Do you run a childcare center in the United Kingdom? You need insurance for childminding as one of the legal requirements for running the business.
Many childcare providers in the UK are not sure of what insurance for childminding means or what it covers. In this article, you will find out more about that and every other thing you need to know.
What Insurance do Childminders Need?
Childminders in the UK need the public liability insurance. According to Childcare.co.uk, the EYFS requires childcare providers to have the public liability insurance. As per the requirement, the policy providers coverage both for the policyholder (childcare center) and the kids under the care.
What is Public Liability Insurance?
Public liability insurance is a type of business insurance that covers claims by the general public against a business. It also covers the business from injuries, death and medical bills that are charged the business for damages done to third-parties.
NurseryWorld affirms that public liability insurance is a must for childcare centers in the UK. With the policy, childcare providers in the UK would be able to provide adequate protection for the center, the children being cared for and the parents of these kids.
Public Liability Insurance for Childminding Business: What Does It Cover?
You now know that public liability insurance is the most important insurance for childcare providers in the UK.
What does the insurance cover and why is it important you get it?
1. Personal Injury
Did the child under your care or the child’s parents suffer personal injury while on the property? It could be as simple as making a slip and as serious as having a child causing harm to another child.
In both cases, bodily injury has been inflicted and your childcare center is liable for a suit. You may be able to cover the cost of treating the injured and covering the legal fees if you are charged to a law court.
2. Property Damage
Damages to the property of a parent or a visitor to your childcare center can be sued for. With the insurance for childminding, you would be able to repair or replace the property.
3. Legal Costs
Insurance for childcare business in the UK also covers the legal costs of representing the business in a law court.
This is activated only if the third-party sued your business to a law court as a way of seeking redress for bodily injury or property damage.
Beyond Public Liability Insurance: Additional Insurance for Childcare Center
Public Liability Insurance (PLI) is the most prominent insurance policy for childcare centers in the UK.
However, it is not the only legal requirement you will find after registering with Ofsted. Here are some of the additional insurance policies you need to purchase for your childminding business:
1. Home & Contents Insurance
This type of insurance for childminders is required if you run the center from home. Before then, you must have notified your property owner/landlord or the mortgage company (if you took a loan) that you now run a home-based childcare center.
After then, you must purchase the home and contents insurance to cover accidental damages caused by either the minded children or their families.
2. Professional Indemnity Insurance
This is a type of liability insurance for childminding business owners who make professional mistakes. It could be giving wrong advice to the parents of the minded children.
Basically, the professional indemnity insurance covers the childcare center against lawsuits arising from the unprofessionalism of the owner. Most times, the lawsuit is filed if the claimant or third-party suffered financial loss because of the childcare center owner’s unprofessionalism.
3. Vehicle Insurance
Getting vehicle, car or motor insurance is in line with the requirement 3.66 of the Early Years Foundation Stage (EYFS). Motor insurance covers the vehicles or cars used in conveying or transporting minded children. The major transportation options are when the vehicle is used to:
- Transport the minded children for picnics.
- Move the minded children to and from the childcare center.
The motor insurance policy also covers the drivers of the insured vehicles.
Getting the Business Class 1 insurance as an add-on is important if you intend using the vehicle for business purposes.
4. Employers Liability Insurance
In conventional business setting, the Employers Liability Insurance (ELI) is known as Worker’s Compensation Insurance.
ELI is a type of childminding insurance in the UK that covers assistant childminders. As a childcare center owner, you need to get it to cover the childminders who work for you.
Typically, you need to provide the Employer Reference Number (ERN) if you pay the assistant childminders above £116 per week.
How Much is Insurance for Childminders in the UK?
The cost of getting insurance for childcare providers in the UK varies by the provider. Michael Morton appears to have one of the most affordable rates. According to the information on the website, the insurer’s starting price is £59.50 per year. This also covers the service fee of £1 and the Insurance Premium Tax.
You can also look around to shop for more deals for your childcare center in the UK.
How to Find the Best Deals on Insurance for Childminding in the UK
Purchasing insurance for childminding is beyond the affordability. Here are extra tips on how to get the best insurance for childcare center in the UK:
Find out Where the Insurance Covers
The insurance for childminding business typically covers childcare centers in the core UK countries, including England, Northern Ireland, Wales and Scotland.
Which Centers are Covered?
Childcare centers are commonly covered with the insurance for childminding. However, your insurance provider can also cover after-school-clubs and nurseries.
Full Policy Wording
Your insurance for childminding should provide full policy wording as it helps you to learn the Terms and Conditions (T&Cs). The full policy wording also covers the exclusions or the items not covered in the childminding insurance.
One of the effective ways to get the best insurance for childminding is to compare your options. Aside from checking with Michael Morton, consider checking other childminding insurance in the UK.
By comparing their quotations, you will know what they cover and how much it would cost to get the insurance from them.
Conclusion: Public Liability Insurance is Needed for Childminding in the UK
Purchasing public liability insurance is the first step to protecting your childcare center from claims due to third-party damages. In addition, buy many other insurance policies, such as Employers Liability Insurance to cover your employees, and Home & Contents insurance to cover the building.