Childcare & Daycare Insurance Requirements in California: Title 22 Guide

Published by Insurance City on September 4, 2026 · Updated September 28, 2026 — Lee esta guía en español

Answer first: Yes. California requires every licensed family child care home to carry liability insurance of at least $100,000 per occurrence and $300,000 in total annual aggregate, or a $300,000 bond, or to keep a signed affidavit from every parent saying the home has no such coverage (Health and Safety Code §1597.531). Your homeowners policy cannot cover the daycare's liability: California law says that coverage must come from a separate endorsement or policy (Insurance Code §676.1). Centers usually need general liability, abuse and molestation coverage, workers' comp and property coverage set by their lease and funding contracts. Call (209) 670-1556. Insurance City Agency, LLC, CA License #6003045, Stockton and San Jose.

What is California Title 22 for child care?

Definition: Title 22 of the California Code of Regulations, Division 12, holds the licensing rules for child care facilities, which the California Department of Social Services (CDSS) Community Care Licensing Division enforces. The statutes behind those rules are in the Health and Safety Code, starting with the California Child Day Care Facilities Act. Two license types matter for insurance:

• Family child care home: care for 14 or fewer children in the provider's own home (HSC §1596.78). A small home cares for eight or fewer children and a large home for 7 to 14, counting the provider's own children under 10 who live there.
• Child care center: a facility outside a residence, such as a preschool, infant center or school-age program, licensed under the center regulations.

The insurance dollar minimums in the statute apply to family child care homes. Centers get their requirements mainly from leases, subsidy and funding agreements, and the licensing analyst's review of the application.

What insurance does California require for a family child care home?

Health and Safety Code §1597.531 gives a family child care home three ways to comply. Every home must use one of them:

Option	What the law says	Practical note
1. Liability insurance	At least $100,000 per occurrence and $300,000 total annual aggregate for injury to clients and guests caused by the negligence of the licensee or employees	This is a floor. Many providers, subsidy agencies and landlords ask for higher limits
2. Bond	A bond in the aggregate amount of $300,000	Rarely used; a bond is not insurance and the surety can seek repayment from you
3. Parent affidavits	A CDSS form signed by each parent stating they were told the home carries no liability insurance or bond to state standards; reviewed at each licensing inspection	Legal, but it leaves your personal assets exposed. If you rent, the affidavit must also warn that the owner's or HOA's insurance may not cover daycare losses

Renting or in an HOA? If you carry the insurance or bond and care for children in a rented home or in a building with HOA common areas, you must name the property owner or HOA as an additional insured when they ask in writing, as long as adding them won't cause cancellation, and the owner or HOA pays any added premium (HSC §1597.531(b)). If you care for the extra school-age children allowed above six (small home) or above 12 (large home) in a rented home, you also need the property owner's written consent (HSC §1597.44, §1597.465).

Does homeowners insurance cover a licensed family daycare in my home?

Not the daycare's liability. Insurance Code §676.1(c) says it is against public policy for a residential property policy to cover liability arising from a family day care home; that coverage must come from a separate endorsement or policy with its own premium. The same section protects you in another way: an insurer that arbitrarily cancels or refuses to renew a homeowners policy solely because you hold a family day care license faces administrative sanctions, unless there was a material misrepresentation, a substantial change in risk, nonpayment, or the insurer stopped writing homeowners policies.

What to do: tell your homeowners company in writing that you are licensed, ask what they need, and buy separate daycare liability. Keep your homeowners policy for the house itself. Hiding the daycare is what creates the "material misrepresentation" exception. For home-business basics, see does home insurance cover a home business (Spanish).

Family child care home vs. child care center: what each one needs

Coverage	Family child care home	Child care center
Liability for children and guests	Required by HSC §1597.531 (or bond or affidavits); daycare liability policy or endorsement	Commercial general liability; limits set by lease and funding contracts
Abuse and molestation	Strongly recommended; often excluded unless added	Commonly required by contracts
Workers' compensation	Required once you have an employee, including an assistant (Labor Code §3700)	Required; centers have staff
Property	House stays on homeowners; daycare equipment may need a business property endorsement	Commercial property or BOP for contents and improvements
Driving children	Tell your auto company; business use may need an endorsement or commercial auto	Commercial auto for center vehicles; hired and non-owned auto if staff drive their own cars
Accident medical for children	Optional; pays minor injury bills regardless of fault	Optional; common with larger enrollment

What is abuse and molestation coverage and why does it matter for daycare?

Abuse and molestation (A&M) coverage pays defense costs and covered damages when someone alleges a child was abused while in your care, including claims that you failed to supervise or screen staff. Many general liability forms exclude these allegations unless A&M is added back by endorsement or bought separately. Even a claim that turns out to be false can be expensive to defend. When you compare daycare policies, check three things: whether A&M is included, its separate limit, and whether it covers the organization, the provider and employees.

What affects the cost of daycare insurance in California?

We quote daycare coverage from your facts, not a published average. These are the rating factors:

Factor	Why it matters
License type and capacity	Small home, large home or center; number of children
Ages served	Infants and toddlers need more hands-on care than school-age children
Hours and overnight care	Longer hours mean more exposure
Pools, trampolines, play equipment, pets	Common underwriting questions; some companies exclude pools
Transportation and field trips	Driving children adds auto exposure
Staff and payroll	Drives workers' comp and A&M underwriting (background checks)
Limits and claims history	Higher limits than the state floor, prior claims

Step-by-step: how to insure a family child care home before licensing

1. Decide small or large home and the ages you'll serve.
2. Choose how you'll meet HSC §1597.531: insurance, bond or parent affidavits. We recommend insurance.
3. Notify your homeowners company in writing and keep its reply.
4. If you rent or have an HOA, get any written consent you need and ask whether the owner or HOA wants to be an additional insured.
5. Get quotes for daycare liability with A&M, plus workers' comp if you'll hire an assistant.
6. Review your auto policy if you'll drive children.
7. Keep the certificate of insurance with your licensing file and give copies to subsidy agencies or your landlord when asked.

What should I have ready for a daycare insurance quote?

• License type, number and capacity (or application status)
• Ages served, hours, and whether you offer overnight or weekend care
• Employees and assistants, payroll estimate, and background-check process
• Pool, trampoline, play equipment and pets
• Whether you drive children or take field trips
• Landlord, HOA or subsidy-agency insurance requirements

Call (209) 670-1556. We serve providers across California from Stockton and San Jose, in English and Spanish. Local guides: daycare insurance in Stockton and daycare insurance in Merced. The program we shop, separate from this legal menu, is daycare and family child care insurance.

Frequently asked questions

Does California require insurance for a family child care home?

Yes, in one of three forms. Health and Safety Code section 1597.531 requires liability insurance of at least $100,000 per occurrence and $300,000 total annual aggregate, or a $300,000 bond, or a file of affidavits signed by each parent stating the home has no such coverage. The affidavits are reviewed at each licensing inspection.

Does my homeowners insurance cover my licensed family daycare?

No, not the daycare's liability. Insurance Code section 676.1(c) says a residential property policy may not cover liability arising from a family day care home; that coverage must come from a separate endorsement or policy with its own premium.

Can my homeowners company cancel me because I run a licensed daycare?

Insurance Code section 676.1 says an insurer that arbitrarily cancels or refuses to renew a homeowners policy solely because you hold a family day care license is subject to administrative sanctions, unless there was a material misrepresentation, a substantial change in risk, nonpayment, or the insurer stopped writing homeowners policies. Tell your company in writing.

I rent my home. Does my landlord have to be on my daycare policy?

If you carry daycare liability insurance or a bond in a rented home or HOA property, you must name the owner or HOA as an additional insured if they request it in writing, adding them won't cause cancellation, and they pay any extra premium (HSC section 1597.531(b)).

What is abuse and molestation coverage and do I need it?

It covers defense and covered damages when someone alleges a child was abused in your care, including claims of negligent supervision or hiring. Many general liability forms exclude it unless it's added. We recommend it for every child care provider.

Do I need workers' comp for a daycare assistant?

Yes. California Labor Code section 3700 requires every employer to secure workers' compensation, and an assistant on payroll is an employee.

How much does daycare insurance cost in California?

It depends on your license type and capacity, ages served, hours, pools or play equipment, transportation, staff and payroll, limits and claims history. We quote it from those factors. Call (209) 670-1556.

Related reading:

• Lee esta guía en español: aseguranza para guardería con licencia
• Do I need workers' comp in California?
• General liability insurance
• Nonprofit insurance (for nonprofit centers)

Insurance City Agency — Stockton 956 W. Robinhood Drive, CA 95207; San Jose 25 N 14th St Ste 125, CA 95112 — (209) 670-1556. CA License #6003045. Reviewed by Santo Militello, CA License #1737723, California-licensed agent and owner. Our licensed team brings more than 70 years combined experience in insurance. Licensing requirements are set by CDSS and the Health and Safety Code; confirm your status with your licensing analyst. Coverage is subject to each company's underwriting and policy terms. Last reviewed 2026-09-28.