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Colorado’s child care rules mandate liability insurance for resident camps and substitute-staffing agencies — and, surprisingly, not for daycare centers. What 8 CCR 1402-1 does require of centers is narrower: before any field trip, the center must collect liability-insurance information from every parent and staff member who drives children in their own car. The broad coverage decision is yours; the state’s WC rule — first employee, everyone paid is presumed an employee — is not.
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What Colorado Actually Requires
| Coverage | Colorado requirement |
|---|---|
| General liability (centers) | No licensing mandate — the public-liability requirements in 8 CCR 1402-1 attach to resident camps and substitute agencies, not centers |
| Field-trip drivers | Required: the center must obtain liability-insurance information from parents and staff who transport children in personal vehicles, and verify licences |
| Workers’ compensation | Required from the first employee — anyone paid for work is presumed an employee in Colorado |
Read Which Rulebook the Mandate Lives In
Secondary sources routinely tell Colorado daycare owners that “every facility must carry public liability insurance” — and the sentence is real, but it sits in the resident-camp rules (2.408) and the substitute-placement agency duties, not the center chapter. For centers the enforceable insurance duty is the field-trip one: collect and verify coverage information from anyone driving children, before the trip.
The market completes the picture the usual way — Denver-metro leases and the CCCAP subsidy paperwork want facility coverage regardless — and Colorado’s workers’-comp presumption (paid means employee, from hire one) makes the employment coverage the state’s real insurance mandate for daycares.
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 Colorado from the first employee).
- Property and contents for the build-out, equipment and food stock.
Parents ask if you’re insured. So do licensors.
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Frequently Asked Questions
Is liability insurance required for a Colorado daycare?
Not for centers as a licensing condition — the public-liability mandates in 8 CCR 1402-1 apply to resident camps and substitute-placement agencies. Centers must collect liability-insurance information from parents and staff who drive children on field trips. Facility coverage is driven by leases and subsidy contracts.
When does a Colorado daycare need workers’ comp?
From the first employee — Colorado presumes anyone paid for work is an employee, part-time and family included, per the Colorado Division of Workers’ Compensation.
Comparing states? See daycare insurance requirements in every state, or the full guide to starting a daycare in Colorado.
Sources
| Source | What it confirms |
|---|---|
| 8 CCR 1402-1 (current) | Camp/substitute-agency insurance mandates; center field-trip driver rule |
| Colorado DWC | First-employee WC rule and the presumption of employment |
