Do I Need Insurance for My Home Daycare in California?

Does California require insurance for a licensed family child care home?

California licenses two kinds of home daycare through the Department of Social Services. A Small Family Child Care Home cares for up to eight children, and a Large Family Child Care Home cares for up to fourteen with a qualified assistant. Both are run out of the provider's own residence, and both fall under the same insurance rule in the Health and Safety Code.

The law gives a licensed home three ways to satisfy the requirement. You may carry liability insurance of at least one hundred thousand dollars per occurrence and three hundred thousand dollars in total annual aggregate, or you may post a bond of three hundred thousand dollars, or you may keep on file a signed affidavit from every enrolled parent stating they were told the home does not carry liability insurance or a bond. One of those three has to be in place, and the choice is yours to make.

There is one more piece for providers who rent or who live under a homeowners association. If you carry insurance or a bond and you operate in leased premises or a community governed by an association, you have to name the property owner or the association as an additional insured when they ask for it in writing. That request is routine, and adding them is usually quick and often included at no extra charge.

Why won't my homeowners insurance cover my home daycare?

It feels natural to assume the homeowners or renters policy on your house already covers everything that happens inside it. In practice these policies are written for personal living, and almost all of them exclude or sharply limit business activity conducted from the home. A licensed daycare is a business, so a claim tied to a child in your care is the kind of thing a home policy is built to leave out.

That gap matters because the everyday risks of watching young children are exactly the ones a personal policy will not answer. A toddler who trips and needs stitches, a child who wanders to a neighbor's pool, a parent who says their child was hurt on your watch, these are business claims. If your only coverage is the homeowners policy, the cost of defending and settling would likely land on you personally rather than on your carrier.

Signing parent affidavits does not close that gap either. The affidavit is a legal option that lets you operate without insurance, but it does nothing to pay for an injury. It simply tells parents that if something happens, there is no policy or bond behind the home. Many providers are surprised to learn that the box they checked at licensing left the money and the house behind the daycare fully exposed.

What coverage does a home daycare actually need beyond the state minimum?

The one hundred thousand per occurrence figure in the law is a floor, not a target. A single serious injury to a child can run well past that number once medical bills and a defense are added up, so most providers who choose to insure carry higher limits than the minimum the state names. A home daycare policy is built for this work and can be written well above the floor without a large jump in price.

A few coverages do the real work. General and professional liability responds when a child or a visiting parent is hurt or a claim is made about your care. Abuse and molestation coverage is a standard part of a child care policy and is often required by the same parents and agencies who ask about your license, so it belongs in the conversation even though it is uncomfortable to raise. Accident medical payments cover small injury bills no matter who was at fault, which keeps a scraped knee from turning into a claim.

Two more pieces round out a home program. Business personal property covers the cribs, gates, toys, and supplies you use every day, which your home policy treats as household goods rather than business equipment. And the additional insured endorsement, the one the law already contemplates for landlords and associations, is the document a property owner will ask to see before they will let a daycare operate on the premises.

How much does home daycare insurance cost, and what about the affidavit option?

For a home program the numbers are smaller than most providers expect. A family child care policy commonly runs somewhere around four hundred to twelve hundred dollars a year, and where you land depends on how many children you care for, the limits you choose, and whether you add abuse and molestation and higher liability. A small home with a handful of children sits near the bottom, and a large home near capacity with higher limits sits higher.

The affidavit route costs nothing, and that is exactly why it deserves a second look. It is legal, and for a provider who cannot yet afford a policy it keeps the license valid. What it does not do is protect you. If a child is hurt, the affidavit only proves that parents were told there was no coverage, and the entire cost of that claim would fall on your savings and your home. For most providers the peace of a real policy is worth the modest premium.

There is also a middle question worth asking, which is whether a bond or a policy fits your situation better. A bond satisfies the license but works differently from insurance and does not defend you the way a liability policy does. A short conversation about how many children you watch and whether you own or rent will usually make the right path clear before you commit to any one option.

Get a free home daycare insurance quote, in English or Vietnamese

Most home providers meet this decision at the licensing table, under time pressure, with three boxes in front of them and little explanation of what each one really means. It is a calmer choice when someone has looked at your home, your license type, and how many children you care for first, because the right answer depends on all three.

As an independent brokerage in Fountain Valley, we work with many carriers, so we can match a family child care policy to your program, write it above the state floor where that makes sense, add abuse and molestation and accident medical, and name your landlord or association as additional insured if they have asked. We serve home daycare providers across Fountain Valley, Garden Grove, Westminster, and Santa Ana, and we explain each piece in plain language.

If you are getting licensed, renewing, or a landlord has asked you for proof of insurance, send us the requirement and ask for a free quote, in English or Vietnamese. We can compare the insurance, bond, and affidavit paths for your situation, show you what a policy would cost, and get your certificate ready so a paperwork request never stands between you and the children in your care.

Frequently asked questions

Does California require a licensed family child care home to carry insurance?

Not exactly. The law gives a licensed home three ways to meet the requirement: carry liability insurance of at least one hundred thousand dollars per occurrence and three hundred thousand aggregate, post a three hundred thousand dollar bond, or keep a signed affidavit on file from every enrolled parent stating the home has no insurance or bond. One of the three must be in place.

Will my homeowners policy cover my home daycare?

Almost never. Homeowners and renters policies are written for personal living and exclude or sharply limit business activity from the home. A licensed daycare is a business, so a claim tied to a child in your care would likely be denied. You generally need a separate family child care policy written for this work.

What is the difference between a Small and a Large Family Child Care Home?

A Small Family Child Care Home cares for up to eight children, and a Large Family Child Care Home cares for up to fourteen with a qualified assistant. Both operate out of the provider's residence and both fall under the same insurance rule, though a larger home with more children usually carries higher limits.

How much does home daycare insurance cost in California?

A family child care policy commonly runs somewhere around four hundred to twelve hundred dollars a year. How many children you care for, the liability limits you choose, and whether you add abuse and molestation and higher limits all move the price, so a small home pays less than a large home near capacity.

Is the parent affidavit a good substitute for insurance?

It is legal and it costs nothing, which keeps a license valid when a policy is not yet affordable. What it does not do is pay for anything. If a child is hurt, the affidavit only shows that parents were told there was no coverage, and the cost of the claim would fall on your savings and your home. Most providers prefer a real policy for that reason.

Do I need to name my landlord on the policy?

If you carry insurance or a bond and you rent, or you live in a community governed by a homeowners association, California lets the property owner or association ask in writing to be named as an additional insured. Adding them is routine and usually quick, and we can issue the certificate showing it, in English or Vietnamese.