3 Ways to Position Yourself as a Smart Risk for Insurance
For early education business owners, the task of shopping for insurance coverage has become significantly more challenging and costly as increasing numbers of early learning businesses grapple with skyrocketing insurance premiums — or worse, losing their coverage altogether. Securing a new insurance policy or even just maintaining coverage has become extremely difficult across the industry — particularly if your business has had previous claims, licensing violations, or operates in an area with high property risk.
To help you navigate this worrisome insurance landscape, our team at HINGE recently partnered with childcare insurance specialist Samantha Phillips for an eye-opening webinar on the topic. Phillips stressed the need to position your childcare business as a smart risk to insurance companies and shared some tangible tips for reducing risk.
Limit Property Exposure.
To reduce your property exposure, Phillips recommends:
Having all major systems in your center, including plumbing, electrical, HVAC, and roofing, inspected annually by licensed technicians.
Preventing water damage by ensuring that you and your team know where the water shut-off values are located.
Protecting fire sprinkler systems from cold weather by insulating pipes in any unheated areas of the building (such as the attic or basement) or by having the system winterized.
Proactively replacing water heaters as they near the end of their life expectancy to prevent leaks and water damage.
Keeping drains, gutters, and roofs free of debris, and trees trimmed back from the building.
Considering investing in technology such as backup generators, water detection sensors, and cameras or streaming apps for added security.
Reduce Auto Exposure.
Early education businesses that own vehicles should also take steps to reduce auto exposure. Phillips recommends:
Having vehicles routinely inspected by a mechanic as a first line of defense.
Installing fleet telematics or GPS tracking, having cages welded around catalytic converters, and keeping vehicles in a well-lit, fenced-in area to deter theft.
Consider adding “no child left behind” alarm systems to vehicles that transport children.
Provide driver safety training programs for all employees who operate company vehicles.
Mitigate Liability Exposure.
When it comes to reducing liability exposure at your early education business, there are many simple steps you can take, such as:
Conducting monthly staff trainings on how to avoid licensing violations.
Creating a mentorship program that pairs new employees with seasoned team members.
Using lower student-to-teacher ratios than required.
Utilizing floor mats and runners in wet areas.
Replacing wood chips in outdoor play areas on a regular basis or installing more durable fall zone surfacing.
Having commercial playground equipment inspected by a certified playground inspector.
Regularly inspecting and repairing fencing.
Bonus Tip: Craft a Narrative
“Insurers want to partner with early education businesses that are going above and beyond to mitigate risk,” says Phillips. “They want to see that you are proactive in implementing safety protocols and procedures to prevent claims from occurring.” Phillips recommends crafting a written narrative to accompany your insurance application that showcases any risk mitigation measures your business has taken. This can include efforts such as the creation of policy and procedure manuals, staff trainings, installing security cameras and alarms, and any maintenance or upgrades that have been made to your facility.
For many more practical risk mitigation recommendations, check out the full webinar.
Interested in learning more about how to set yourself and your early education business up for success? Join us for our free Door-to-Door Webinar Series or contact us at info@hingeadvisors.com at any time!