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New Jersey requires the policy and then makes the owner personally answerable for the other one. The Manual of Requirements (N.J.A.C. 3A:52) makes comprehensive general liability insurance a licensing requirement for child care centers. And New Jersey’s workers’-comp statute is the one that names names: corporate officers actively engaged in the business are personally liable for a failure to insure — alongside penalties of up to $5,000 per ten days and criminal exposure that reaches a fourth-degree crime.
One policy, priced for a New Jersey daycare
Next Insurance writes daycare general liability with abuse & molestation coverage, plus commercial auto and workers’ comp where states allow, as one bundle — quoted online in minutes.
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What New Jersey Actually Requires
| Coverage | New Jersey requirement |
|---|---|
| Comprehensive general liability | Required for licensed centers (N.J.A.C. 3A:52-3.4, Manual of Requirements, Dec 2023 edition) |
| Workers’ compensation | Required for all employers from the first non-owner worker — no headcount threshold |
| Going without WC | Up to $5,000 per 10 days; knowing failure = fourth-degree crime; officers actively engaged are personally liable (34:15-79) |
Both Policies Are Licence Furniture Here
New Jersey leaves less to the market than most states on this page: the CGL certificate is part of the licensing file, and the workers’-comp obligation attaches with the first paid helper. The statute’s officer-liability clause is the sentence worth reading twice — president, vice-president, secretary, treasurer, personally liable for an uninsured operation. The entity you formed to separate the daycare’s problems from your own does not separate you from this one.
Licensing applies from six children, so nearly any real program is inside the regime; budget both policies as part of the licence, not after it.
The Coverages Every Daycare Carries Regardless
- General liability with abuse & molestation coverage. The playground injury and the allegation are different claims; a daycare policy without A&M cover is missing the exposure the business is actually judged on.
- Commercial auto if you transport children — a personal policy excludes business use.
- Workers’ compensation once you employ staff (required in New Jersey from the first non-owner worker — officers personally liable for failure).
- Property and contents for the build-out, equipment and food stock.
Parents ask if you’re insured. So do licensors.
A certificate of insurance answers both in one page. Quotes are free and don’t require a phone call.
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Frequently Asked Questions
Is liability insurance required for a New Jersey daycare?
Yes — the Manual of Requirements for Child Care Centers (N.J.A.C. 3A:52) requires comprehensive general liability insurance for licensed centers, which cover any program caring for six or more children under 13.
What happens if a New Jersey daycare skips workers’ comp?
Civil penalties of up to $5,000 per ten-day period, a disorderly persons offense — a fourth-degree crime if knowing — and personal liability for corporate officers actively engaged in the business, under N.J.S.A. 34:15-79.
Comparing states? See daycare insurance requirements in every state, or the full guide to starting a daycare in New Jersey.
Sources
| Source | What it confirms |
|---|---|
| N.J.A.C. 3A:52 — Manual of Requirements (Dec 2023) | The CGL licensing requirement |
| N.J.S.A. 34:15-79 | WC penalties and officer personal liability |
