Why a Broker Matters When Insuring Your Child Care Centre

Running a child care centre means parents trust you with their most precious people. That trust deserves a child care insurance program built for real-world risks, not just a policy off the shelf. That’s where a specialist broker earns their keep, particularly when you’re changing insurers and small wording differences can create big coverage gaps.

The sensitive question: does your policy cover sexual abuse claims?

It’s uncomfortable, but essential. Not all policies respond the same way to sexual abuse or molestation (SAM) allegations. Some exclude SAM entirely; others hide it behind low sub-limits, strict reporting conditions, or confusing endorsements. A good broker will interrogate the wording line by line:

• What are the limits and sub-limits?
• Are defence costs in addition to limits?
• Is vicarious liability for the centre and management covered?
• What are the reporting requirements and timeframes?

These details matter most when emotions run high and your reputation is on the line.

Claims-made vs occurrence: avoid the “switching gap”

Another common trap appears when you move insurers without checking how your Public Liability was structured. Was your policy previously on a claims-made basis? If so, coverage is triggered when the claim is made, not when the incident occurred. If you shift to a new insurer, especially to an occurrence-based policy, prior incidents might fall into a grey zone unless you’ve protected your “past”.

A broker will map this out and fix it. Morgan Insurance Brokers has access to insurers that can offer a retroactive date on your Public Liability to cover retrospective work, then restructure the program to an occurrence-based policy going forward. That means historical activities are picked up, and future incidents are handled in the more intuitive occurrence format. Way better.

What a broker actually does for you

• Coverage audit & gap analysis: We compare your operations to your current wordings, endorsements, and schedules to spot blind spots
• Market access: Brokers open doors to insurers who understand child care risks and are willing to add retroactive dates or custom endorsements.
• Transition plan: When switching, we line up effective dates, seek retroactive coverage, consider run-off if needed, and ensure no lapse between policies.
• Claims advocacy: If an incident occurs, you get a strategist, lodgement, evidence, experts, and negotiation so you’re not learning the process in the middle of a crisis.

Practical next steps when changing insurers

1. Pull the paperwork: Prior policies, schedules, endorsements, and claims history.
2. Confirm the basis: Was liability claims-made or occurrence? Note any retroactive/continuity dates.
3. Scope your risks: Ratios, activities, transport, excursions, ratios of staff to children, and third-party providers.
4. Ask specifically about sexual abuse: Get the answer in writing with limits and conditions.
5. Bridge the past: Use a broker to secure a retroactive date and restructure to occurrence going forward.

The result is confidence: parents know you’re prepared, regulators see diligence, and you can focus on care, not clauses. If you’re considering a change, partner with a broker who understands child care. Morgan Insurance Brokers can source the retroactive solutions and organise your cover so yesterday and tomorrow are both looked after.

General information only. Consider your objectives and always read the full policy wording.