Is Public Liability Insurance legally required for all UK nurseries?

While not explicitly mandated by UK law for all businesses, Public Liability Insurance is a fundamental requirement for nurseries and childcare providers. Regulatory bodies such as Ofsted in England, Care Inspectorate Wales, and Care Inspectorate Scotland require registered providers to hold adequate public liability cover to protect children, parents, and visitors. Operating without it would likely breach your registration conditions and expose your business to significant financial risk from third-party claims.

What is the difference between Public Liability and Professional Indemnity for a nursery?

Public Liability Insurance covers claims arising from injury to a third party (e.g., a child or parent) or damage to their property due to your business activities or premises. For example, if a child trips and breaks an arm on your property. Professional Indemnity Insurance, on the other hand, covers claims of financial loss or injury to a third party resulting from professional negligence, errors, or omissions in the professional services or advice you provide. For a nursery, this could involve allegations of inadequate care, incorrect educational practices, or misjudgment by staff that leads to a negative outcome for a child.

Do I need Employers' Liability Insurance if I only employ part-time staff or volunteers?

Yes, under the Employers' Liability (Compulsory Insurance) Act 1969, if you employ anyone, even part-time staff, temporary staff, or volunteers, you are legally required to have Employers' Liability Insurance. There are very few exceptions, and failure to have this cover can result in significant fines. This insurance protects your business against claims from employees who suffer injury or illness as a result of their work for you.

How often should I review my nursery insurance policy?

It is advisable to review your nursery insurance policy at least annually, typically at renewal. However, you should also review it immediately if there are any significant changes to your business operations. This includes expanding your services, increasing the number of children you care for, hiring more staff, renovating your premises, purchasing new equipment, or changing your business structure. Keeping your broker informed of these changes ensures your cover remains adequate and valid.

Can nursery insurance cover allegations of abuse?

Yes, many specialist nursery insurance UK policies include specific cover for allegations of abuse. This is a critical component given the nature of childcare. This cover typically helps with legal defence costs and potential compensation payments, whether the allegations are founded or unfounded. It is important to confirm that this specific cover is included in your policy and to understand its limits and any conditions.

Nursery Insurance UK: A Guide for Childcare Providers

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