Linh runs a licensed preschool in Bothell for about forty children, ages three to five, with seven teachers and aides. She opened it in a converted church building and bought a package policy through the agent who wrote her home insurance.
She came to us because a parent, a lawyer, asked a pointed question at an open house: what does your insurance do if a staff member is accused of hurting a child?
What she asked for
An honest answer to the parent's question.
What the review found
Abuse and molestation was excluded. Her general liability policy covered a child falling off playground equipment. It carried a standard exclusion for abuse or molestation claims. For a childcare provider, an allegation of that kind, true or not, is one of the most serious claims possible, and her policy would not have defended it.
The field trip van was on her personal auto policy. The school owned a twelve-passenger van titled in Linh's name and insured on her personal policy. Transporting enrolled children is business use, and a personal carrier can dispute a claim when the use was never disclosed.
Staff turnover, no EPLI. Childcare has high turnover and strict licensing rules around staff conduct. When a teacher is let go for a licensing issue, a wrongful termination or discrimination claim can follow.
What we put in place
We moved the preschool to a carrier that specializes in childcare. The new general liability includes abuse and molestation coverage with its own limit, covering the school and its staff for defense and settlements, along with professional liability for supervision and care. The carrier's application asked about background checks, supervision ratios, and two-adult policies, and Linh's existing practices qualified her for their better program.
The van moved to a commercial auto policy in the school's name, with higher liability limits appropriate for transporting children and medical payments coverage for every passenger. Two teachers who occasionally drive their own cars for errands are covered under hired and non-owned auto.
We added employment practices liability and connected Linh with the carrier's HR resources for documenting performance issues.
Washington's licensing rules also address liability coverage for child care providers, and parents increasingly ask. Linh now has a one-page summary she can hand to families that answers the lawyer's question directly.
Why it mattered
It gave her a real answer at the next open house, and it changed enrollment conversations. More importantly, the exposure that could close a childcare business overnight is now insured with a carrier that knows how to defend it.
If you run a preschool or childcare center
- Check your liability policy for an abuse and molestation exclusion
- Put any vehicle that transports children on a commercial auto policy
- Document background checks and supervision practices; carriers price them
- Be ready to explain your coverage to parents in plain language
A free policy review is the fastest way to find out whether your policy answers the question parents are starting to ask.