Daycare liability insurance.

              INTERIM STUDY REPORT
Human Services Committee
Rep. Pam Peterson, Chairman
Oklahoma House of Representatives
Interim Study 11-108, Rep. Mike Shelton
October 25, 2011
Daycare liability insurance
Rep. Shelton
o Noted that the purpose of the study is to reduce the future impact of a tragedy; examine
the true cost of obtaining insurance and to reinforce that the security provided not only to
parents but also to child care providers will offset any costs associated with it.
Rick Farmer
Assistant Commissioner of Government Affairs
Oklahoma Insurance Department
o 23 states require daycare operators to carry liability insurance, ranging from $75,000 to ½
million dollar policies. The most common amount is a $300,000 policy.
o 9 states have posting requirement similar to Oklahoma’s for facilities that do not carry
insurance.
o An example of the cost would be approximately $250 per year for a small child care
center (12 children or less.)
Anita Fowler
Oklahoma City Family Child Care Home Association
o Their members believe that providers should be able to provide insurance to cover any
injury to a child in their care and believe that all providers can afford it and write it off on
their income tax as a business expense.
Kathy Cronemiller
Oklahoma Child Care Association
o Their association has an insurance company that homes or centers can go through to
access insurance.
o Having liability insurance is a good business practice and it’s not that expensive.
o Her cost is $4.60 per child for accident and liability insurance.
Edna Pittman
o Her son, Damarion, was seriously injured at 3 years of age when he was accidentally left
in a hot van owned by a 3 star child care provider who did not have liability insurance.
o He is unable to speak and has seizures.
o Her family has astronomical medical bills as a result.
o Liability insurance protects providers and families.
Rep. Purcy Walker
o Introduced his segment of the interim study by noting that he has a number of
constituents who are child care providers who have encountered a number of problems in
dealing with DHS licensing.