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Minnesota runs the most paperwork-heavy insurance disclosure in American child care. Under Minn. Stat. §245A.152, every licence holder tells every family, in writing and before admission, whether it carries liability insurance. Insured programs must disclose the policy’s expiration date, keep the certificate available for inspection, and re-notify at every renewal or lapse. Uninsured programs file an annual notice on the commissioner’s own form.
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What Minnesota Actually Requires
| Coverage | Minnesota requirement |
|---|---|
| Liability insurance | Insurance or a standing disclosure regime — written pre-admission notice of status either way (§245A.152) |
| If insured | Certificate available for inspection to current AND prospective parents; expiration/renewal date disclosed; new notice at every renewal or lapse |
| If uninsured | Annual notice on the commissioner’s form to every family — plus immediate written notice of any status change |
| Workers’ compensation | Required from the first employee, no minimum — part-timers count (DLI) |
Disclosure With a Renewal Clock
Other insure-or-notify states ask once; Minnesota asks forever. The statute’s genuinely unusual demand is the expiration date — parents are entitled to know not just that coverage exists but when it runs out, and to a fresh notice when it renews or lapses. A lapsed policy can’t hide in a drawer here; the paperwork regime surfaces it to every family immediately.
Between the annual uninsured form, the inspection right for prospective parents, and Minnesota’s no-minimum workers’-comp rule, the state’s position is clear: it won’t force the liability policy, but it will make not having one a recurring conversation with every customer you have.
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 Minnesota from the first employee, no minimum).
- Property and contents for the build-out, equipment and food stock.
Parents ask if you’re insured. So do licensors.
A certificate of insurance answers both in one page. Quotes are free and don’t require a phone call.
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Frequently Asked Questions
Is liability insurance required for a Minnesota daycare?
Not absolutely — but Minn. Stat. §245A.152 requires written notice to every family before admission stating whether the program carries it. Insured programs must disclose the policy’s expiration date and keep the certificate available for inspection; uninsured programs file an annual notice on the commissioner’s form and must notify all parents immediately of any change.
When does a Minnesota daycare need workers’ comp?
From the first employee — Minnesota has no minimum headcount, and part-time staff count, per the Department of Labor and Industry.
Comparing states? See daycare insurance requirements in every state, or the full guide to starting a daycare in Minnesota.
Sources
| Source | What it confirms |
|---|---|
| Minn. Stat. §245A.152 | The full pre-admission / renewal / annual-form disclosure regime |
| Minnesota DLI | No-minimum WC rule |
