Skip to content

Prime Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Childcare Facilities Need Employment Practices Liability Insurance Too!

It’s for Your Protection!

The facts from PRIME Insurance Agency

True Childcare Claims:

Example of Third Party Liability


Mr. and Mrs. Jones* were angry. Their preschool age child was denied entry into the Montessori School of their choice. The school insisted it was because of limited licensed capability. The Jones parents believed otherwise, maintaining that their son wasn’t admitted due to racial discrimination. Basing their assertion on the fact that there was not even one African American among the student body, they sued. The total amount the school spent for Defense and Settlement was $67,000.

Example of Internet, Email Liability


Beth* worked as the secretary to the administrator of a daycare center. One day, she inadvertently emailed a tasteless joke to the entire staff instead of her one intended recipient. In an attempt to rectify the embarrassing error, the administrator asked Beth to follow up by sending an apology to all. Two months passed without further incident. Then, Pam*, who worked in the center as well, was notified that the facility was downscaling and her services were no longer needed. Pam sued the childcare center on the grounds that it encouraged a hostile work situation in which an offensive email that contradicted her religious convictions was sent. Unwilling to allow the episode to the public forefront where parents would be privy to it, the facility agreed to a settlement.

Example of Retaliation Liability

Riya* worked in a childcare facility but he was far from happy and consistently complained about the racially insensitive comments delivered his way by the other employees. The director sought to alleviate the situation by assigning Riya to another area where less staff members worked. This did not sit well with Riya either, as less work hours were needed in this new situation. Riya sued the childcare administration for racial discrimination as well as retaliation for complaining about the discriminating manner in which he was treated. Defense and Settlement costs for the center totaled $125,000.

Example of Wage and Hour Liability

Unbeknownst to the Little ‘Uns* Childcare Center, the salaried principal was marking down the extra hours of overtime she had been requested to put in. Never once did she complain about the overload of work. Then, the owner of the center was suddenly informed of a lawsuit initiated by the principal in regard to wage and hour. Despite the fact that there was no evidence that the principal’s hourly account was accurate, the owner’s legal team advised him to opt for a settlement lest other workers follow the lead and join the lawsuit.

*Not real name

PRIME Insurance and Employment Practices Liability Insurance

Employment related childcare claims can be made by past and current employees – and even by those who have applied to be considered as a worker. They can also be made by people visiting your facility. Let PRIME Insurance help get you the coverage you need in the event you are confronted by a lawsuit in regard to:

  • Discrimination
  • Sexual Harassment
  • Wrongful Employment Termination
  • Service Refusal
  • Any other employee-related claim

Visit us online at, email us at prime [at] primeins [dot] com, or give us a call at 732-886-5751 and discover a customized EPLI plan at the best quote. Visit us and discover the passion of insurance behind our name.


So you think your childcare center has it made. Clean facility, fun, warm atmosphere – what could go wrong? Plenty! See how PRIME Insurance can help get you the protection you need when employment practices liability comes into play!


There are no comments yet.

Leave a Comment

Required fields are marked with


Your name, comment, and URL will appear on this page after it has been reviewed and approved. Your email address will not be published.