While blessed with many rewards, the child care profession poses many risks, too. A lot of investment goes in a child care business. So, it just makes good sense to protect it.

Most standard insurance policies supply limited coverage on accidents that occur. Some insurance companies will cover you by adding to your homeowner's or renter's insurance. They charge an extra fee for this coverage. You can also buy a policy to cover just liability for your daycare business.

Following are some tips that can help you decide your insurance policies:

• It is important that you obtain a policy relevant to your business. A lot of insurance companies try to sell you irrelevant policies or policies that you don't require. Be careful and choose only the policies appropriate for your childcare business.

• Ask a lot of questions to your insurance agent so that you get a clear idea about the policies for home day care or childcare centers.

• Just like any other insurance policy, make sure that you read the small print and scrutinize every minor detail mentioned on paper. In the event you need to utilize the policy, you must be able to do so without any obstruction.

• When selecting a Liability policy always check for "exclusions", or things the company will not cover.

• Don't be coerced into signing a policy that really isn't what you wanted or one that doesn't suit the needs of your business. Most insurance agents work on commission basis, which means the amount of salary they earn depends on the number of insurance policies that they sell. For this reason, they will use any tactic to sell you their policy. However, you must be very careful and analyze your options before making any decision.

• Even if you have liability insurance, it is important to always take preventive safety measures. It is the responsibility of a caregiver to provide a safe environment with good supervision so that children do not get hurt.

Following are some useful links to some insurance related websites:

• AFDS.com
• RNI: the National Center for the Business of Family Child Care
• Morgan&Associates Child Care Insurance Brokerage
• Morton Michel - Childcare Insurance Specialists
• NAEYC Online

Copyright 2001, 2004. All rights reserved. Any reproduction of this article in whole or in part without written or verbal permission is strictly prohibited. For information about reprinting this article, contact the copyright owner: Vanessa Rasmussen, Ph.D, Starting a Day Care Center, http://www.startingadaycarecenter.com.