Minnesota Daycare Insurance

Last updated: September 13, 2026

Compare Minnesota daycare insurance for your home or center, including liability, employee coverage and parent-notice needs. Review the actual policy terms before choosing a price or replacing your existing coverage.

Minnesota daycare insurance notices: the rule in effect now

As of September 13, 2026, Minnesota Statutes section 142B.62 governs the childcare license-holder insurance notices discussed here. Before admission, parents must receive written notice stating whether the program carries liability insurance. The statute also addresses certificate availability, notices when insurance status changes and documentation of a parent’s or guardian’s receipt.

If the license holder has no liability insurance, it must give parents the annual notice on the commissioner’s form. For an insured program, the statute requires information about certificate availability and the policy expiration or renewal date. Keep the relevant certificate available on request and maintain the signed notice records.

There is an important renewal distinction: for a continuous policy renewing annually, the initial notice can state the renewal date and remain valid until coverage changes or lapses. The law does not demand a new notice every year solely because that unchanged continuous policy renews. Any insurance-status change requires immediate written notification.

The statute’s repeal note concerns a future change. 2026 Chapter 127, article 13, sections 25–26 schedules the repeal for July 1, 2027, as part of the licensing-law changes. It does not mean section 142B.62 is already gone in September 2026. Confirm the applicable successor requirements with your licensor when planning for that transition.

Compare coverage as well as the disclosure paperwork

A signed notice records information; it does not pay a liability claim or supply an insurer’s defense. Ask the provider to explain general liability, professional liability and abuse or molestation protection for the care you offer. Identify separate limits, exclusions and whether defense costs reduce available coverage.

Give the agent your licensing category and any lease or other contract specifications. Ask it to identify the legal operator as named insured, describe all covered activities and provide the required endorsements. A large headline limit is not enough if the policy excludes a service your program regularly provides.

How much does Minnesota daycare insurance cost?

There is no single premium for every daycare. As a broad reference, Insureon’s national human-and-social-services customer medians are $91/month for general liability, $135 for a business owner’s policy and $99 for professional liability, checked September 13, 2026. That sample is broader than daycare; these are not state daycare averages or Simply Business prices.

Use those figures only to understand separate budget categories. A business owner’s policy can bundle liability and property, so do not add every figure as though it were a required package. Request a childcare-specific proposal using your program type, child count and ages, payroll, transportation, claims history and required limits.

Compare the total annual premium, deductible, included activities and any separate abuse-coverage limit. Ask about installment charges, endorsements and the cost of changes during the year. Two prices are comparable only after the provider explains the differences in protection.

For a home or center, use the same enrollment, staff and services in each quote request. If you are changing insurers to reduce cost, compare professional and abuse-related coverage separately from general liability. Ask the new provider to explain any difference in claim-reporting terms and continuity before the old policy ends.

Home childcare, property and staff coverage

A family childcare provider should disclose the business to the residential insurer and ask how its policy treats childcare liability and business equipment. Compare any offered endorsement with separate childcare insurance using the same capacity and activities. Ask where each policy applies so a claim involving the home and business does not expose an unresolved gap.

A center renting premises should separate the landlord’s property from its own furniture, supplies and improvements. If adding business-income protection, ask about covered causes of loss, waiting periods and exclusions. An interruption in enrollment or a licensing-related closure does not automatically qualify for payment.

Minnesota DLI’s mandatory-coverage guidance explains that employers generally must purchase workers’ compensation insurance or obtain self-insured status, with specified exceptions. Review your entity, owners and employees with the provider before hiring. Childcare liability does not replace employee-injury coverage, and calling an assistant a contractor does not settle their legal status.

Changing coverage without creating a lapse or outdated parent notice

Before accepting a replacement policy, compare effective dates and have the insurer confirm when coverage is bound. Review certificate details and policy terms before cancelling existing coverage. If a professional or abuse-related component is claims-made, ask how its reporting terms and any retroactive date affect continuity.

Then review the Minnesota notice requirements for the actual change. A change in insurance status calls for immediate written notice; a change in coverage or lapse also ends reliance on the continuous-policy notice described above. Keep the new documents with the signed parent records and coordinate any licensing questions with your licensor.

If transport or off-site care is added, tell the provider about drivers, vehicle ownership and activities first. Ask about commercial auto or hired/non-owned coverage as applicable. A new service can change the insurance you need even when the policy renewal date remains months away.

Prepare a Minnesota daycare insurance quote request

• Legal operator name, address, permit or certificate type and requested coverage date.
• Licensed capacity, actual enrollment, ages served, hours and all locations.
• Staff, volunteers, payroll and screening/supervision procedures.
• Transportation, field trips, water activities and other services offered.
• Existing policy, claim history and insurance requirements from leases or contracts.

Ask each provider to identify the named insured, covered activities, limits, deductibles, exclusions and endorsements. Confirm whether defense costs reduce any relevant limit and how claims must be reported. If a quote cannot cover an activity, resolve that gap rather than assuming a certificate will make the proposal acceptable.

Frequently asked questions

Does Minnesota require a new insurance notice at every renewal?

Not for an unchanged continuous policy when the initial notice states its annual renewal date. That notice remains valid until coverage changes or lapses. Different notice obligations apply to uninsured programs and to changes in insurance status.

Is section 142B.62 already repealed?

No, as of this guide’s September 13, 2026 review. The 2026 session law schedules the repeal for July 1, 2027. Check with your licensor for the successor requirements when planning for that date.

Does telling parents I am uninsured replace liability coverage?

No. A notice satisfies a disclosure purpose; it does not provide claim payments or a defense. Review the protection your operation needs and any contractual insurance obligations separately from the parent-notice process.

What should I compare before switching daycare insurers?

Match the covered operation, limits, exclusions and effective dates. Review supervision, abuse-related and any claims-made coverage separately. Ask how continuity is maintained, then update certificates and parent notices as required for the actual change.

Related guides

Daycare Insurance · Minnesota / Daycare

Requirements and source benchmarks checked September 13, 2026. Policy terms and availability depend on the insurer and your business.