Published June 10, 2026 · Last updated June 10, 2026
Daycare insurance in California: what the law requires, what the risk requires
California law gives family child care homes three options — liability insurance of at least $100,000 per occurrence and $300,000 aggregate, a $300,000 bond, or signed parent affidavits acknowledging neither exists. Child care centers have no equivalent statutory mandate. But the statutory floor and the real exposure are very different numbers, and the gap is where providers get hurt.
Child care insurance questions usually start with "what am I required to carry?" — a fair question with a precise answer in California, linked below. The better question is what a claim would actually cost, because the legislature's 1985-era minimums and a modern injury or abuse claim live in different worlds.
Does California require daycare providers to carry liability insurance?
For family child care homes, California gives three options under Health & Safety Code section 1597.531: carry liability insurance of at least $100,000 per occurrence and $300,000 annual aggregate, hold a $300,000 bond, or keep signed affidavits from each enrolled family acknowledging the home carries neither. Child care centers face no equivalent statutory insurance mandate — their requirements come from leases and contracts.
Statute text: Health & Safety Code § 1597.531. The same section requires a provider who carries insurance or a bond to add their landlord or HOA as an additional insured on written request, at the requester's expense.
Is the $100,000/$300,000 statutory minimum actually enough?
It is a floor, not a recommendation. A single serious injury claim can exceed those limits, the statute’s affidavit option leaves a provider entirely uninsured, and the minimums say nothing about abuse & molestation coverage — the exposure that most threatens a child care business. Most providers should treat the statute as a starting point only.
What insurance does a child care center need?
A typical center program includes general liability, abuse & molestation coverage, property, workers’ compensation for staff, and auto coverage if children are transported. Landlords commonly require liability limits well above any statutory floor and additional-insured status. The A&M wording deserves the closest review — standard policies often exclude or sharply cap it.
The A&M mechanics — claims-made triggers, retroactive dates, and what underwriters ask — are covered in our abuse & molestation guide.
What about my homeowners policy — doesn’t it cover an in-home daycare?
Don’t assume it. Homeowners policies are written for residential life, not business operations conducted in the home, and running a licensed family child care home is a business. Whether and how a homeowners policy responds varies by policy. Confirm in writing with your carrier; a business policy exists precisely because the answer is usually unfavorable.
Who licenses child care in California, and what are the license types?
The Child Care Licensing Program of the California Department of Social Services licenses both family child care homes and child care centers. Small family child care homes serve up to 8 children and large homes 7 to 14, in the provider’s own home; centers provide group care, usually in commercial space, for periods of less than 24 hours.
Sources: CDSS Child Care Licensing · Health & Safety Code § 1596.78 (statutory definitions of small and large family child care homes).
Related: Abuse & molestation coverage · Group home & STRTP insurance · What "additional insured" means · All human services resources