For more on this part of the insurance industry:
1. visit our education insurance page for a look at all products in this sector
2. or focus in on all of the daycare and childcare insurance products available on IB Markets!
Daycare and childcare insurance protects childcare providers from risks associated with caring for children. These services include long day care, family day care, and occasional care. The insurance covers:
Childcare insurance is also a legal requirement under the National Quality Framework (NQF) for services like kindergartens and outside school hours care.
Limited childcare services in the 1960s reflected a time when working mothers faced major challenges. Today, with more men also participating in caregiving roles, daycare and childcare insurance supports families by ensuring quality care and safeguarding staff and facilities.
The childcare sector is transforming with increased use of digital tools for management and parent communication. Higher demand for flexible services, driven by dual-income households, has expanded operational challenges. However, these advancements also introduce new threats to consider, including:
rising child population: increased demand for childcare facilities and staff affects insurance costs and coverage as Australia’s child population grows
reinsurance challenges: a failed legislative proposal highlights financial and regulatory risks tied to childcare reinsurance pools
holistic child development: diverse activities for child growth raise liability and complicate insurance requirements for providers
Childcare providers need to keep up with changing rules, as government support can affect their daycare and childcare insurance needs. Brokers should adjust policies to help clients stay covered.
Childcare insurance costs in Australia vary depending on factors like the type of care, size of the service, and location. Here’s an overview:
family day care educators: premiums typically range from $480 to $500 annually
larger childcare centres: costs are higher due to more staff, children, and facilities needing coverage
additional factors: coverage needs, risk levels, and optional extras can affect the price
To get the best price and coverage, childcare providers should compare quotes and consult insurance specialists for tailored policies.
Nurseries in Australia need several key policies under daycare and childcare insurance to protect against hazards:
workers' compensation insurance: covers staff for work-related injuries or illnesses
professional indemnity insurance: safeguards against claims of mistakes or negligence
property and contents insurance: covers damage or loss to the nursery’s building and items
business interruption insurance: helps recover lost income from disruptions caused by insured events
Public Liability Insurance is mandatory under the National Quality Framework (NQF), requiring a minimum cover of $10 million to protect against injury or property damage claims.
While plants can brighten a nursery, make sure they are non-toxic and safe for children. In case of incidents, childcare and daycare insurance can help, like when:
a child has an allergic reaction to a plant, and public liability insurance covers the incident
a storm damages outdoor nursery plants, and property insurance helps replace them
Consult the Australian Poison Information Centre for advice on safe plant choices.
To keep the nursery safe for children, avoid the following:
unsafe sleep accessories: items like bumpers, pillows, toys, and loose bedding in cots can cause suffocation risk
hazardous materials: keep cleaning products, medications, and small objects out of children's reach
unsecured furniture: make sure furniture is secure and cannot tip over
Following Australian daycare and childcare insurance safety guidelines helps create a safe and secure environment for children.
This insurance is essential for various childcare providers in Australia, including:
Another one that needs daycare and childcare insurance is vacation care services, which provide care for school-aged children during holiday periods.
While infants are automatically covered by Medicare once enrolled, adding them to a family health insurance plan offers additional benefits. Families using daycare services should also ensure their daycare and childcare insurance covers potential incidents involving infants.
