Hartford earned our top spot as the best small business insurer for daycare companies due to its affordability and coverage. We also suggest comparing quotes from our other top picks, including NEXT, biBerk and Simply Business.
Best Daycare Business Insurance
Updated: June 27, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford is the best business insurance company for daycare firms because it offers the greatest balance of coverage and affordability.
Thimble is the cheapest overall commercial insurance provider for daycare businesses, with low monthly rates for various coverage types.
To shop for business insurance for your daycare business, assess the risks in your industry, consult agents and other similar organizations, and compare multiple options.
Best Business Insurance for Daycare Companies
| The Hartford | 96 | 98 | 91 |
| NEXT | 95 | 95 | 94 |
| biBerk | 91 | 91 | 91 |
| Simply Business | 89 | 88 | 83 |
| Coverdash | 88 | 86 | 83 |
| Progressive Commercial | 87 | 89 | 81 |
| Nationwide | 87 | 81 | 91 |
| Hiscox | 86 | 85 | 87 |
| Chubb | 85 | 80 | 87 |
| Thimble | 85 | 86 | 81 |
*All scores were based on a daycare business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. The Hartford
pros
Lowest professional liability insurance rates
Extensive experience with over 200 years in the industry
Highest financial stability ratings
cons
Less affordable for workers' comp policies
COMPANY HIGHLIGHTS
The Hartford placed first as the best overall provider for daycare businesses due to its balance of affordability and customer service. It's the most affordable overall, with the best rates for professional liability, and the second best rates for general liability insurance. It also stands out with an A+ from AM Best for financial stability, which is the best in our study.
2. NEXT
pros
Best customer service experience
Reasonable rates for most coverage types
Large coverage selection
cons
Slower quote times than competition
Lower financial stability ratings
COMPANY HIGHLIGHTS
NEXT emerges as the second-best business insurance provider for daycare centers, delivering an outstanding combination of excellent customer service, competitive pricing, and thorough coverage tailored to childcare operations.
The insurer ranks third for affordability, with annual workers' compensation coverage starting at $7 monthly, making it an attractive option for daycare owners who need robust protection for their staff and operations. While the company has less than a decade in the insurance industry, NEXT has achieved a remarkable 4.7 out of 5.0 customer rating from over 3,000 policyholders.
3. biBerk
pros
Online convenience
Good financial stability ratings
Affordable BOP insurance rates
cons
Online-only customer support with no phone representatives
Fewer coverage options than other insurers
COMPANY HIGHLIGHTS
biBerk has established itself as a solid choice in the daycare insurance market since it offers streamlined coverage solutions for childcare facilities. It offers competitive rates for general liability and professional liability insurance, helping daycare centers secure necessary coverage against the risks inherent in child supervision and care. biBerk's straightforward digital platform resonates with daycare owners who value efficient service and clear policy terms.
Cheapest Business Insurance for Daycare Firms
Based on our study, companies like NEXT and The Hartford offer the cheapest overall commercial insurance for daycare companies. However, this applies only to daycare companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Daycare Companies
With an average monthly rate of $28, NEXT and The Hartford offer the lowest-cost general liability insurance for daycare companies. Consider also getting quotes from the next-most-affordable insurers: biBerk and Simply Business.
| NEXT | $28 | $336 |
| The Hartford | $28 | $334 |
| biBerk | $29 | $350 |
| Simply Business | $32 | $387 |
| Progressive Commercial | $33 | $402 |
| Coverdash | $36 | $430 |
| Thimble | $36 | $429 |
| Hiscox | $37 | $440 |
| Nationwide | $37 | $447 |
| Chubb | $38 | $457 |
Cheapest Workers' Comp Insurance for Daycare Companies
For daycare businesses shopping for workers' comp insurance, Thimble is the most affordable insurer, with average rates of $6 per month or $69 yearly. Still, quotes from other low-cost insurers like Progressive Commercial, Hiscox, Simply Business and The Hartford are worth checking.
| Hiscox | $6 | $77 |
| Progressive Commercial | $6 | $74 |
| Simply Business | $6 | $77 |
| The Hartford | $6 | $78 |
| Thimble | $6 | $69 |
| biBerk | $7 | $81 |
| Coverdash | $7 | $79 |
| Nationwide | $7 | $86 |
| NEXT | $7 | $80 |
| Chubb | $8 | $93 |
Cheapest Professional Liability Insurance for Daycare Companies
The Hartford offers the most affordable professional liability insurance options for daycare companies, with low average monthly rates of $96. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $96 | $1,156 |
| NEXT | $100 | $1,205 |
| Progressive Commercial | $103 | $1,231 |
| Thimble | $106 | $1,268 |
| Hiscox | $107 | $1,284 |
| Coverdash | $108 | $1,293 |
| Simply Business | $108 | $1,296 |
| biBerk | $112 | $1,343 |
| Nationwide | $116 | $1,398 |
| Chubb | $126 | $1,511 |
Cheapest BOP Insurance for Daycare Companies
For those seeking combined general liability and property insurance in a business owner’s policy (BOP), The Hartford offers the lowest average annual rate at $424. That’s a savings of roughly $30 annually compared to biBerk, the second most affordable option.
| The Hartford | $35 | $424 |
| biBerk | $38 | $454 |
| NEXT | $41 | $488 |
| Simply Business | $48 | $579 |
| Progressive Commercial | $50 | $599 |
| Coverdash | $52 | $622 |
| Hiscox | $54 | $650 |
| Nationwide | $56 | $675 |
| Thimble | $56 | $671 |
| Chubb | $57 | $686 |
What Type of Coverage Do You Need for a Daycare Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance. A surety bond may also be required in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED DAYCARE BUSINESS COVERAGE
General liability insurance is strongly recommended for daycare companies because it covers common risks like third-party bodily injury, property damage and legal defense costs. Professional liability insurance is suitable for businesses that work under client contracts or provide specialized services. This coverage becomes especially useful for companies offering specialized services or handling large contracts with more risk of disputes.
How to Get the Best Cheap Business Insurance for Your Daycare Company
Here's a step-by-step guide for finding the best and cheapest business insurance for your daycare company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you an idea of your coverage needs and prevent you from getting excessive coverage.
- 2
Research costs
To get the best deal, research average costs for your business and determine which providers offer the cheapest rates overall. This will give you an idea of how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
Research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, research coverage options to make sure you're covered for the right items.
- 4
Compare multiple quotes through different means
Compare multiple quotes for coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to be sure you still have the best deal.
How to Decrease Your Daycare Business's Liability Risk
Reducing liability risks in your daycare business is key to managing insurance costs effectively. We've organized practical risk mitigation strategies by business type or risk level to help you find the best fit for your needs.
Daycare Business Risk Type | Included Types of Daycare Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Overnight care facilities, special needs childcare, infant care (under 12 months), medical daycare for children with health conditions, transportation services with large vehicles |
|
Moderately high | Large daycare centers (50+ children), toddler care (12-36 months), field trip services, swimming/water activities, playground supervision with climbing equipment |
|
Moderate | Standard daycare centers, preschool programs, after-school care, summer day camps, family daycare homes (6-12 children) |
|
Moderately low | Small family daycare (under 6 children), part-time childcare, drop-in services, childcare for events, educational programs without physical activities |
|
Lowest | Childcare consulting, parent education classes, daycare administration services, childcare referral services, educational material sales |
|
Best Insurance for Daycare Business: Bottom Line
The Hartford is the best insurer for daycare business insurance, offering the cheapest option overall. We also recommend getting quotes from NEXT and biBerk. For the best deal, talk to agents, research providers and pricing and compare multiple quotes side by side.
Daycare Business Insurance: FAQ
This section provides answers to common questions about daycare business insurance. Here are some of the most common questions people ask about getting business insurance for a daycare company.
Who offers the best daycare business insurance overall?
The Hartford provides the best business insurance for daycare companies, with an impressive customer service rating and an overall score of 96 out of 100. NEXT is a close contender.
Who has the cheapest business insurance for daycare companies?
Here are the cheapest business insurance companies for daycare companies by coverage type:
- Cheapest general liability insurance: NEXT at $28 monthly
- Cheapest workers' comp insurance: Thimble at $6 monthly
- Cheapest professional liability insurance: The Hartford at $96 monthly
- Cheapest BOP insurance: The Hartford at $36 monthly
What business insurance is required for daycare organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for daycare businesses, with requirements varying by state.
How much does daycare business insurance cost?
Business insurance costs for daycare businesses vary depending on the type of coverage. Below we've broken down costs for commonly needed coverage for small businesses:
- General Liability: $140 per month
- Workers Comp: $170 per month
- Professional Liability: $60 per month
- BOP Insurance: $200 per month
How We Chose the Best Daycare Business Insurance
We selected the best business insurer for daycare companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 27, 2025.
- NEXT. "Customer Reviews." Accessed June 27, 2025.