Daycare and Child Care Insurance in Texas
We can help home-based child-care providers and licensed centers across Texas review their insurance options. If you are opening, renewing, or just learned that a homeowners policy may not respond to a daycare-related claim, this page tells you what Texas requires and what to have ready before you call.
Homeowners policiesA standard homeowners policy generally does not cover liability arising from operating a home daycare. Coverage depends on the policy wording and any applicable business or home-daycare endorsements. TDI's consumer guidance says homeowners insurance will not cover losses related to a listed home daycare. Read about homeowners insurance
Do I need insurance to run a daycare in Texas?
Texas law generally requires licensed or registered child-care operations and listed family homes to maintain at least $100,000 of liability insurance for each occurrence of negligence, covering injury to a child while on the premises or in the operation's care.
The statutory minimum decreased from $300,000 to $100,000 effective January 1, 2026. It is a per-occurrence amount, not a per-child amount.
Texas law provides a notice process when required coverage cannot be secured for financial reasons, no willing underwriter is available, or the policy limits have been exhausted. The operation must provide timely written notice to each affected parent or guardian and to HHSC. Following the notice process does not protect the operation from liability for negligence.
Permit and operation type matter. Licensed child-care centers, licensed child-care homes, registered child-care homes, and listed family homes are treated differently, and certain operation types are not subject to the same liability-insurance requirement. HHSC's handbook lists certified state-operated programs, small employer-based programs, shelter care programs, and listed family homes caring only for related children as not required to carry it. Bring the exact operation or permit type shown by HHSC to the review.
TDI: Do I need insurance to run a daycare in my home? (tdi.texas.gov) (opens in a new tab) HHSC: types of child care permits and operation definitions, handbook 2110.1 (hhs.texas.gov) (opens in a new tab) HHSC: operation types not required to carry liability insurance, handbook 4600 (hhs.texas.gov) (opens in a new tab)
Texas Human Resources Code §§42.049 and 42.0495, as amended by HB 2789, effective January 1, 2026. HHSC Child Care Regulation Handbook §2110.1 for operation definitions.
If you care for children in your home
Texas may classify a compensated provider caring for up to three unrelated children in the caregiver's own home as a listed family home. HHSC also applies schedule rules, at least four hours a day on a regular basis, and a total cap of 12 children including related children. Registered and licensed child-care homes may care for more children and are subject to additional requirements. Confirm the operation type shown on your permit or listing. Operating child care from a residence creates business-related exposures that a standard homeowners policy may exclude or limit.
General liability
General liability may address claims such as a child being injured on the premises or a parent falling at the property. The policy should also be reviewed to confirm that it meets the applicable child-care requirement and covers the operation being insured. General liability insurance
Abuse and molestation
An allegation against anyone connected to the operation, including a family member or a volunteer. Ask whether abuse or molestation liability is included, who qualifies as an insured, what conduct is excluded, how defense costs are handled, and what limits apply.
Accident medical
Coverage that may pay specified medical expenses following a covered accident, subject to the policy's limits and terms and without necessarily requiring a final negligence determination.
Professional liability
Professional liability may address certain claims arising from the care itself, such as an alleged medication error or a lapse in supervision in your home. TDI identifies child care as a type of business that may need professional liability in addition to general liability. Coverage structure varies by carrier and form, so ask whether it is included in the child-care policy or provided separately.
Do not assume any of these coverages is included. Availability, exclusions, sublimits, and policy structure vary by carrier and form.
If you run a center, preschool, or before- and after-school program
Centers and larger programs often add exposures involving a separate facility, employees and volunteers, transportation, higher enrollment, and more extensive licensing requirements. Each needs to be reviewed separately. The permit matters more than the name on the sign: licensed centers, preschools, Montessori schools, church-run programs, franchised locations, and before- and after-school programs land in different places in the HHSC permit structure, and some are exempt from licensing entirely. An exemption changes the paperwork. It does not change what a family can allege after an injury. Bring the permit, or the exemption, and we will start from what HHSC shows.
The building and what is in it
Owned or leased, playground equipment, cribs and cots, kitchen, the outdoor fence.
Staff and volunteers
How many, whether any are leased, the minimum age of volunteers, and background checks. When employees are involved, workers' compensation is a separate policy and a separate decision. Texas does not require most private employers to carry it, but contracts and specific circumstances can. Workers' compensation
Transportation
Tell us about any transportation connected to the operation, including an owned van, employee vehicles, hired or rented vehicles, and transportation for field trips. Depending on how vehicles are owned and used, the review may involve commercial auto, hired and non-owned auto, or both. Commercial auto insurance
Licensing
Have your permit number, issue date, licensed capacity, ratios, and available licensing history ready. Insurers may request this information during underwriting. A school can be exempt for its older classroom and licensed for its infant room at the same time, so bring what HHSC shows for each part of the operation.
Professional liability
Professional liability may address certain claims arising from the care or professional services your staff provide, such as an alleged medication error or a lapse in supervision. TDI identifies child care as a type of business that may need professional liability in addition to general liability. Coverage structure varies by carrier and form, so ask whether it is included in the child-care policy or provided separately.
Franchise requirements
A franchise agreement may set its own insurance requirements, including minimum limits, additional insured status for the franchisor, and a waiver of subrogation. Those terms sit in the agreement rather than in state rules. Bring it and we will read its insurance section against the quote.
Three additional coverage questions often come up for centers. Business income may help replace lost income and continuing expenses after a covered shutdown. A commercial umbrella may provide limits above certain underlying liability policies. Directors and officers liability may matter when a nonprofit board governs the center. These coverages may be included, endorsed, or written separately depending on the carrier and policy structure, and not every center needs all three.
Property, workers' compensation, auto, and liability coverage must each be confirmed in the actual policies. One policy should not be assumed to include another.
What changes the cost
Premiums vary materially based on the type of operation, enrollment, payroll, property, transportation, coverage limits, claims history, licensing history, and available insurance markets, so a specific review is more useful than a generic online range.
- How many children you care for, and their ages
- Home or center, and whether you own the building
- Hours, and whether anyone stays overnight
- Staff, payroll, and volunteers
- Whether you transport children
- A pool, a trampoline, or animals on the property
- Claims history and licensing history
- The limits and deductibles you choose
What to gather before you call
You do not need all of this to start. Having it saves a second call.
- Your exact HHSC operation and permit type, for example a licensed center, licensed home, registered home, or listed family home, along with the permit number and issue date
- Licensed capacity and your child-to-adult ratios
- Average daily attendance
- The type of building, and whether you own or lease it
- Hours of operation, and any care after 8 p.m.
- Number of employees, any leased staff, and whether you use volunteers
- Whether you transport children, and the auto policy on those vehicles
- Any complaint, investigation, or licensing action, resolved or not
- Your current policies and, if you have them, loss runs
Ready when you are. Start a Business Quote Call 936-348-2688
One office. Access to more than one insurance market.
We are an independent agency based in Madisonville and are not limited to one insurer. After reviewing the operation, we can approach available child-care insurance markets and compare the terms they offer, subject to underwriting. The information above reflects common underwriting questions, which is why we gather it early.
We will not promise a carrier, a price, or an outcome on this page. We review the relevant permit details and available licensing information as part of preparing the submission for appropriate insurance markets.
A licensed insurance agent reviews the operation first. Then we quote.
Start a Business quote or call the office. A licensed insurance agent reviews the operation before any coverage or carrier recommendation. Most of that review is the list above.
Fifth generation. Same town since 1920.
5.0 40 reviews as of July 2026 Read our Google reviews
Common questions
Is daycare insurance required in Texas?
Texas law generally requires licensed or registered child-care operations and listed family homes to maintain at least $100,000 of liability insurance for each occurrence of negligence, covering injury to a child while on the premises or in the operation's care. If the required coverage cannot be secured or its limits have been exhausted, Texas law provides a written-notice process. That process does not eliminate the operation's potential liability for negligence.
Will my homeowners policy cover a home daycare?
A standard homeowners policy generally does not cover liability arising from operating a home daycare. Coverage depends on the policy wording and any applicable business or home-daycare endorsements. Ask us to read your policy before you assume either way.
What does abuse and molestation coverage do?
Abuse or molestation liability coverage may provide defense and liability protection for certain covered allegations involving people connected to the operation. Who and what is covered varies by policy, carrier, exclusions, and limits.
How much does daycare insurance cost in Texas?
Premiums vary materially based on the type of operation, enrollment, payroll, property, transportation, coverage limits, claims history, licensing history, and available insurance markets, so a specific review is more useful than a generic online range.
Can a parent waiver replace insurance?
No. A parent waiver does not replace liability insurance or satisfy the statutory insurance requirement. If required coverage cannot be secured for the reasons stated in Texas law, or the policy limits have been exhausted, the operation must follow the prescribed written-notice process. That notice is not insurance and does not eliminate potential liability for negligence. Questions about whether a particular waiver is enforceable should be directed to legal counsel.
Is the $100,000 Texas minimum enough coverage?
Not necessarily. The $100,000 per occurrence stated in Texas law is a minimum, not a recommendation for every operation. Two core general-liability limits to review are the occurrence limit, the most the policy may pay for one covered occurrence, and the aggregate limit, the most it may pay for covered claims during the policy period. Other coverages may have separate limits or sublimits. Appropriate limits depend on enrollment, activities, contracts, assets, transportation, employees, and the potential severity of a claim. Higher liability limits or umbrella coverage may be considered where available.
What happens next
Submit a business quote request or call the office. A licensed insurance agent will review the operation, identify any additional information needed, and discuss available markets.
Submitting a request does not bind coverage or confirm that a policy change has taken effect.
Stover & Crouch Insurance Est. 1920