California Daycare Insurance: Home & Center Costs

Last updated: September 16, 2026

California daycare insurance costs depend on whether you run a home program or a center, the children you serve and the coverage you choose. Compare liability, professional-services and abuse-coverage terms, employee coverage and any transportation. The family-home insurance, bond and affidavit options below are separate from the price of a policy.

Family child care home insurance versus center coverage

For a family child care home, describe the licensed program to both the childcare insurance provider and the insurer covering the residence. Ask how coverage applies to the rooms, yard and play equipment used by children. A homeowners declaration showing an address does not demonstrate that the childcare business is covered.

For a center, list all locations, infant care, employees, volunteers and activities away from the site. Give the agent the lease’s insurance requirements. California’s family-home insurance/affidavit provision is not a substitute for checking a center’s own licensing and contractual obligations.

How much does California 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 program, request separate explanations of the childcare liability premium and any effect on your home coverage. For a center, identify who insures the building, leased improvements, furniture and outdoor equipment. Ask whether property coverage has separate restrictions or deductibles that matter at your address, and which covered losses could trigger business-interruption payments.

Capacity and services should be consistent across competing applications. A quote for six preschoolers with no transportation should not be compared as though it covers twelve children, infants and school pickup. Tell the provider about the planned expansion before relying on the quoted premium.

California’s $100,000/$300,000 home-daycare rule

Under Health and Safety Code §1597.531, family day care homes have three specified routes: liability insurance of at least $100,000 per occurrence and $300,000 annual aggregate for the described negligence injuries; a $300,000 aggregate bond; or the department’s signed-parent-affidavit process instead of that insurance or bond. Those dollar figures are coverage amounts, not the premium or cost of buying a bond.

The affidavit route does not buy protection. It documents the absence of the specified insurance or bond. Ask a licensed agent what coverage would respond to your business’s risks even if the licensing rule allows this alternative. Keep the required records current as families enroll.

For rented premises or shared HOA space, the statute addresses parent disclosures and conditional additional-insured requests. If the owner or HOA requests to be added in writing, the addition does not cancel or prevent renewal, and that party pays the extra premium, the statutory conditions can require adding it. Send the actual request to your agent rather than assuming every landlord is automatically insured.

Employers generally must secure workers’ compensation when they have an employee; check ownership and other specific situations with the California Division of Workers’ Compensation. Do not use your general liability certificate as proof of employee injury coverage.

Check exclusions before choosing the cheapest proposal

Ask how the quote handles negligent supervision and abuse or molestation allegations. General liability, professional liability and abuse coverage are not interchangeable labels. Confirm the insured people, activities, limits and defense provisions rather than relying on “daycare insurance” printed on the proposal.

Describe pools or water activities, pets, trampolines, field trips, overnight care and any care outside your usual age range if offered. The insurer may exclude, limit or decline particular activities. Do not assume an online price remains valid after changing the operation described in the application.

For transportation, identify the business-owned, personal, rented or staff-owned vehicles used and who drives them. Ask about the appropriate auto and hired/non-owned coverage arrangements. A childcare liability policy or a certificate for the building does not establish that a vehicle trip is insured.

Request quotes with the right documents

• 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.

If a landlord or HOA asks for additional-insured status, distinguish the certificate from the endorsement providing that status. Ask whether adding the party changes the price and whether the proposed policy can meet the request. Have the agent confirm the named insured matches the individual or entity operating the licensed program.

Frequently asked questions

Does every California daycare have to buy a $100,000 policy?

No. The cited family-home statute specifies insurance limits, a bond alternative and a parent-affidavit alternative. It is not a universal rule for every center. Confirm your program category and compare protection separately from the minimum licensing route.

Does signing an affidavit protect the provider from a lawsuit?

The affidavit is a statutory disclosure about insurance or bond status; it does not create insurance coverage. Do not treat it as an insurer’s promise to pay defense costs or a claim.

Is a $300,000 bond the same as $300,000 liability insurance?

No. A bond and an insurance policy have different terms and claims arrangements. Ask the agent or surety to explain the obligation, eligible claims, exclusions and any reimbursement agreement before choosing between them.

Can I insure a daycare operated in a rented home?

Ask providers to assess the actual operation and disclose the rental arrangement. Supply any landlord request and check the statutory additional-insured conditions. Availability and acceptance depend on the insurer and the details of the business.

Related guides

Daycare Insurance · California / Daycare

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