Daycare business owners face many challenges throughout any given day. When you own more than one location, the number of challenges goes up exponentially.
Mary owns three daycare center locations in Fort Worth and she knows a thing or two about these challenges. But she’s been running her centers for years without major issues, and she’s careful with her business decisions.
This year, she switched to a new company for her daycare insurance coverage for the first time in over a decade. Her old agent retired, and the new quotes looked better on paper and it was going to lower her insurance costs. After signing the policy and getting her coverage started, she thought the hard part was done.
Then she got a phone call.
The voice on the other end said they were calling to schedule an insurance inspection.
Mary felt a little panicked. She had no idea what that meant. Was this normal? Was something wrong? Should she have just left it alone?
If you’re a daycare owner like Mary and you’ve got a new insurance policy, here are five things you need to know about what comes next.
If you need more and are pressed for time, there is a list of FAQs at the bottom. Otherwise, let's get back to the story.
Most commercial insurance policies come with an inspection after issuance. While it is much more rare for a renewal policy with the same daycare insurance company, it can still happen then as well.
It’s not a punishment for your daycare center. And it’s certainly not a surprise attack.
The insurance provider checks that what they cover matches what you included on the application you signed to accept the policy.
Mary didn’t realize this was standard practice across insurance companies. She thought inspections were only for when something went wrong with one of her child care centers.
But the truth is, insurance carriers send inspectors out to make sure that your daycare is meeting minimum standards of safety and maintenance. And if you only have liability insurance, it is likely that it will be a phone call and request for pictures.
So if you’re getting your first inspection call in years, take a deep breath. You didn’t do anything wrong. But you do need to know what to expect.
Mary’s first fear was that someone was going to show up with a white glove and start judging her staff or classroom decor.
That’s not what this is about.
Insurance inspectors are mostly focused on the building and its physical risks. They look for minimum standards for the following items:
If you’ve got an old roof, outdated wiring, or expired safety equipment, they’ll flag it. It's a matter of child safety after all.
In Mary’s case, they noticed a missing exit sign and some outdated smoke detectors in the break room. Nothing huge. But it still had to be fixed and made her child care operations safer.
Mary thought her policy was locked in. But after the inspection, she got a notice that her roof coverage could be adjusted unless she could verify when it was replaced through a paid invoice.
That surprised her.
But that’s how it works. Inspections are about property risks and can lead to:
These inspections have real consequences if your answers to application questions are vastly different from what the inspector finds.
That’s why having an experienced agent matters. If Mary had been working with someone who knew daycare risks inside and out, they might have warned her ahead of time what could trigger a change.
Mary answered questions honestly, but casually. Later she learned that something she said about kids occasionally eating lunch on the playground got marked as an “adverse risk strategy.”
That didn’t sound like a big deal. But it affected how the underwriter reviewed her general liability insurance.
Inspectors take notes. If you describe your business the wrong way, it can create confusion or concern with the underwriter reviewing your file.
That’s why your agent should work to understand you Texas daycare operations up front. Those items can be addressed during the rating process rather than the inspection process.
The biggest lesson Mary learned?
This whole thing would’ve been less stressful if someone had just told her what was coming.
The inspection wasn’t scary. But it was important. And it could have gone badly if she hadn’t taken the follow-up actions quickly.
An experienced daycare insurance agent would’ve helped her:
This isn’t something your average agent will do. And it’s not something you want to figure out on your own.
Mary didn’t expect an inspection. But she handled it. She fixed what needed fixing. She kept her property and liability coverage in place. And she learned that there’s more to daycare insurance than insurance costs and signing the paperwork.
If you're like Mary, running a busy daycare in Texas, there’s already enough on your plate. You don’t need surprise calls and risk of cancellation because your agent didn’t explain the fine print.
That’s exactly why True Texas Education Insurance exists.
It’s a program built for Texas daycare owners who want real help, real answers, and real coverage. And it’s only available through Insurance For Texans.
Click the button to talk with a Texas-based insurance expert who knows exactly what inspectors look for and how to help you prepare.