Last updated: September 14, 2026
Arkansas sets daycare liability floors by license type: $500,000 or $1,000,000 for centers and OST, $100,000 for family and registered homes.
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Arkansas daycare liability requirements by facility type
Licensed child care centers and out-of-school-time (OST) facilities must maintain childcare liability insurance of $500,000 per occurrence for capacity 1–74, or $1,000,000 for capacity 75 and up. 20 CAR Part 1025 (centers) and Part 1027 (OST) state those floors under Act 778 of 2009 / Act 23 of 2015.
Licensed child care family homes and registered child care family homes must maintain at least $100,000 per occurrence. See 20 CAR Part 1026 for licensed family homes and Part 1028 for registered homes (capacity 1–5). Do not apply the center capacity schedule to a home program.
Provide verification of the required coverage to the Licensing Specialist before application approval, or obtain coverage and proof before children are in care if it could not be arranged earlier. Entities immune under Ark. Code §21-9-301 are excepted from needing general liability to be licensed. Statutory authority for minimum levels appears in Ark. Code §20-78-227 (compiled Title 20 Chapter 78 excerpt).
How much liability coverage should you buy above the Arkansas floor?
The capacity-based or home minimum is a legal floor, not a finding that the amount will cover every loss. Send any lease or contract requiring higher limits, and ask for comparable options at your category minimum and at higher limits with the same activities and deductible.
Review the per-occurrence limit and any aggregate or separate abuse-related limit, and ask how defense costs affect available protection. If considering an umbrella, identify required underlying policies and childcare exclusions.
Coverage to compare for an Arkansas daycare or preschool
| Operation or exposure | Coverage question to resolve |
|---|---|
| Children and visitors at your premises | Which liability coverage applies to injuries and property damage, and which activities are excluded? |
| Supervision, instruction and care | Is professional liability included or separate? How does the proposal treat abuse or molestation allegations? |
| Staff and volunteers | Who is insured, and what employee injury or employer-liability coverage is needed? |
| Furniture, supplies and play equipment | Who owns the property, what values are insured and which losses or locations are excluded? |
| School pickup and off-site activities | What vehicle and business coverage is needed for the drivers, trips and activities described? |
General liability, professional liability and abuse or molestation coverage answer different questions. Have the provider explain premises injury, supervision and staff-related claims, and confirm that your services, people and locations are described.
For a home, ask the residential insurer how business childcare is treated and compare any endorsement with a separate childcare policy. For a leased center, distinguish landlord-owned property from your furnishings before adding property or business-income coverage.
How much does Arkansas 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 14, 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.
Request quotes using your actual license category, capacity band and services. A registered home at $100,000 should not be budgeted like a 75-child center at $1,000,000. Disclose transport early; commercial auto limits are separate from the facility liability schedule.
Workers’ compensation and employee coverage in Arkansas
The Arkansas Department of Labor and Licensing workers’ compensation pages and the Commission’s employer/employee brochure explain that most employers with three or more employees must carry coverage. Confirm how owners, partners, part-time staff and volunteers count for your structure before you buy coverage or claim an exemption.
Give the agent your business structure, worker roles and payroll, and ask how owners and any exemptions are treated. Keep this separate from the childcare liability floor.
Home care, transport and exclusions: resolve gaps before binding
For care in a residence, disclose the business to your home insurer and compare any endorsement with a separate childcare policy using the same capacity and activities.
If the facility transports children, commercial auto insurance is required before transport begins, with at least $100,000 combined single limit, $100,000 uninsured and $100,000 underinsured motorist coverage, and $5,000 personal injury protection per passenger based on manufactured seating. Those amounts are in 20 CAR § 1025-1401(f) for centers, with the same dollar floors in § 1026-1301 (licensed family homes), § 1027-1301 (OST) and § 1028-1301 (registered homes). Verify coverage with the Licensing Specialist before transporting. A premises liability certificate does not establish those vehicle coverages. State institutions, political subdivisions, or other entities entitled to immunity under Ark. Code §21-9-301 are not required to carry that commercial auto coverage before transporting—the same public-entity exception as for facility liability (see 20 CAR § 1025-1401(f) and parallel transport sections). Private operators should treat the dollar floors above as required. For walking trips, playground visits or water activities, confirm inclusions and exclusions before binding.
Prepare your Arkansas daycare insurance quote
- 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.
Get a daycare insurance quote
Start your daycare insurance quote with Simply Business. Answer a few questions about your business and let their team help you find coverage.
Affiliate link — we may earn a commission at no additional cost to you.
Data for Arkansas
Free research and planning tools for starting a daycare in Arkansas. Most of the data pages compare every state, so look for Arkansas in the table or map.
- Small business health insurance rates for 2027: requested and approved rate changes, with a budget calculator.
- Disaster declarations by state: how often Arkansas has had a federal disaster declaration since 2016.
- New-employer unemployment tax by state: what a new employer in Arkansas can expect to pay per worker in year one.
- Insurance requirements for contracts: what limits, certificates and endorsements commercial and public buyers ask for.
- Daycare break-even calculator: how many enrolled children you need to cover costs and pay yourself.
Frequently asked questions
What liability insurance minimum applies to an Arkansas child care center?
Licensed centers and OST facilities must maintain childcare liability insurance of $500,000 per occurrence for licensed capacity 1–74, or $1,000,000 for capacity 75 and up. Licensed and registered family homes use a $100,000 per-occurrence floor. Verification is due to the Licensing Specialist before application approval (or before care if coverage was delayed).
Do registered Arkansas family homes need the same liability as licensed homes?
Yes for the dollar floor: registered child care family homes (capacity 1–5) also require $100,000 per occurrence childcare liability insurance. Do not apply the center $500,000/$1,000,000 capacity schedule to a family or registered home.
What commercial auto limits apply when an Arkansas facility transports children?
Before transporting, commercial auto is required with at least $100,000 combined single limit, $100,000 uninsured and $100,000 underinsured motorist coverage, and $5,000 personal injury protection per passenger based on manufactured seating (20 CAR § 1025-1401(f) and parallel §§ 1026-1301, 1027-1301, 1028-1301). Verify coverage with the Licensing Specialist before transport begins. Public entities immune under Ark. Code §21-9-301 are excepted from that commercial auto requirement; private operators are not.
When must an Arkansas daycare buy workers’ compensation?
Arkansas generally requires workers’ compensation for employers with three or more employees. Confirm your count—including owners and part-time help—using current AWCC employer guidance before you buy coverage or claim an exemption.
Related guides
Daycare Insurance · Arkansas / Daycare
Requirements and source benchmarks checked September 14, 2026. Policy terms and availability depend on the insurer and your business.
