How to Open a Daycare

We have compiled licensing procedures for New York City. Make sure to follow your state’s specific requirements. Regardless this will give you a general idea of what you will have to do Read More »

What Daycare Owners Must Know About Lead Based Paint

The most common cause of childhood lead poisoning is the dust that comes from lead based paint. While lead paint was banned for NYC residential use in 1960, and nationwide in 1978, Read More »

How to Manage Abuse & Molestation Risks – Part 1

Above all else a school’s primary responsibility is to keep their children and teens safe at all times. Unfortunately this is not always the case as during the past few years several Read More »

Proper Insurance Claims Follow Up Procedures Yield Big Dividends for Schools & Non Profits

If you read our first article in the series “Managing Insurance Claims First Reports Can Have Big Impact  for Schools  & Non Profits” then you know that it’s a two part process, Read More »


Managing Risk & Insurance Costs for Adult Day Care Facilities

Opening an adult day care center is a worthwhile pursuit, as owners help family members of disabled or aging relatives meet their obligations. Overall, adult day care leads to a more balanced life for everyone involved. Due to the aging population, this is a growing industry and there has been a 35-percent increase in facilities since 2002, with over 260,000 participants served. The cost for Adult Day Care Services are rising too. According to the blog INSURANCEFORNONPROFIT.NET New York leads the way at an average cost per month of $1,950 a month; New Jersey is second at an average cost of $1,842.00. Still, there are shortages in the industry and, in fact, 29 percent of current adult day care facilities have waiting lists. Overall there is a lot of urgency for these businesses, but entrepreneurs should review vital criteria to do things properly, protect themselves and their businesses,  managing  risks properly to keep unnecessary costs low.  

Risk Management for Adult Day Care

Adult Day Care Business Information

Though customer base in adult day care are diverse, with differences in ages and abilities, the typical participant is 65 or older. They frequently suffer from dementia or a physical disability that require constant care or assistance with activities of daily living (ADL) which puts pressure on the Adult Day Care staff.

Because this is a thriving industry and communities need these services, there are many excellent resources available, and these include grants for startup funds and both state-level organizations and National Adult Day Services Association (NADSA). State leaders can provide a lot of detailed information about rules and regulations for each specific state, and NADSA offers mentoring and networking opportunities and a library of useful information as well as a community listserv and discounts for products needed for the business.

Strategic Partnerships Yield Lower Insurance Costs

When starting an Adult Day Care facility or program it’s best to build strategic partnerships with experts in the field so your mistakes and education won’t be so expensive. Doing it right from the outset is far less costly then getting it wrong. Correcting the issues will require the Adult Day Care director to re-engineer & re-train; at a cost. In fact, according to John Hague, a Risk Advisor at Metropolitan Risk in Irvington, NY, “Setting detailed internal policies and training protocols with your Adult Day Care staff will pay huge dividends as your Adult Day Care facility and staffing levels grow into the company’s safety manual and reduce or eliminate some of the growth challenges adult day care businesses face.”

Adult Day Care Growth and Workmen’s Compensation Insurance 

As the business grows and employees are added, having an expert risk management professional to discuss business insurance needs and workmen’s compensation challenges will focus the business on containing costs and using the right resources to help them grow the business while controlling the risk related costs that ultimately rise is such a risk laden industry.

Though starting an adult day care facility is not a simple task, it can be a very satisfying one as lives are changed for the better due to the services provided. Further, keeping an adult day care center profitable has its challenges, but taking advantage of the many resources available to adult day care center owners can make the difference between success and failure. Additionally, assessing and addressing risks in advance with someone knowledgeable and committed to the business’s success guides the business to success as well.

Due to the high labor component in the Adult Day Care space employee injuries can really drive costs. Unexpected worker’s compensation claims can be an extremely expensive lesson for a business owner not prepared for or anticipating it. According to John Hague at Metropolitan Risk, “ time spent on the up front training, educating and monitoring new and existing employees through a tight HR process can lower the cost of the inevitable employee injuries by up to 40%.” Speaking with a Risk Advisor specializing in adult day care facilities will yield substantial future dividends.  They can offer real solutions for adult day care workmen’s compensation, general liability or commercial auto insurance  as well as  other risk challenges . Don’t simply buy insurance. Focusing on risk management practices should be on the owner’s checklist of vital tasks to handle before the very first participant enters the adult day care center. More questions? Reach John at (914) 357-8456 or CLICK HERE.


Cost of Adult Day Care In Metropolitan NY Region

Today information is both free and ubiquitous. I was curious about the cost of Adult Day Care in the various states in the New York Metropolitan Region. Big shout out to Genworth Financial and Care Scout for doing the heavy lifting in terms of figuring out the cost of adult day care in Metropolitan NY region. I was curious because we see huge differences in both the services provided and the insurances needed to properly run an Adult Day Care business.Adult Day Care Insurance

Take New Jersey for example. New Jersey’s Adult Day programs tend to be pretty sophisticated facilities in terms of the level of care and medical services provided. They tend to be staffed with more registered nurses than are certain Adult Day businesses in New York which are operated more as social clubs.

Where your Adult Day Care business is located is probably one of the largest determinants of cost. Primarily because their costs rise and fall contingent on their location. Both Labor and Real Estate costs are significantly higher the closer you get to New York City; Long Island and Northern New Jersey is no bargain either.

It’s not just the real estate and labor that drives costs. Workers compensation insurance for adult day care business are much higher in downstate NY than they are in upstate NY. It’s not just the rates but the ultimate compensation employees are paid down state result in higher workers compensation costs due to the increased payroll. Further when they suffer employee injuries the surcharges on the workers compensation premiums as applied by the experience modification factor for Adult Day Care increase exponentially. I am sure the reimbursements from the state don’t come close to reconciling this imbalance.

This is why it’s imperative that Adult Day Care operators remain vigilant when it comes to their unit cost structure when delivering their service. Insurance costs for Adult Day Care business’s should be an area of focus. Especially as worker compensation insurance for Adult Day Care business’s and commercial auto insurance if they are providing transportation.

We suggest partnering with an insurance broker that has resources to assist your growing Adult Day Care business so your education doesn’t become expensive. Not sure where to turn? We suggest you speak to a Risk Advisor.




Where to Start Your Next School in NYC

When deciding where to start your new school, child care facility, or any business relating to children, step number one should be looking at all the demographic data you can get your hands on. Would you rather place a new facility in an area with increasing demand, or decreasing demand? We have included a map below from the New York Times which outlines the fastest growing neighborhoods in the city for children 9 & younger. if you notice, outside of Manhattan the majority of neighborhoods have seen either no change or a decrease in children 9 & younger over the past decade.

Some of the fastest growing neighborhoods include:

  • Battery Park City has grown 129% in the past decade.
  • Lincoln Square Grew 51%.
  • Cobble Hill Grew 31%.
Use this as a starting spot in your research of where to open your new facility.

Major Risk Tip: Child Identity Theft

One issue that no one wants to face is identity theft. This year there will be about 10 million victims of identity theft and one third of them will be children & teens. That’s 3.33 million victims! They are considered an easy target because it may take years or even a decade before the theft is noticed. Child identity theft is one of the fastest growing ID crimes, having increased 300% in the past 5 years.

The average child victim is between the ages of 6 & 8. Typically families won’t discover their child was a victim until they apply for a drivers license, or for college loans & credit cards. Think about how often you give out your child’s social security number, or yours for that matter. Doctor’s offices, daycares, schools, & sports teams are just a few examples. If this information falls into the wrong hands damage can be done. The average identity theft results in $12,779 of debt and 44 hours trying to clear up credit.

While you expect hackers to be namesless & faceless, this is not always the case. Many hit close to home. Around 25% of victims claim that friendly fraud was responsible for the theft, meaning a close family member may have used a child’s name & social security number when applying for credit, buying a car, obtaining a loan, etc.

What can be done?
1. Ensure your child is not sharing their information online. Especially their social security number. Do they even need access to it? Young kids are more receptive to phishing scams.
2. Take precautionary measures by only giving out your child’s social security number when absolutely necessary.
3. Enroll in an identity theft prevention program like Identity Guard.
4. Look for the warning signs below.

Warning Signs!
Unsolicited Credit Card Offers – These typically come frequently after a credit inquiry/application has been filed.
Contacted by a collection agency – Must I explain?
First visit to DMV – Unpaid parking tickets?
Credit Applications Denied – Background checks, applying to a job, etc.

If you are a victim
1. Report it to the local police.
2. Call each of your credit card insurers. Get replacement cards.
3. Call the fraud units of the credit bureaus.
4. Keep a log of all conversations with authorities and financial entities. Follow up.
5. File an identity theft complaint with the Federal Trade Commission.

Preventing the Flu & Other Sickness as a Childcare Professional

I don’t have to tell you the flu is a major concern this time of year. If you’ve watched any tv, or known enough people, you’d also know it is particularly bad this year. Let this article serve as a quick reminder of how to prevent it the best you can for your kids. We’ve done our best to include statistics to keep you motivated. According to the Centers for Disease Control and Prevention twenty children have died from the flu this season nationwide.

As you can see below, unless you’re currently in Guam, you’re still at risk for the flu.

1. The single most important thing you can do is hand washing.

How important is it? A study of 305 Detroit students who washed their hands 4 times per day showed 24 percent had fewer colds and 51 percent had less stomach upset. When daycare teachers helped kids wash their hands every morning when they arrived, there were 50 percent fewer illnesses. Surveys say that greater than 50% of both males and females don’t wash their hands after using the restroom. It’s recommended that you wash your hands for at least 20 seconds.

Ok you’ve already lessened illnesses by 50% great job! Let’s keep going.

2. Clean toys, public areas, multiple times per day

Can you clean every inch of your daycare? No its probably not an efficient use of time. Clean the most likely area’s where germs can be transferred. Shared toys, railings, doorknobs, table tops, & bathrooms are prime to hold germs.

3. Enforce policy!

If a child is sick they must go home with their parents. It’s important to isolate sick children from the rest to prevent spreading of germs. Consider the 24 hour rule where even if the child is feeling better they are required to stay home for 24 hours from when they were sent home. This can be difficult for working parents but is important.

4. Educate the parents & children

Only so much can be done on the premises. Children can still get sick at home and bring it with them to your facility. Do your best to educate the parents on what they can do to prevent the flu. The includes at least considering a flu shot.

How to Open a Daycare

We have compiled licensing procedures for New York City. Make sure to follow your state’s specific requirements. Regardless this will give you a general idea of what you will have to do to get a child care center up and running. Procedures for an in-home daycare may vary significantly.

The Department of Health will assign an Early Childhood Consultant to assist you in the process. When the process is finished make sure to contact one of our risk advisors for all your daycare insurance and risk management needs.

Step 1 – Attend a Pre Permit Orientation Session. This will outline the rest of the process.

Step 2 – When you find a possible site for you business, notify Office for PHS inspection

What Daycare Owners Must Know About Lead Based Paint

The most common cause of childhood lead poisoning is the dust that comes from lead based paint. While lead paint was banned for NYC residential use in 1960, and nationwide in 1978, it has never been completely banned for use in commercial buildings. Because of this many daycare services may contain lead based paint.

If paint is peeling, chipping, cracking, or repairs are done unsafely, paint chips could spread easily. Young children can easily swallow lead dust from putting their hands and/or toys in their mouths. Young children are also the ones most at risk for lead poisoning,

Don’t worry though, lead poisoning has definitely declined over the past two decades, and there are precautions you can take to ensure you are safe. The below checklist is used for New York City daycares.

Part 2: 10 Steps to Prevent Sexual Misconduct

This is part 2 of our series on managing abuse and molestation risks. Read part one here on awareness.

Prevention is always the number-one goal with any risk exposure. So please consider the following steps to prevent or at least reduce the likelihood of these events occurring on your premises:

  1. Make sure you have  a Title IX Coordinator (if applicable). *Ask us
  2. You must adopt a “Zero Tolerance” approach regarding any act of sexual misconduct. No wiggle room!
  3. Go through all your organization’s existing training programs, policies and procedures regarding acts of harassment and sexual misconduct. Make necessary improvements while seeking not only to increase management and accountability but rather to set a standard for industry excellence.
  4. Develop and document clear reporting and investigative procedures for allegations.
  5. Develop a comprehensive prevention program with training, education, and awareness for all employees, especially those who provide supervision of children.
  6. Perform background checks on every person who would serve in a role involving children.
  7. Consider a policy of ongoing post-hire employee background checks as well.
  8. Evaluate any past incidents or allegations of sexual misconduct, and identify areas for response or risk management improvement going forward. *Ask us!
  9. Ensure you have multiple ways for the campus community to report possible acts of sexual misconduct or other wrongdoing.

Awareness +Training = Risk Reduction

Part 3 will feature the unfortunate yet necessary guide for how to respond to allegations.