Mary has been running her daycare in Lubbock for years. She knows the names of every child who walks in her door, the favorite snacks of the pickiest eaters, and which parents need an extra smile at drop-off. Her classrooms are full of laughter, her staff is steady, and her enrollment stays strong.
She thought she had everything covered. Literally.
A friend who runs a daycare center across town called in desperation and frustration. Her friend had to shut down her daycare after they Mary has been running her daycare in Lubbock for years. She knows the names of every child who walks in her door, the favorite snacks of the pickiest eaters, and which parents need an extra smile at drop-off. Her classrooms are full of laughter, her staff is steady, and her enrollment stays strong.
She thought she had everything covered. Literally. It was only after a friend in a nearby town had to shut down her daycare that Mary started thinking about her own insurance policy.
Her friend had filed a property claim after a major storm and was shocked when the insurance company refused to pay most of the costs. Mary thought that could never happen to her. But she decided to pull out her own policies and take a closer look with a new set of eyes.
She consulted with a daycare insurance specialist to see if she had similar coverage gaps. That is when she learned three things she never expected.
Three Things You Need To Know Right Now
These are things that most insurance companies will never tell you unless you know exactly what to ask. And if you own a daycare in Texas, they could be the difference between bouncing back after a crisis or closing your doors for good.
- Abuse and Molestation Coverage Isn't Always Included
- Your Roof Likely Isn't Covered The Way You Think After A Hail Storm
- Past Incidents Can Follow You And Hurt Your Ability To Get Coverage
If you skip to the end, you can also get our FAQs. Now back to Mary's Story.
1. Abuse and Molestation Coverage Isn’t Always Included
Mary’s daycare has a spotless record. She hires carefully, trains her staff well, and enforces strict safety measures. The idea that she might face an abuse or molestation claim seemed unthinkable. But you just never know today.
As she went through her policy review about her general liability insurance, there was something glaring at her. There was no mention of abuse and molestation coverage. She was shocked to learn it was not automatically included. In fact, it was a separate endorsement that had to be added intentionally.
Without this coverage, a single child abuse allegation could become a financial disaster. Even if the claim is false, the legal costs alone could wipe out years of hard work. And in a business that works with children, the risk is far too high to ignore.
Many daycare owners assume that because they have general liability insurance, this type of liability claim would be covered. That assumption can be a costly mistake.
Mary realized she was one incident away from losing everything. Adding this coverage was not optional for her anymore.
2. Your Roof Might Not Be Covered the Way You Think After a Hail Storm
Living in Texas means dealing with hail. Mary’s daycare has a roof that has seen a few storms over the years. She never thought much about it. After all, she had property insurance. If hail damaged the roof, the policy would pay to replace it. Right?
Not necessarily.
Mary learned that her policy had what is called a “roof payment schedule.” That meant the insurance company would look at the age of her roof and then reduce the payout based on a depreciation schedule that she had no control over. With a roof more than ten years old, she would only get a fraction of the money needed to replace it.
This was news to her. She had assumed the coverage would be replacement cost. But in Texas, where hail is a constant risk, many insurers quietly switch older roofs to actual cash value. They save money on claims, but the business owner is left paying thousands out of pocket.
If you own a daycare, you cannot afford to guess about what happens when hail creates property damage. What will you do if the insurance claims process does not cover the repairs?
Mary decided she needed to investigate a myriad of options for her child care center property, including her playground equipment. The hail that comes across The High Plains can create challenges for property insurance.
3. Past Incidents Can Follow You and Hurt Your Ability to Get Coverage
During Mary's conversation with her friend who had the bad claim, she got some additional insight that she wanted to learn more about. She decided to ask during her insurance policy review.
Mary found that her friend had also had an insurance claim a few years ago. There had been a nasty slip-and fall incident and the parents sued for gross negligence. A sympathetic jury awarded maximum payment for legal liability for the child injury.
When her friend repaired the property claim that didn't pay out enough, she began looking for new daycare insurance. As she talked with insurance providers, she was declined over and over.
She had no clue what was happening.
The problem was that the incident was still on her loss history report. This report is used by underwriters to assess her risk for business insurance. Even though the claim had been resolved and her safety record was otherwise spotless, it was contributing to the declinations.
Most business owners do not realize that insurance companies will not issue a policy without seeing your loss runs. This means any incident, even a small one, can affect your insurance for years. It can impact not only your insurance premiums, but also whether a carrier is willing to offer you coverage at all.
The Real Lesson Mary Learned
Mary started this process thinking she was simply double-checking her daycare insurance for gaps. She assumed she would find everything in order and go back to focusing on her classrooms. Instead, she uncovered gaps, limitations, and risk factors that could have destroyed her business.
The most frustrating part? None of these things had been hidden from her. They were all in the paperwork. But nobody had explained them in a way she could understand.
That's why you need an experienced insurance agent who specializes in Texas daycare operations. Insurance companies will process your application, collect your premium, and send you a policy. But they are not in the business of making sure you know every detail.
That is the job of the person representing you to the underwriters. And if that person does not know Texas daycare risks inside and out, you could end up with dangerous gaps in your protection.
You Deserve More Than a Policy Number
Daycare owners like Mary have too much on their plates to play guessing games with their property and liability insurance. You need an advocate who understands child care licensing requirements, liability risks, and the realities of running a daycare in Texas.
You need someone who will take the time to explain what your policy covers, what it does not, and what can be done to close the gaps before you have to file a claim.
That is exactly why True Texas Education Insurance was created. It exists to give daycare owners in Texas a coverage strategy that is built for their business, not a generic policy copied and pasted from another industry.
True Texas Education Insurance is only available at Insurance For Texans. And it is the difference between hoping you are covered and knowing you are covered.
If you are not sure what is hiding in your current policy, do what Mary did. Click the button below and talk with a Texas-based daycare insurance expert today to protect your business, your staff, and your future.