Representative empty playground photo, not a Morgano Agency client facility or a Greenville, SC location. Photo: geograph.org.uk contributor, CC BY-SA 2.0.

Daycare Insurance in Greenville, SC

Reviewed by Vic Morgano, independent insurance agent in Greenville, SC. Last updated July 2026.

A daycare or childcare center in Greenville needs general liability, professional liability, abuse and molestation coverage, workers compensation, commercial property, and commercial auto if it transports children. The Morgano Agency, an independent insurance agency in Greenville, SC, packages those coverages for licensed centers, preschools, and family home daycares, and shops the program across carriers that specialize in childcare risk. Abuse and molestation coverage, professional liability, and corporal punishment exclusions make this one of the most carefully written commercial programs in the trade.

This guide covers what daycare insurance is, what it covers, what it does not cover, what else childcare centers in Greenville need to know, and the questions owners most often ask before opening or renewing.

What Daycare Insurance Is

Daycare insurance is a coordinated set of commercial coverages packaged for the childcare industry. The program addresses bodily injury to children, professional liability for educational decisions, abuse and molestation allegations (the highest-severity claim in the trade), property damage to the facility, vehicle accidents during field trips, and employee injury.

Each policy is written separately but managed as one program. Most daycare insurance is written through specialty carriers that focus exclusively on childcare risks.

What Daycare Insurance Covers

A typical daycare insurance program in Greenville includes the following coverages:

• General liability. Pays for injury to a child or visitor at the facility. Playground falls, bites, slip-and-fall claims. Most centers carry $1,000,000 per occurrence and $3,000,000 aggregate.
• Professional liability. Pays for allegations that the center’s care or supervision failed and caused harm. Sometimes packaged inside the CGL form, sometimes separate.
• Abuse and molestation coverage. The most important coverage for a daycare. Allegation alone (without a conviction) can ruin a center, and defense costs run six figures. Carriers limit this coverage and require background-check protocols.
• Corporal punishment endorsement. Some standard CGL forms exclude corporal punishment claims. Most daycare specialty programs add this back to cover defense costs.
• Workers compensation. Required in SC at four or more employees.
• Commercial property. Covers the building, contents, playground equipment, and contents. Most centers also need business income coverage for closures.
• Commercial auto. Required when the center transports children. Higher limits and driver vetting are standard.
• Employment practices liability. Pays for wrongful termination, discrimination, and harassment claims by staff.

The right mix depends on center size, age groups served, whether transportation is offered, and whether the center is a chain, family home, or church-affiliated.

What Daycare Insurance Does Not Cover

Even a complete daycare insurance program has limits. The coverages above usually exclude:

• Punitive damages. In most states (and in SC) punitive damages are not insurable when intentionally caused. Defense costs may still be covered.
• Known abuse claims. A claim already reported or known at policy inception is excluded.
• Communicable disease. Most policies have an infectious-disease sub-limit or exclusion after the COVID period.
• Inadequate background checks. Carriers can deny abuse claims if mandatory background checks were not run on every employee. Discipline matters.
• Unreported incidents. A pattern of unreported incidents can be cited as a defense issue at claim time.
• Building defects. The owner of the building (when leased) usually bears responsibility for structural failures unless the daycare is responsible for maintenance.

Most of these gaps can be filled with an endorsement or a separate policy when the exposure is real for the business.

Daycare Insurance Requirements in South Carolina

Licensed and registered childcare centers in South Carolina are regulated by the SC Department of Social Services Division of Early Care and Education. License requirements include facility inspections, staff background checks, and child-to-staff ratios.

Parent disclosure of insurance is governed by SC Code 63-13-210, which requires childcare facilities to disclose to parents in writing whether or not the center carries liability insurance and the limits of that coverage. Centers without insurance must provide written notice to parents.

Workers compensation is required at four or more employees under SC Code 42-1-360. Most daycare contracts and bank lenders also require proof.

Most commercial leases for daycare space require $1,000,000 per occurrence and $3,000,000 aggregate general liability and abuse and molestation coverage as a minimum.

What Daycare Insurance Costs in Greenville

Premium varies by daycare center. The factors that move the bill most are:

• Number of children licensed for and average daily attendance
• Age groups served (infants drive higher rates than school-age)
• Whether transportation is offered
• Three-year claims history
• Staff background check and training program discipline
• Square footage and building age
• Whether the facility is owned or leased
• Years in operation and management experience

The cheapest carrier for one daycare center is rarely the cheapest for another. The Morgano Agency shops the program across multiple carriers at every renewal so the rate stays competitive.

How to File a daycare insurance Claim

The claim process determines whether the policy actually pays. The typical sequence:

1. Document the incident immediately with photos, notes, and a copy of the daily log.
2. Call The Morgano Agency before the carrier. For any abuse or injury allegation, immediate notice is critical.
3. For workers compensation injuries, report within the SC WCC window.
4. For child injuries, follow your incident report protocol and contact parents per policy.
5. Notify SC DSS as required by your license terms when applicable.
6. Cooperate with the adjuster. Provide background check records, staff schedules, and the daily attendance log.

For minor losses where the deductible exceeds the damage, filing a claim can cost more in future premium than the payout recovers. We help evaluate that math before anything gets reported.

Frequently Asked Questions