When it comes time to review, purchase and buy insurance, it is easy for business owners to get caught up in the numbers. That is what insurance is all about, isn’t it? True, insurance is largely about numbers, but there is a lot more. Insurance is about sleeping at night, it is about protecting others; family, friends, employees, even people we do not know. Insurance is about doing the right thing! Numbers are cold and hard and from time to time, the impact of insurance and risk management just cannot be boiled down to a number. It is hard, if not impossible, to come up with a better example than the childcare industry. When consideration is given to the extreme value of the assets that has been left in their care, it becomes clear that there is a distinct difference between insurance and risk management.
Insurance is the transfer of risk from the insured to the insurance carrier. Risk management entails much more; the aim being at not only transferring, but also eliminating or reducing risk. Childcare providers are subject to a wide range of risks or hazards. In the case of facilities, buildings and equipment often create a hazard that can be transferred to an insurance company. Additionally risk exist both inside and out. The condition of the building and play area, proximately of streets, parking lot layout and visibility, access to kitchens, cleaning supplies and medications. Each of these poses unique threats, directly and indirectly, to the children and employees. Policy and procedures relating to distribution of medications, child supervision requirements, and authorized student pickup, these and many other hazards must be considered. Of course, as far as the numbers go, a well-written policy should provide adequate production through the policies Commercial General Liability section.
Stop for a second, because this is where the numbers lie. Yes, your business should be financially protected. But will it help you sleep at night? Insurance companies spend a great deal of money developing and attempting to help businesses implement sound risk management through the development and sharing of loss prevention programs. Overtime this will help them to be more profitable as it will lead to fewer claims. But more importantly it is the right thing to do. Knowing that we did not take an action that could have eliminated a hazard that lead to the injury of another person is a bitter pill to swallow. But it is even worse when that person is a child. The bottom-line; insurance is important, however, taking the time to do the right thing may be critical.
The wide range of facilities and operations create a wrinkle that can make risk placement difficult. This is one reason to start with an agency that has a focused effort in this sector is a good start.
Below is a partial list of issues that complicate and limit access to coverage for provider of childcare services:
Before and after school programsHead Start programsPrograms offering field tripsIn-home centers
Night-time operations24 hour operationsLatchkey operations
TruePoint provides access to markets for all of the above, as well as many other factors that limit insurance options. Many of our coverage options provide loss prevention and information services, several of which are specifically designed for the child care providers.
The importance of a good Risk Management program has been noted, but little was said about how it is done or where to start. Obviously an agent with solid experience in the industry is a first thought. However, the ability to access a loss prevention services specializing in the Child Care Service is even better. We cannot put a value on our children. With that said, it is hard to imagine an industry where the impact of a risk management plan has as much promise of making a difference. Yes, insurance is about the numbers, but it goes behind that. If your agent does not offer you access to focus loss prevention program, or is unsure how to help you in developing your own risk management plan, then it may be time to learn more.
If you’re interested in learning more about loss prevention programs for child care providers or explore coverage options for your unique risk, feel free to contact TruePoint’s Commercial Insurance Division at (502) 410-5089.
TruePoint Insurance Group, LLC
6287 Taylorsville Rd.
Fisherville, KY 40023
(888) 706-5423
TruePoint Insurance Group, LLC is not licensed to practice law, nor can it provide legal counsel. This summary is not intended as a legal opinion. We cannot warrant that the opinions and representations provided in this summary are accurate. TruePoint Insurance Group, LLC has provided this summary of the Virginia Graeme Baker Act for your awareness. The summary may or may not identify your requirements as a pool or spa owner. If you own a pool or spa you are advised by TruePoint Insurance Group, LLC to refer your specific situation to legal counsel.
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