Maryland Daycare Insurance

Last updated: September 14, 2026

Maryland centers and Letters of Compliance have no licensing general-liability purchase mandate. Registered family child care providers get an insurer offer of at least $300,000 under Insurance §19-203—compare that offer with your contracts and each quote.

Maryland daycare liability: centers vs. family child care

Licensed child care centers under COMAR 13A.16 and Letters of Compliance under COMAR 13A.17 have no licensing mandate for standalone facility general liability insurance. A Maryland Insurance Administration hearing packet states that Maryland law does not currently require standalone liability insurance as part of registration or licensure. The OCC center and LOC application resource guide requires workers’ compensation documentation, not facility GL proof.

Registered family child care providers face a different rule aimed at insurers, not a purchase mandate on the provider. Insurance Article §19-203 requires homeowner’s liability insurers to offer registered family child care providers coverage of at least $300,000 for liability arising from child-care activities. Ask whether that offer was made and compare it with a separate childcare policy before relying on a homeowners endorsement alone.

Leases, school contracts and subsidy agreements can still require higher limits even when licensing does not. Match the quote to your exact category—center, LOC, family child care or large family child care.

How much liability coverage should you buy above the minimum?

Because centers and LOC programs have no licensing GL dollar floor—and family providers receive an insurer offer rather than a purchase mandate—treat any limit you buy as a risk and contract decision. Send the provider any lease, school agreement or other contract requiring higher limits. Ask for comparable options at the regulatory floor and at higher 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.

Coverage to compare for a Maryland daycare or preschool

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 Maryland 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. Disclose holiday and summer operations, transport and off-site activities when offered. Comparing these details consistently is more useful than assigning every Maryland program the same estimated premium.

Workers’ compensation and employee coverage in Maryland

Maryland generally requires workers’ compensation when you have one or more covered employees. Chesapeake Employers’ Insurance Company is the residual market (insurer of last resort). OCC application materials for centers and Letters of Compliance require documentation of workers’ compensation coverage.

Give the agent your business structure, worker roles and payroll. Keep workers’ compensation separate from any facility liability policy you choose to buy for contracts or risk management.

Transport, family MV offers and keeping records aligned

Center licensing materials reviewed for this guide do not state a daycare-specific commercial-auto dollar floor beyond ordinary motor-vehicle financial responsibility when you transport. For registered family child care, Insurance Article §19-106 requires motor vehicle liability insurers to offer coverage at least equal to Transportation Article §17-103 minimums for bodily injury to a child passenger and arising from child-care activities. MIA consumer advisory materials cite offer amounts of at least $30,000 / $60,000 bodily injury and $15,000 property damage.

Calendar renewals with OCC paperwork. If you rely on a homeowners or personal-auto offer for family care, confirm childcare activities are actually covered and that certificates match the named insured and premises.

Prepare your Maryland 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.

Frequently asked questions

Do Maryland child care centers need liability insurance to get licensed?

COMAR 13A.16 and 13A.17 do not mandate standalone facility liability insurance as a licensing condition for centers or Letters of Compliance. The Maryland Insurance Administration has stated that Maryland law does not currently require standalone liability coverage as part of registration or licensure. Application packets still require workers’ compensation documentation.

What does Insurance §19-203 mean for registered family child care providers?

Homeowner’s liability insurers must offer registered family child care providers coverage of at least $300,000 for liability arising from child-care activities. That is an insurer-offer rule, not a licensing purchase mandate on the provider.

What motor vehicle offer rule applies to Maryland family child care?

Under Insurance Article §19-106, motor vehicle liability insurers must offer registered family child care providers coverage at least equal to Transportation Article §17-103 minimums for bodily injury to a child passenger and arising from child-care activities. MIA consumer materials cite offer amounts of at least $30,000 / $60,000 BI and $15,000 PD.

When must a Maryland daycare buy workers’ compensation?

Maryland generally requires workers’ compensation from the first covered employee. Chesapeake Employers’ Insurance Company serves as the residual market (insurer of last resort). OCC center and LOC application materials require documentation of workers’ compensation coverage.

Related guides

Daycare Insurance · Maryland / Daycare

Requirements and source benchmarks checked September 14, 2026. Policy terms and availability depend on the insurer and your business.