Daycare and Child Care Insurance in Washington and Idaho

Washington requires licensed child care centers to carry day care insurance and show proof at licensing, renewal, and inspection; licensed family homes may opt out but must tell parents in writing. Idaho requires a license for seven or more unrelated children and has no state insurance requirement. Either way, child care needs general and professional liability, abuse and molestation coverage, and property coverage.

By Trella Commercial · Updated October 5, 2026

The short version

  • Washington centers must be insured. Licensed child care centers must provide proof of day care insurance, or self-insurance, at licensing, renewal, and inspection (RCW 43.216.700).
  • Washington family homes can opt out of the insurance requirement, but must give parents written notice of their insurance status.
  • Lapses must be reported. Washington licensees must notify the Department of Children, Youth, and Families within 30 days of a lapse and notify parents.
  • Idaho licenses at seven children. A daycare facility caring for seven or more unrelated children needs a license; family homes with four or more need criminal history checks. We found no Idaho insurance requirement.
  • Abuse and molestation coverage is essential, and often excluded or limited in standard policies.

Licensing and insurance rules

RuleWashingtonIdaho
Who is licensedChild care centers, family homes, and outdoor nature-based programs, by DCYFDaycare facilities caring for 7 or more unrelated children need a license; homes with 4 to 6 need criminal history checks (Idaho Code 39-1102, 39-1114)
InsuranceCenters must carry day care insurance or be self-insured; family homes may opt out with written notice to parents (RCW 43.216.700)None found in state law; cities may add rules
LapseNotify DCYF within 30 days and give parents written notice; post insurance statusNot applicable
Operating without a licenseProhibitedA misdemeanor (Idaho Code 39-1115)

Coverage for a child care business

CoverageWhat it handles
General liabilityInjuries to children and visitors on site and on outings
Abuse and molestationAllegations against staff or others; check limits and whether defense is inside them
Professional liabilityClaims about supervision, care, and developmental services
Business owners policyThe building or space, equipment, and lost income
Employment practicesClaims from staff in a high-turnover field
Hired and non-owned auto, or commercial autoField trips and transportation
Workers compL&I in Washington; Idaho workers comp from the first employee

For a related story, see the preschool story.

Common questions

Is insurance required for daycares in Washington?

For licensed child care centers, yes: they must show proof of day care insurance or self-insurance at licensing, renewal, and inspection. Licensed family homes may opt out but must tell parents in writing.

Do Idaho daycares need insurance?

We found no Idaho state insurance requirement. Idaho requires a license for facilities caring for seven or more unrelated children. Insurance is still strongly recommended, and landlords and some cities may require it.

Does daycare liability insurance cover abuse allegations?

Not always. Many general liability policies exclude or limit abuse and molestation claims. Child care providers should buy that coverage specifically.

What happens if a Washington daycare's insurance lapses?

The licensee must notify the Department of Children, Youth, and Families within 30 days, post a notice, and give parents written notice.

Sources

This page is general information. Laws were checked against primary sources in October 2026; confirm current requirements with DCYF or the Idaho Department of Health and Welfare.

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