Spilled juice on the carpet, a bump on the head, or a broken toy, childminding is full of surprises. While most are harmless, some incidents can have serious consequences. That’s why the right insurance is essential. This guide explores the key types of insurance childminders in the UK need to protect their business and home.
Why Do Childminders Need Insurance?
Childminding involves looking after children in a home environment, meaning accidents and unexpected incidents can happen. Proper insurance helps cover costs if something goes wrong, ensuring legal compliance and financial protection.
Types of Insurance Childminders Require
1. Public Liability Insurance
Public liability insurance is a legal requirement for registered childminders in the UK. It protects against claims from third parties (e.g., parents or visitors) for injuries or property damage occurring during childminding activities. For example:
- A child trips over a toy and suffers an injury.
- A visiting parent slips on a wet floor and makes a claim.
It’s worth noting, public liability insurance covers legal fees and any compensation awarded. However, Intelligent Insurance does not offer public liability or employers’ liability cover for childminders. We can provide home insurance that accounts for a business being run from the property.
Home Business Insurance
Standard home insurance policies often exclude business activities, meaning childminders should have specialist home business insurance. This ensures:
- The building is covered if damaged due to childminding activities.
- You remain covered for any accidents occurring within your home.
Employers’ Liability Insurance
If you hire assistants, employers’ liability insurance is legally required. This protects you if an employee (e.g., an assistant) is injured while working. Failing to have this insurance when required can result in fines of up to £2,500 per day.
Additional Insurance Considerations
- Contents Insurance: Covers household goods and personal belongings, such as furniture and toys. Business-use items are not covered unless classified as business equipment, like office furniture or computers.
- Accidental Damage Cover: Covers unexpected damage to household contents within the home. However, it does not cover business-related equipment or items used for trade.
- Home Emergency Cover: Covers emergencies affecting your home, such as plumbing issues, electrical failures, or boiler breakdowns. However, it does not cover emergencies directly related to business activities, such as business equipment failures or structural modifications for business use.
Expert Insight
“Childminders should always inform their home insurer about their business activities. Many claims get rejected simply because the insurer wasn’t made aware that the home was being used for childminding.”
— Scott Raisbeck, Product Manager
Real-Life Scenarios Where Insurance Helps
Scenario 1: Child Injury Claim
A child in your care falls and fractures an arm. Their parents claim negligence. Public liability insurance covers the legal costs and potential compensation.
Scenario 2: Home Damage
A child accidentally knocks over a lamp, causing a fire. Home business insurance ensures repairs and replacements are covered.
Scenario 3: Employee Injury
Your assistant injures their back while lifting a child. Employers’ liability insurance covers medical costs and lost wages.
How to Choose the Right Policy
When selecting insurance:
- Ensure policies comply with Ofsted or local regulatory body requirements.
- Check coverage limits (public liability often covers £5 million or more).
- Confirm that business activities are explicitly covered under your home insurance.
- Read exclusions carefully to avoid gaps in coverage.
Final Thoughts
Insurance is vital for childminders to protect themselves, their business, and the children in their care. Public liability insurance is mandatory, while home business insurance ensures adequate protection for both home and business assets. Employers’ liability is essential if assistants are employed. Investing in the right policy means peace of mind and professional security.
For further guidance, check with Ofsted, childminding associations, or specialist insurers that offer tailored policies for home-based childminders.