Attention Home Childcare Agencies:

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Make sure your Providers understand the importance of disclosing to their home insurance that they are operating a home childcare business.

Even if they have been added to the agency insurance or a separate commercial policy for the home childcare.

As an insurance broker who specializes in the childcare industry, finding viable solutions for the insurance challenges faced by regulated home childcare providers and agencies in Ontario can be frustrating. As an agency, working to onboard new providers that end up with insurance road blocks must be very discouraging. The good news is, Magenta may be able to help! 

Knowledge is Key

Our goal is to arm agencies with information to share with their providers and to help alleviate the panic that occurs when it’s discovered they may not have the proper insurance in place. It is imperative that your providers disclose to their home insurance provider that they are operating a childcare business out of their home – but in doing so, they may run into some insurance issues. 

Here are a few of the issues we have recently come across and your providers may have as well:

  • The policy could be cancelled. Some home insurance companies will not insure the home even if the childcare business is insured under the agencies policy or if a separate commercial policy has been purchased. Their fear is that they will end up in court with the commercial insurer fighting over which policy will respond
  • The company may provide coverage but limit/restrict the amount of children. Some home insurance companies will agree to extend liability for a flat charge per child but restrict the number of to 3, 4 or 5 children, which is not the solution your provider was hoping for if they planned on taking more children. 

Although challenges may arise in notifying their insurance providers, not doing so, could result in their home insurance not responding to a loss even if it had nothing to do with the childcare business! This occurred recently in Alberta, at a home where the owner had a dog grooming business that was insured elsewhere. Because the homeowner didn’t disclose the business to their home insurance provider, they now face not having any insurance or income from their business.

If your provider has challenges after speaking with their home insurance company, have them reach out to us directly, as we may have some solutions for them in our personal insurance department. 

Insurance Coverage for Regulated Home Childcare Providers

As you know, Magenta Insurance Professionals has an insurance program specifically developed for Regulated Home Childcare Providers that are under contract with a licensing agency. 

An online platform is available where providers can purchase a commercial general liability policy with limits ranging from $2,000,000 – $5,000,000. Along with the liability coverage, the following coverages are also available to your providers:

  • Abuse Coverage – $100,000 limit
  • Content Coverage – $10,000 limit
  • Business Interruption

Policies can be purchased here!  

Thank you for referring so many of your prospective providers to us! 

Purchasing this product does not alleviate their potential home insurance challenges and we always encourage clients to check with their home insurance provider before purchasing the commercial insurance online.

Insurance for Licensing Agencies – NEW!

Magenta Insurance is now able to provide licensing agencies with insurance for their agency. As an agency, we would highly recommend you have Professional Liability Insurance to protect yourself and your agency.    

Professional Liability also known as Errors & Omissions is quite possibly your biggest exposure as an agency. The failure to advise or vet your providers properly could cause financial hardship to the agency, and therefore the need for insurance. 

Let’s talk…and make sure you are properly covered!

We look forward to continuing to work with you and advocate for quality childcare in Ontario.