Broker-arranged
Childcare centre insurance
An approved provider under the National Quality Framework must hold public liability insurance of at least $10 million for each service, and keep the evidence at the premises. Around that legal minimum sits the cover a long day care, preschool or outside-school-hours service actually needs: professional indemnity, cover for allegations of abuse, property and interruption, cyber and workers compensation. A licensed broker arranges it.
- The $10 million public liability minimum (regulation 29)
- Abuse cover and why standard policies exclude it
- Property, interruption, cyber and staff claims
What insurance does a childcare centre need?
Public liability of at least $10 million for each service, which the Education and Care Services National Regulations require of every approved provider (regulation 29), with evidence kept at the premises (regulation 180). Beyond that: professional indemnity for the educational program and advice, cover for allegations of physical or sexual abuse, a business pack for the building fit-out, contents and the loss of income after damage, management liability for staff claims, cyber cover for children’s records, motor for any bus, and workers compensation.
A state or territory government can provide the public liability cover for its own services. Private and community providers buy it.
The covers childcare services usually hold
| Cover | Why |
|---|---|
| Public liability | A child or parent injured at the service. The regulations set $10 million as the floor; many services hold $20 million. |
| Professional indemnity | Claims about the educational program, developmental advice or a failure to act on a concern. |
| Abuse and molestation cover | Allegations of physical or sexual abuse are excluded from most liability policies unless this cover is added. Insurers expect child safe standards, screening and supervision policies in place. |
| Business pack | Fit-out, play equipment, contents, glass and business interruption while the service is closed for repairs. |
| Management liability | Employment claims from a large casual workforce, and claims against directors and the committee. |
| Cyber insurance | Enrolment records, medical details and family information held in management software. |
| Workers compensation | Compulsory once you employ, in every state. |
What the National Quality Framework expects
ACECQA’s guide to the National Quality Framework ties the insurance duty to the approved provider: hold adequate public liability for each service with a minimum of $10 million, and keep evidence of the current policy where the regulatory authority can see it. Quality Area 7, governance and leadership, is where assessors look for the systems behind it: risk management, records, and the policies that insurers also ask about.
Family day care sits under the same regulations with its own rule (regulation 30): the provider must ensure each educator holds their own $10 million public liability policy. Our family day care page covers that side.
What public liability covers at a childcare service, and what it doesn’t
Usually covered
- Injury to children, families and visitors caused by the premises, equipment or supervision.
- Damage to property you don’t own, including a leased building.
- Legal costs to defend a claim, even one that fails.
- Food you serve, under the products liability section.
Usually not covered
- Allegations of abuse, unless abuse cover is added.
- Injury to your employees. That’s workers compensation.
- Regulatory fines and penalties.
- The educational program and advice without professional indemnity.
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Childcare insurance questions
Is public liability insurance compulsory for a childcare centre?
Yes. Regulation 29 of the Education and Care Services National Regulations requires an approved provider to hold adequate public liability cover for each service with a minimum of $10 million, and regulation 180 requires evidence of the current policy to be kept at the premises.
Does public liability cover allegations of abuse?
Usually not. Most liability policies exclude abuse unless a specific abuse and molestation section is added. Insurers offering it expect child safe policies, working with children checks and supervision procedures to be documented.
Do we need professional indemnity as well as public liability?
Public liability responds to injury and property damage. A claim that the service failed to follow its program, gave poor developmental advice or missed a concern is a professional claim, which is why services hold both.
What about outside-school-hours care and preschools?
The same regulations and the same $10 million minimum apply to every approved service type under the National Quality Framework. The property and interruption covers change with the premises, for example a service run from school grounds.
Why is childcare insurance arranged by a broker?
The abuse cover, the regulatory minimum and the mix of property and staff exposures need matching to the insurers that write the sector. A broker places the package and gives you the evidence of cover the regulations require.
Keep reading
More industries arranged by a broker
Sources
Early learning