Miranda’s daycare in Lubbock has always been full of energy. On a bright spring morning, the kids are running and laughing on the playground while teachers keep a careful eye on the activity. But that's exactly when things happen. One child tripped while chasing a ball and landed hard on the ground.
The scrape on his knee was minor, but the parent was furious. The response seemed excessive and Miranda didn't think much of it. But by the next week, Miranda had received a letter from an attorney claiming her daycare was responsible for the injury. She sighed..
That was when she understood something many daycare owners overlook. General liability insurance is not just a box to check for Texas state licensing requirements. It is the shield that stands between an unexpected accident and a potential financial crisis that could shut your doors.
Yes, general liability coverage is required to operate a daycare center in Texas. But here are three things you need to understand about it.
If you want a quick and dirty summary, there are FAQs at the bottom of the page. Otherwise, read on.
General liability insurance is a foundational protection for daycares across Texas. It provides legal defense against third-party claims of property damage and bodily injury. Consider the scenario that played out for Miranda. A simple playground accident can lead to medical costs, angry parents, and the threat of lawsuits for personal injury claims.
Even when a claim is groundless, legal costs for defense can tally tens of thousands of dollars. Without liability insurance, those legal expenses fall directly on the daycare owner. With liability insurance, the insurance company steps in to provide the lawyers, pay the bills, and manage the defense. That difference can decide whether your center weathers the storm or closes its doors.
Property insurance for daycares is straightforward. It protects the building, contents, and equipment. General liability insurance works differently. It protects your business against claims made by others for bodily injury or damage to property that happen in connection with your daycare center.
Think about the range of risks that occur every day in a child care center.
Each of these incidents could create a liability for your daycare business in the regular flow of a day. General liability coverage exists to handle those claims, providing both defense and payment for damages up to the policy limits.
For daycare centers, where children, parents, and visitors are constantly coming and going, this is not optional coverage. There is a reason this insurance coverage is the foundation of your protection. It is more than just a landlord or legal requirement.
General liability insurance coverage is designed to shield your daycare from third-party claims in three specific areas. These are defined by the following list.
These claims may arise from accidents on your premises, interactions with parents or visitors, or even from community events your daycare participates in. The scope is broad because the risks are broad. That's where the word general comes from in the name.
As a daycare business owner, it is important to know this coverage also extends to staff when they are acting within the scope of their daycare duties. For example, if your staff takes kids on a field trip to the zoo and a child is injured, general liability can respond. The protection is not limited to the walls of your childcare center.
While general liability is essential, it does not cover every liability risk your daycare faces. This is where many owners get caught off guard because they do not understand exclusions, limitations, and coverage limits.
Because of significant gaps, you should include the following insurance coverage for liability.
General liability is the starting point with insurance requirements from Texas, but it must be paired with other policies to build true protection for your daycare facility. Miranda realized that while her general liability policy was critical, she also needed additional policies and coverage options to guard against the unique risks of working with children.
Working with an experienced, Texas daycare insurance specialist is the key to getting this right. Many generic business insurance providers and policies give basic general liability, but they often miss important daycare providers specific exposures.
An independent agent who specializes in and understands Texas daycare risks can:
Miranda’s experience was a wake-up call. She thought she was protected because the state required a general liability policy. What she learned is that state minimums do not guarantee you are truly covered. By working with a specialist, she was able to secure a policy that went beyond compliance to provide real security.
Daycare program owners across Texas face the same risks every day. A child falls. A parent files a claim. A lawyer writes a letter. You cannot predict when it will happen, but you can be prepared for when it does.
General liability insurance is not just a state requirement. It is the foundation of protecting your daycare center’s financial stability, reputation, and future. Without it done properly, one accident could undo years of hard work. With it, you have the defense and support to keep moving forward.
That is why True Texas Education Insurance was created. Built specifically for daycares, childcare centers, and preschools, it helps owners protect what matters most with coverage that works in real life, not just on paper. And it is only available through Insurance For Texans.
👉 Click the button below to talk with a Texas-based daycare insurance expert and make sure your general liability coverage truly protects your center, your staff, and your kids.