Everything You Need to Know about Home Daycare Insurance
- Loomis Insurance Agency
- Sep 12
- 6 min read
Updated: Nov 4
Do I Need Home Day Care Insurance or Can I Extend My Homeowners Insurance?
Updated September 2025
This article discusses home daycare insurance specifically for daycare providers in Missouri, Arkansas, Kansas, and Oklahoma.
Summary
Homeowners insurance doesn’t fully cover an at-home daycare business.
A custom insurance agency like Loomis Insurance Agency can select from many different policy types to ensure your business’ specific needs are covered.
The cost of coverage can vary greatly depending on your needs and the state your business is located.
State requirements to operate a home daycare business in Missouri, Arkansas, Oklahoma, and Kansas.
A home daycare business can be very lucrative and successful. Many people want the custom attention provided by a home operation. It can also be fun if you enjoy interacting with children and supporting families.
However, accidents happen in a home daycare business. Your company must be properly insured. Physical accidents, accidental ingestion of a substance, the spread of typical childhood diseases, or even accusations by parents are all reasons to have insurance that protects both your business and your assets.
You can get general liability attached to your current home policy. However, such policies may not cover the issues your business specifically faces. Instead, consider home daycare insurance: a specialized, niche policy that provides coverage for the specific problems daycare providers face. It’s always best to get a policy tailored to the needs of a home daycare and the regulations in your state.
Home Daycare Insurance Package Often Includes:
General liability coverage
Professional liability coverage
Property coverage
Does Homeowners Insurance Cover My Home Daycare?
Daycare business owners might be able to cover their home business by extending their homeowners insurance. Some insurance policies will cover a home business for an additional fee, so it’s worth investigating.
The problem with extending homeowners insurance is professional liability. If a child is hurt at your facility and you’re sued by the parents, you could be liable for the child’s medical costs and for the parent’s missed time from work.
Another issue is limits to the number of children you can care for. For instance, some insurance companies only cover a daycare with a maximum capacity of six children. If your facility exceeds that number and a child is hurt, they may deny coverage. Many other limitations could pose problems for home daycare operations.
What Does Home Daycare Insurance Cover?
Home daycare insurance is a niche insurance targeted just to the needs of a home daycare and fit for the requirements of your specific state. This policy provides liability coverage to your business, so you’re not personally responsible for damages if a child has an accident while in your care. Most standard homeowners insurance policies do not provide adequate coverage.
Policy options can include:
General liability coverage. This type of coverage can help cover you against medical and legal costs from a lawsuit if a child is injured while in your care.
Accident medical coverage. Covers the medical bills of any children injured in your care, regardless of whether you’re facing a lawsuit.
Professional liability coverage. This protects your company from harm caused by your staff. For example, if one of your staff members accidentally gives a child in your care peanuts when that child is allergic, this coverage would help cover the costs of a lawsuit if a parent sues you for damages. A homeowner’s policy and general liability do not cover problems related to staff.
Commercial auto liability coverage. Protection from lawsuits due to auto accidents while transporting children in your care.
Sexual misconduct coverage. Abuse and molestation liability coverage if you or a staff member are found guilty of abuse.
Property coverage. Covers damage to your property if it was damaged due to an accident by staff or a child.
Do You Need Home Daycare Insurance?
Many states require a home daycare business to carry some liability insurance to meet licensing requirements. Licensing requirements are often related to the number of children in your care.
Missouri Home Daycare Insurance
In Missouri, you may provide child care without a state license if you care for up to six children total, or no more than three children under the age of two. However, your program should be registered with the state for purposes such as eligibility for insurance and child care subsidies. Some insurance providers may also require proof of registration.
A Family Child Care Home is a licensed program operated in the provider’s residence (or a home-like setting) and may serve up to 10 children at one time. The Licensing Orientation is available in person at all Child Care Compliance (CCC) offices. Licensed programs are subject to stricter requirements, including standards for space, staffing, and record keeping. While licensing requires more oversight, operating as a licensed home daycare often results in lower insurance premiums.
For more information about registering as a home daycare facility in Missouri, see: Missouri Child Care
Arkansas Home Daycare Insurance
The regulations in Arkansas change based on the type of facility you plan to manage and the maximum number of children in your care:
Registered Child Care Family Homes – In Arkansas, child care family homes caring for fewer than six children are not required to be licensed according to the “Child Care Licensing Act 20-78-202” of 1969. However, voluntary Registered Child Care Family Homes are regulated by the Registered Child Care Family Homes, PUB-003.
Licensed Homes – Homes that care for 6 to 16 children must meet many state regulations and approval from the local health and fire departments. If the home provides care for 11 or more children, it may need city zoning approval. Arkansas also requires that the business be insured for at least $100,000 per incident, per child.
Out of School Time – These facilities are child care programs that only care for school-age children. Insurance levels are a minimum of $500,000 per occurrence.
For more information, see: Arkansas Child Care Licensing
Kansas Home Daycare Insurance
In Kansas, most child-care facilities must be licensed by the state. However, a home child-care provider may be exempt from licensing if they care for no more than two unrelated children and the combined care does not exceed 20 hours per week. Other exemptions apply for care by relatives, in the child’s own home, or informal exchange-based care.
If a home provider exceeds those limits (more than two unrelated children or more hours), they are required to be licensed as a Child Care Home (or licensed home daycare). Under the current laws, a licensed child care home (with one provider) may care for up to 12 children, depending on the ages of the children and how many providers are present.
Licensed providers must undergo background and criminal history checks. Other regulatory requirements for licensed homes include health, safety, training, inspections, and liability insurance with the state and local government.
For more details about Kansas rules for an in-home daycare business, please see: Kansas Child Care Licensing
Oklahoma Home Daycare Insurance
In Oklahoma, child care facilities must be licensed under the Oklahoma Child Care Facilities Licensing Act if they are operating regularly, including in-home daycare settings, unless they are eligible for an exemption (such as informal care, care by relatives, or care operating fewer than 15 hours per week).
There are two main home-based license types:
A Family Child Care Home may care for up to 7 children in the provider’s home.
A Large Family Child Care Home may care for 8 to 12 children.
Oklahoma’s licensing rules include requirements for caregiver qualifications, child-to-caregiver ratios, safety, health, etc. Certain programs (such as overnight care) are covered under “part of the 24-hour day” definitions, and capacity counting includes related children and children of assistants or substitute caregivers.
Regarding insurance:
Under “Demarion’s Law” (10 O.S. § 404.3), child care facilities are required to maintain general liability insurance of at least $200,000 per occurrence.
Facilities that cannot obtain such insurance, or that choose self-insurance allowed under state law, must notify parents and DHS, and post conspicuous notice, among other requirements.
Providers must prove to the state that they reviewed their policy with their agent yearly and continue to meet coverage requirements. For a full list of all Oklahoma rules for home daycare facilities, please see: Oklahoma Child Care Licensing
Need Help Setting Up a Home Daycare Business?
Running a home daycare business is complicated enough. When considering insurance, you need an insurance agent committed to your business.
Regulations change frequently, and the best way to safeguard your business is by securing proper insurance coverage.
The Loomis Insurance Agency is not an insurance broker. We are an independent agency focused on doing business in Missouri, Oklahoma, Kansas, and Arkansas. This allows us to understand the special rules in those states and tailor an insurance policy specifically for your business.
To set up a phone call with a Loomis insurance specialist, please call 800-743-7205 or click the following link and fill out our contact us form.
Loomis Insurance is committed to servicing you.