You've got a state-of-the-art child daycare built around a warm, clean and safe atmosphere. The teachers are handpicked professionals that give kids undivided attention, stimulation and fun learning. Children are happy. Staff is fulfilled. Parents are proud. What could go wrong?
Unfortunately, a lot of things - that your general business liability insurance does not cover.
Childcare Claim Examples that Really Occurred!
• Third Party Liability: After a Montessori School stated they could not admit a child due to licensed limited capacity, the parents sued for racial discrimination. The parents insisted that the school had a non-admission policy for African American children and mentioned the fact that the student body did not contain even one African American. Defense and Settlement costs totaled: $67,000.
• Internet / Email Liability: An administrative assistant for a childcare facility sent an email to all employees instead of her intended single recipient. The email contained an embarrassing inappropriate joke. The center's director instructed the employee to send a subsequent apology email to everyone. Just 2 months later, an employee that was laid off due to company downsizing, sued because of a hostile work environment and cited the inappropriate email as proof of an atmosphere that did not respect her religious principles. The facility was discomfited and uninterested in having this lawsuit revealed to the parents.
• Retaliation: An Indian childcare employee objected to the racial insults directed at him by some of his fellow workers. As a result, the owner assigned him to another room where there was less of a staff presence. The new situation warranted less work-time and therefore his hours were reduced. The slighted employee sued the childcare center for discrimination and retaliation for relating the discrimination. Defense and Settlement costs totaled: $125,000.
• Wage and Hour: A Non-Exempt head teacher was covertly tracking hours as she worked the overtime that was requested of her. As a salaried worker, this teacher never mentioned any grievance about the additional workload. When the owner was served a wage-and-hour lawsuit by the teacher, he was caught by surprise. Although there was no way to discern if the teacher's calculations regarding her work hours were precise, the center was guided by their lawyer to settle for the presented amount rather than take the risk of other present and past employees joining the lawsuit.
Employment Practices Liability Insurance
Employee-related claims come at a steep price. Protect your childcare center from a lawsuit with an EPLI plan that's tailored to you.
EPLI
An EPLI policy protects you against lawsuit claims made by current, past and possible employers, as well as visitors. It's coverage for a wide range of suits that stem from:
1. Wrongful termination
2. Discrimination
3. Sexual harassment
4. Service refusal
5. Other employee claims