Tennessee Daycare Insurance

Last updated: September 14, 2026

Tennessee daycare insurance has separate requirements for liability, medical payments, abuse coverage and transport. Compare the limits for your license category, then confirm that the quote includes every coverage your program needs.

Tennessee daycare insurance minimums by program type

Tennessee’s February 2026 child care licensure rules, section 1240-04-01-.05(4), set the following insurance requirements. Give the provider your exact category and ask it to identify each required coverage in the proposal.

Ask the agent to distinguish the medical-payments coverage for facility operations from the coverage for transported children. A general liability certificate alone does not show that all these requirements are met. Keep documentation, including the declarations page, in the agency’s records and available for Department review.

The rule includes qualifying self-insured public arrangements and other agency or parent-entity self-insurance programs that provide the required protection as determined by the Department. This is not an automatic exemption for every nonprofit or private operator. Confirm eligibility and evidence with the Department before relying on such an arrangement.

Compare the policy terms as well as Tennessee’s minimum limits

Ask how the proposal responds to a premises injury, a supervision allegation and an abuse or molestation allegation. Check professional-services exclusions, insured persons and any separate limits. The rule allows abuse coverage as a separate policy or part of broader coverage; the important question is what the policy actually provides, not whether the quote uses a particular package name.

A per-occurrence limit and an aggregate limit are different. Ask how multiple claims could affect the remaining protection and whether defense costs reduce a relevant limit. Send any higher limits or additional-insured requirements from your lease to the provider, and request comparable higher-limit options with the same activities and deductibles.

How much does Tennessee 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.

Have each proposal identify the required liability, abuse-related and medical-payment coverages, plus vehicle coverage if applicable. Comparing a liability-only premium with a complete childcare proposal can make the incomplete quote look cheaper. Use the same enrollment, age groups, staff and services for each provider’s application.

Home childcare and property coverage

The Tennessee rule explicitly says a standard homeowner’s policy is insufficient for the childcare coverage requirements. Tell the residential insurer about the business and ask whether an endorsement or separate childcare policy can provide the required protection. Have the provider identify the actual limits and exclusions rather than relying on a statement that business use is permitted.

For a center, separate landlord-owned property from your furniture, supplies and improvements. Ask what losses are insured and which locations are covered. If adding business-income protection, confirm the covered causes of loss, waiting period and exclusions; not every interruption or licensing-related closure triggers payment.

Tennessee workers’ compensation and staffing changes

The Tennessee Bureau of Workers’ Compensation’s non-construction guidance requires coverage for employers with five or more employees, subject to applicable exceptions. Part-time employees count. Have the provider review your entity, owners, worker roles and payroll before hiring or changing the roster.

If a previously covered employer drops below five employees, coverage does not simply end with the headcount change. The Bureau’s guidance requires Form I-3 and acceptance of the withdrawal before the employer is exempt from the requirement. Coordinate that process with the provider; do not cancel a policy merely because an employee leaves.

Transportation and renewal checks

For pickup routes or field trips, disclose vehicle ownership, drivers, seating and trip patterns. Confirm the applicable combined single limit and child medical-payments coverage. Ask separately about staff-owned vehicles used for business and whether off-site childcare activities are included. The facility’s general liability certificate does not answer every vehicle question.

Before switching insurers, compare effective dates and the reporting conditions for each coverage component. If professional or abuse-related coverage is claims-made, ask about continuity and any retroactive date. Arrange replacement documents before the existing policy ends, and check that the declarations reflect the actual licensed operator and locations.

Prepare a Tennessee daycare insurance quote request

• 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 Tennessee homes and centers have the same general liability minimum?

No. Family and group homes require $300,000 per occurrence and aggregate; centers and drop-in centers require $500,000 per occurrence and aggregate. The rule separately requires abuse and molestation coverage and medical payments, plus applicable transport coverage.

Can I meet Tennessee’s requirements with a standard homeowner’s policy?

No. The licensure rule states that a standard homeowner’s policy is insufficient. Ask the provider to identify an endorsement or separate policy that supplies the required childcare coverage, and confirm the documentation with your licensing contact.

What should I ask about abuse and molestation insurance?

Confirm at least $100,000 per occurrence and $300,000 aggregate, then review insured persons, exclusions, defense costs and reporting conditions. The coverage may be separate or included in a broader policy; obtain the documents showing what is actually provided.

Can I cancel workers’ compensation when staffing drops below five?

Do not cancel solely because the headcount falls. Tennessee’s guidance requires a Form I-3 withdrawal and Bureau acceptance before the employer is exempt. Review the current roster and withdrawal process with the provider first.

Related guides

Daycare Insurance · Tennessee / Daycare

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