A variety of businesses are routinely operated in homes. Many home-based businesses affect little more than the homeowner and other residents, but some businesses that operate from a home directly affect many other people. One example of this is in-home daycares or schools, a business model that is rapidly increasing in popularity. This article discusses aspects of these particular operations.

Coverage for abuse or sexual assault in small schools is often difficult to obtain at a reasonable price. Limited corporal punishment coverage for teachers employed by a school system may be available from your homeowner's carrier. If you are an independent tutor or run your own school, most homeowners' policies cannot be modified to include corporal punishment. Abuse and corporal punishment may be available through the association(s) specializing in your school type.

While the company that writes your HO policy may be willing to add an endorsement to cover piano lessons, most will not want to cover a three-to-five child daycare operation. Liability coverage may be purchased separately. Coverage for property and liability can be provided through a Businessowners policy, but none of these forms includes professional liability or abuse or corporal punishment.

Specialty schools, such as ballet, sports, personal training, animal training, or horseback riding, will require specialty coverage. Again, your trade organization or independent agent can often find you coverage at a reasonable price.

Workers' compensation is essential for any person you employ.

Driving students in private vehicles or bus-like vehicles poses unique problems. You must hold a Commercial Driver's license if you haul more than 16 people, including the driver. Your school is probably too small to qualify for standard business auto insurance. If standard coverage is unavailable, many states have assigned risk pools and other mechanisms to provide you coverage-sometimes at reasonable prices. A good independent agent will understand these markets.

Your state will also have laws regulating the transportation of students, and these laws may require a special license when transporting fewer than 16 people. Subcontracting the driving does not lessen your responsibility for a whole raft of laws from vehicle accidents, workers compensation, ADA, and whether the driver has met the new substance abuse requirements.

While all of this may seem complex, the professional agents of Williams Insurance are ready to expertly guide you through all of these issues. Contact us today to make sure you have the coverage you need for your home-based school or daycare.


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