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Washington puts a number on it: child care centers must carry liability insurance of at least $100,000 per occurrence — and family home providers who skip coverage must say so in writing to every parent. RCW 43.216.700 makes insurance a condition centers prove at licensure, at renewal and at inspection; the family-home opt-out exists, but only with a written notice of uninsured status on file for every enrolled family. And workers’ comp here comes only from the L&I state fund.
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What Washington Actually Requires
| Coverage | Washington requirement |
|---|---|
| Liability insurance (centers) | Required at licensure, renewal and inspection — limits per RCW 48.88.050: at least $100,000 per occurrence (RCW 43.216.700) |
| Family home providers | May opt out ONLY by giving written notice of uninsured status to every enrolled parent and keeping a copy on file |
| If coverage lapses | Notify DCYF, post visible notice at the facility, and give parents written notice within 30 days |
| Workers’ compensation | L&I state fund ONLY, from the first employee — Washington is monopolistic; premiums computed on hours worked |
Centers Prove It Three Times
Washington’s design leaves no unverified stretch: the $100,000-per-occurrence policy is checked when you’re licensed, when you renew, and when an inspector visits. The lapse protocol is equally explicit — the department, a posted notice, and every parent in writing within thirty days. A quietly expired policy is three separate violations before the first claim.
The Opt-Out Is a Disclosure, Not an Escape
Family home providers can lawfully run uninsured — but only after telling every enrolled family so in writing, with copies kept for the licensor. In a market where parents compare providers, a signed “we carry no liability insurance” notice is its own competitive penalty, which is why most family homes carry the policy the law lets them skip.
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 — in Washington, only from the L&I state fund.
- 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 Washington daycare?
For child care centers, yes — RCW 43.216.700 requires liability insurance at licensure, renewal and inspection, at the limits in RCW 48.88.050: at least $100,000 per occurrence. Family home providers may opt out only by giving written notice of their uninsured status to every enrolled parent and keeping copies on file.
Can a Washington daycare buy workers’ comp from a private insurer?
No. Washington is a monopolistic workers’-compensation state — coverage comes only from the Department of Labor & Industries state fund, required from the first employee, with premiums computed on hours worked. Private carriers write the rest of the stack: general liability, property, and commercial auto.
Comparing states? See daycare insurance requirements in every state, or the full guide to starting a daycare in Washington.
Sources
| Source | What it confirms |
|---|---|
| RCW 43.216.700 | Center requirement, family-home opt-out with written notice, lapse protocol |
| RCW 48.88.050 | The $100,000-per-occurrence limit |
| WA Dept. of Labor & Industries | The monopolistic WC state fund |
