Last updated: September 14, 2026
Indiana licensed child care centers must carry liability insurance and insurance on center-owned or leased vehicles used to transport children—no published dollar floor. Workers’ compensation generally applies from the first employee.
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Indiana center daycare liability: insurance required
470 IAC 3-4.7-20 states that the center shall carry (1) liability insurance and (2) insurance on any child care center owned or leased vehicle used to transport children while under the care of the center. Liability insurance is mandatory for licensed centers. No minimum dollar amount appears in the section. Give the insurer your center name, address and capacity so the certificate matches what FSSA/OECOSL expects.
The center rule is distinct from home licensing. No analogue to 470 IAC 3-4.7-20 was located in 470 IAC 3-1.1 home licensing text or the Homes Interpretative Guide for a provider-level CGL mandate; that guide discusses vendor liability certificates for contracted enrichment services. Registered ministries and CCDF-exempt paths have separate statutory conditions—verify contracts separately rather than assuming the center rule applies unchanged.
How much liability coverage should you buy?
Where the rules set no dollar floor, treat any quoted limit as a purchasing decision against your exposures and contracts—not as a statutory number. Send the provider any lease, school agreement or other contract requiring higher limits. Ask for comparable options at different limits, with the same covered activities and deductible, so you can see the cost difference.
Review the per-occurrence limit and any aggregate or separate abuse-related limit. Ask how defense costs affect available protection. If considering an umbrella, have the agent identify the underlying policies it requires and the childcare exposures it excludes; do not assume it fills every gap in the base policy.
Center-owned or leased transport vehicles
470 IAC 3-4.7-20(2) requires insurance on center-owned or leased vehicles used to transport children while under the center’s care. No dollar floor is stated. Ask the agent whether commercial auto or other business-auto forms fit those vehicles and drivers, and keep evidence aligned with licensing reviews.
Coverage to compare for a Indiana 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 how the proposal handles a premises injury, a supervision allegation and a claim involving a staff member. Confirm that the services you offer are described and that the relevant people and locations are insured.
For a home, ask the residential insurer how business childcare affects its coverage and compare the proposed endorsement with a separate childcare policy. For a center or preschool, distinguish landlord-owned property from your furnishings, supplies and improvements. Ask which causes of loss and interruptions are covered before adding property or business-income protection.
How much does Indiana 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 and services. Comparing those details consistently is more useful than assigning every Indiana program the same estimated premium.
Workers’ compensation from the first employee
Indiana employers under IC 22-3-2 through 22-3-6 (except statutory exemptions) must insure or qualify as self-insured under IC 22-3-5-1. The Workers’ Compensation Board describes coverage from the first day on the job for eligible employees. Failure to insure is a Class A infraction; guidance discusses fines up to $10,000 and a separate civil penalty of $100 per day for failure to provide proof of compliance after a Board request. Keep employee-injury coverage separate from the center liability mandate.
Keep coverage and licensing evidence aligned through the year
Calendar policy renewal alongside licensing paperwork. Resolve cancellation notices or a replacement policy before a lapse while children remain in care. Do not assume reduced enrollment, a school break or a change in insurer removes obligations that apply to your Indiana license type.
Before adding transport, provide the insurer with vehicle ownership, driver and trip details. Ask about commercial auto or hired/non-owned exposures and coverage for the off-site activity itself. Update the agent before a capacity increase, move or additional location so the policy and evidence match what FSSA/OECOSL expects to see.
Prepare your Indiana 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 Indiana
Free research and planning tools for starting a daycare in Indiana. Most of the data pages compare every state, so look for Indiana in the table or map.
- New-employer unemployment tax by state: what a new employer in Indiana can expect to pay per worker in year one.
- Unemployment tax changes for small employers: recent state rule changes to budget for before you hire.
- Childcare subsidy waitlists and funding: subsidy waitlists and provider payment delays in selected states.
- Daycare break-even calculator: how many enrolled children you need to cover costs and pay yourself.
- Insurance requirements for contracts: what limits, certificates and endorsements commercial and public buyers ask for.
Frequently asked questions
Does Indiana require center daycare liability insurance?
Yes. 470 IAC 3-4.7-20 requires licensed centers to carry liability insurance and insurance on any center-owned or leased vehicle used to transport children while under the center’s care. No minimum dollar amount appears in the section.
Do Indiana child care homes have the same general-liability mandate?
No parallel “shall carry liability insurance” section was located in 470 IAC 3-1.1 home licensing materials reviewed. The Homes Interpretative Guide discusses vendor liability certificates for contracted enrichment services, not a provider CGL mandate. Confirm your path with FSSA/OECOSL.
What transport insurance do Indiana centers need?
470 IAC 3-4.7-20(2) requires insurance on any child care center owned or leased vehicle used to transport children while under the center’s care. No dollar floor is stated. Homes guidance separately notes keeping driver license and insurance proof for individuals who transport children.
When must an Indiana daycare obtain workers’ compensation?
Generally from the first employee. Employers under IC 22-3-2 through 22-3-6 (except statutory exemptions) must insure or qualify as self-insured under IC 22-3-5-1. Failure to insure is a Class A infraction; separate civil penalties can apply for failure to provide proof of compliance after a Board request.
Related guides
Daycare Insurance · Indiana / Daycare
Requirements and source benchmarks checked September 14, 2026. Policy terms and availability depend on the insurer and your business.
