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General Liability Insurance for Daycare and Childcare in Texas: Coverage, Costs, and Requirements
General liability insurance for daycare and childcare in Texas: what it covers, what it excludes, average premiums, and how to compare quotes.
Written by
Editorial Team
Reviewed by
Patricia Nguyen
General liability insurance is a required and essential coverage for Texas daycare and childcare facilities. It covers third-party bodily injury and property damage claims arising from your facility and care operations. The Texas Health and Human Services Commission (HHSC) requires licensed childcare centers and licensed home daycares to carry GL as a condition of licensing. Childcare is a high-risk industry for GL claims because children in your care are particularly vulnerable to injury.
Quick Answer
Estimated general liability premiums for Texas childcare facilities:
| Facility Size | Estimated Annual GL Premium |
|---|---|
| Small daycare (up to 20 children) | $750 to $1,500 per year |
| Mid-size center (21 to 60 children) | $1,400 to $3,000 per year |
Texas childcare GL premiums are near the national average.
What GL Covers for Texas Childcare Facilities
Bodily Injury to Children
Covers claims arising from injuries to children in your care. Common examples: a child who falls on the playground and breaks an arm, a child who is injured during an activity, or a visitor child injured at your facility.
Bodily Injury to Parents and Visitors
Covers claims from parents, guardians, and other adults who are injured at your facility. Examples include a parent who slips and falls during drop-off or pick-up.
Property Damage
Covers damage to a parent's or third party's property that occurs at your facility or during care operations.
Defense Costs
GL covers attorney fees, court costs, and settlement amounts for covered claims, even if the claim is unfounded.
What GL Does Not Cover for Texas Childcare Facilities
Abuse and Molestation
Standard GL policies exclude claims arising from child abuse or molestation. Texas childcare operators should purchase a separate abuse and molestation (A&M) coverage endorsement or standalone policy. Many Texas licensing programs and parent contracts require A&M coverage. This is the most important coverage gap for childcare facilities.
Professional Errors
GL excludes claims arising from professional negligence in childcare. If a parent claims developmental neglect or educational malpractice, GL will not respond. Professional liability insurance covers those claims.
Employee Injuries
Texas does not mandate workers compensation for private employers, but it is strongly recommended for childcare centers with employees. GL does not cover employee injuries.
Texas-Specific Considerations
HHSC Licensing Requirement
The Texas Health and Human Services Commission requires licensed childcare centers and registered home daycares to carry GL insurance as a condition of their license. Confirm current minimum limits with HHSC before applying for or renewing your license.
Abuse and Molestation Coverage Is Essential
Texas childcare operators should not operate without abuse and molestation coverage. Standard GL excludes it. Purchase an A&M endorsement or standalone policy from your carrier and confirm it is in place before accepting any children into care.
Texas Rising Star and Subsidy Program Requirements
Texas childcare facilities participating in the Child Care and Development Fund (CCDF) subsidy program and the Texas Rising Star quality rating system may face additional insurance requirements from the Texas Workforce Commission. Confirm requirements before enrolling in these programs.
Outdoor and Playground Activity Exposure
Texas childcare facilities with outdoor play equipment and playground areas face elevated injury exposure. GL covers bodily injury claims arising from playground injuries. Regular equipment inspections and safety documentation help demonstrate risk management to carriers.
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Frequently Asked Questions
Do Texas daycare centers need general liability insurance?
Yes. HHSC requires licensed childcare centers and home daycares to carry GL as a condition of licensing.
What does GL cover for a Texas childcare facility?
GL covers bodily injury to children, parents, and visitors at your facility, property damage, and defense costs.
Does GL cover child abuse claims at a Texas daycare?
No. Standard GL policies exclude abuse and molestation claims. Purchase a separate abuse and molestation coverage endorsement or policy.
How much does GL cost for a Texas daycare?
Texas childcare facilities typically pay $750 to $1,500 per year for a small center GL policy.
What is the minimum GL limit required for a Texas childcare license?
Confirm current minimum limits with HHSC when applying for or renewing your license, as requirements may change.
Disclaimer
This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent and attorney for guidance specific to your situation.
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This article is for informational purposes only and does not constitute insurance advice. Coverage, requirements, and costs vary by state, carrier, and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.
About the author
Commercial Insurance Editorial Team
The Dareable editorial team covers commercial insurance for small business owners. Every guide is fact-checked by a licensed CIC or CPCU before publication.
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