General Liability Insurance for Daycare Centers in Texas: Coverage, Costs, and DFPS Requirements

Texas childcare centers and licensed home daycares operate under the Texas Department of Family and Protective Services (DFPS) Child Care Licensing division. The licensing process requires proof of liability insurance for licensed childcare facilities. Beyond the regulatory requirement, the bodily injury and property damage exposures in childcare are real: children are injured, parents sue, and the legal costs of defending a daycare claim can be substantial.

Quick Answer

Estimated GL premiums for Texas daycare centers:

Facility Size	Annual GL Premium Range
Home-based licensed daycare, up to 6 children	$900 to $2,000 per year
Small daycare center, up to 30 children	$2,500 to $5,500 per year
Mid-size center, 30 to 75 children	$4,500 to $9,000 per year

Texas daycare GL premiums reflect the heightened liability exposure of working with children. The abuse and molestation endorsement adds meaningful cost and is not optional for licensed facilities.

DFPS Licensing Requirements

Texas DFPS Child Care Licensing requires licensed childcare centers and licensed home daycare providers to maintain liability insurance as a condition of licensure. Minimum requirements vary by license type:

• Licensed Childcare Center: proof of liability insurance required
• Licensed Home Daycare (Type A/Type B): insurance requirements apply, amounts vary by license type

DFPS licensing rules are found in Texas Administrative Code Title 26, Chapter 745. Review the specific requirements applicable to your license type, as DFPS updates requirements periodically.

If you operate without required insurance, DFPS can suspend or revoke your license.

What GL Covers for Texas Daycares

Bodily Injury

Covers medical costs and legal defense when a child or adult is injured at your facility. Common GL claims in childcare:

• A child falls on playground equipment and breaks an arm
• A child is injured in a supervised activity indoors
• A parent slips in a parking lot, entryway, or interior area
• A food allergy incident results in a child's medical treatment
• A visitor or delivery person is injured on the premises

Property Damage

Covers damage your operations cause to third-party property. Less common in daycare settings but relevant for facilities in leased commercial space.

Products Liability

Covers claims from products used in your facility: cleaning products, art supplies, food and snacks. This is particularly relevant for food allergy incidents.

Advertising Injury

Covers claims from your marketing activity.

Abuse and Molestation Coverage

Standard GL policies exclude claims arising from sexual abuse, molestation, or inappropriate touching by staff members or volunteers. This exclusion is broad and applies even to non-intentional claims or claims where liability is disputed.

For daycare centers, abuse and molestation coverage is not optional. It is the coverage that protects the facility when a parent or child files a claim alleging inappropriate conduct by a staff member, regardless of whether the claim is ultimately proven.

Most Texas daycare insurers offer abuse and molestation coverage as an endorsement or as a standalone policy. Some package daycare policies include it automatically. Verify whether your policy includes this coverage before purchasing.

Background checks: Texas law requires background checks through the Texas Department of Public Safety and DFPS criminal history verification for childcare workers. Maintaining current background checks for all staff members strengthens your defense in an abuse and molestation claim.

What GL Does NOT Cover

Employee injuries: workers comp covers injured employees. Texas does not mandate workers comp for most private employers, but daycare centers with multiple employees face real injury exposure from physically demanding work.

Your own property: classroom furniture, equipment, and supplies are covered under commercial property or BOP, not GL.

Professional services errors: curriculum recommendations, special needs accommodations, and developmental assessments may fall under professional liability rather than GL. Discuss with your agent if you provide services beyond basic custodial care.

DFPS administrative actions: GL does not cover license revocation proceedings, administrative fines, or DFPS investigation costs.

Texas Lease Requirements

If you lease commercial space for your daycare, your landlord likely requires:

• $1 million per occurrence minimum
• $2 million aggregate minimum
• Landlord named as additional insured

Frequently Asked Questions

Does Texas DFPS require me to carry GL insurance for my licensed home daycare?

Yes. Texas DFPS Child Care Licensing requires insurance for licensed Type A and Type B home daycare providers. The specific requirements are in Texas Administrative Code. Contact DFPS Child Care Licensing or review your license documentation for the current minimums.

My Texas daycare had a child fall on the playground. Is that a GL claim?

Yes. A child injured on your premises during supervised care is a bodily injury claim under your GL policy. Report the incident to your insurer promptly, document what happened, and preserve any evidence (playground equipment condition, supervision records, incident report). Parents who incur medical costs can file a claim whether or not they intend to sue.

What is the difference between GL and abuse and molestation coverage?

GL covers bodily injury and property damage claims from accidents and negligence. Abuse and molestation coverage specifically covers claims alleging inappropriate conduct by staff, volunteers, or others associated with your facility. Standard GL excludes abuse and molestation claims. For a daycare, both are essential.

Should I buy a BOP instead of standalone GL for my Texas daycare?

If your daycare has classroom equipment, furnishings, and supplies worth insuring, a BOP bundling GL and commercial property often costs less than buying them separately. For a home-based daycare with minimal equipment at the covered location, standalone GL may be sufficient and cheaper.

How do background check requirements affect my daycare insurance?

Most Texas daycare insurers require compliance with applicable background check requirements as a condition of coverage. A claim involving an employee with a disqualifying criminal history that was not discovered because of a missed background check could result in a coverage dispute. Maintain current background check records for all staff.

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 for guidance specific to your situation.

Sources

• Texas DFPS Child Care Licensing
• Texas Administrative Code Title 26, Chapter 745
• Texas Department of Public Safety Background Checks
• Insurance Information Institute