Knowing what insurance policies to have and making sure you have high-quality coverage is of the utmost importance for a child care business owner. Today, Kris talks with Samantha Phillips of Aleaf Insurance about the three biggest, most common insurance mistakes she sees in the child care field and how we can best address them. They also discuss policies every school should have, case studies of actual child care owners switching their insurance to guarantee better coverage, and how to avoid situations that cause financial ruin.

 

Pop over to the Podcast to Hear These Key Takeaways:

Samantha serves around 100 preschools nationwide while pursuing her passion at Aleaf, located in Frisco, Texas.

Samantha worked her way up from receptionist and self-studied her way to become a branch manager. She was doing great at work but needed to take care of her physical health and spend more time with her family. She then got an opportunity to create a unit strictly dedicated to child care for Aleaf, and this gave her the work/life balance at a place that represented her values.

The values important to Samantha that Aleaf gives her the opportunity to represent are transparency, punctuality, fairness, integrity, and friendship.

One of the biggest mistakes that Samantha sees is owners not knowing what their business income limit for interruption is. She recommends an amount of up to 12 months of revenue plus expenses. Another mistake is owners paying parents out of pocket instead of using an accident medical policy.

The foundational policies that Samantha recommends, regardless of school size, are accident medical, business auto liability and a commercial package policy.

Samantha gives an example from New Wonders Learning Center in New York where they increased certain policies and saved money overall.

Three takeaways from Samantha:

  1.  When it comes to insurance choose quality over quantity.
  2.  As a child care center, if you are charging premium prices for enrollment, why wouldn’t you apply that to the business insurance you get as well?
  3. If your premium is not even, then you are most likely in surplus lines, which should really just be a backup and not your first choice.