with all that, the claim still happened.
No policy can stop someone from filing a lawsuit. But good operational policies give you support when they are followed. EPLI isn’t a shortcut. It doesn’t mean you stop documenting or drop your standards.
It’s the backup plan when your best efforts fall short. Lisa has started keeping better records. She is doing more training. And yes, she has added EPLI coverage too. Because she has learned that even the best-run daycare can find itself in court over something unexpected.
Don’t Learn the Hard Way Like Lisa Did
Lisa is working through her legal mess. The claim will likely be dropped. But the stress, the costs, and the fear has stuck with her.
She decided to find a new insurance agent who would work as an advisor for her business. She found an independent insurance agent who truly understands how Texas daycares operate. Someone who knows that it’s not just about playground injuries. It’s about real workplace risks. And how to plan for them.
Lisa reached out to Insurance For Texans so that she could work with an experienced independent insurance agent who specializes in Texas daycares. Lisa didn’t know about EPLI before, but the True Texas Education Insurance program asks those questions to properly protect your business from claims. Now, she tells every business owner she knows to look into it.
Smart Protection Starts Before the Trouble
Running a daycare is a hands-on job. You’ve got licensing, parents, children, unannounced visits, and staff to manage. It’s easy to let insurance become something you just renew each year without much thought.
But not having EPLI almost cost Lisa everything she built.
If you want to protect yourself and your team, don’t wait until a complaint turns into a lawsuit. Learn how True Texas Education Insurance understands the risks Texas daycare owners face, and gets you the coverage you need before the letter shows up in the mail.
Click the button below to talk with an expert who knows how to protect Texas daycare owners with the right coverage.