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 »


Category Archives: Private & Charter Schools

Important Trends In The Childcare & Nursery School Industry

If you are an executive director, or owner of a daycare/nursery school business it is important to be alert to important indicators within your industry. We found the following data through First Research, a provider of industry intelligence tools primarily to the private equity industry.


1. Demographics
The population of children in the target area for child care is anticipated to rise over the next 10 years. This will create a larger demand for child care services. It is predicted that the number of children under 5 will increase by 8 percent and the number of children between ages 5 and 13 will increase by 10 percent. ( Source: Bureau of Labor & Statistics )
2. Government Spending

Government spending has been increasing. Almost 35% of the child care industry revenue comes from government spending. ( Source: Bureau of Labor & Statistics )

3. Real Time Online Surveillance

Centers throughout the nation are now using online video to allow family members to watch their children from their computers. Parents are not able to hear what is happening but can see their children in real time. It is anticipated that more and more child care centers will implement this technology even though there are some privacy concerns. ( Source: Risk & Insurance Management Society)

4. Nannies Are Strong Competition

Nannies compete directly with child care centers. They typically work 40-60 hour weeks and make an average of $500 per week. They do not typically live on the premises. (Bureau of Labor & Statistics)

Consider Also The Following:
  • U.S Personal Income rose over 5% in March 2011 compared to the same month in 2010.
  • Employment at U.S child care facilities rose 1% in Feb. 2011 compared to the same period in 2010. This followed a 1.3% increase in January.
  • Overall U.S employment rose .7% in January and 1% in February.
  • Total revenue in the United States for child care services rose over 6% in the last quarter of 2010 compared to the same period in 2009.
  • The price of crude oil, which has an effect on the energy costs of child care facilities, rose 32% in the first week of May 2011 compared to the same week in 2010.

Employment (which is an indicator of demand) and revenue are rising. These are key indicators considering when more people are working that means more people need to send their kids to daycare which should  lead to increased demand for daycare & nursery school placement.

We hope you found this information helpful.  Of course none of this information is relevant if your facility suffers a loss that is not fully covered by your nursery school Insurance child care insurance and day care insurance . Contact Risk Advisor or visit our website at  Metropolitan Risk Advisory for a free coverage analysis. Chances are this review is years over due.

Highest Paying States For Executives Directors of Nursery School & Day Care Facilities

Congratulations if you have the foresight of living and working in New York and are an Executive Director or Administrator of Child Care Services that plan, direct, or coordinate the academic and non academic activities of preschool and childcare centers or programs. This job title does not include nursery school or preschool teachers. Of course if you think this is valuable information, contact a risk advisor to find out which insurance carriers offer the most coverage for the lowest rates. We would love to share that with you too!

Top Paying States For This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

State Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
New York 3,910 0.47 1.18 $32.41 $67,400
District of Columbia 380 0.59 1.48 $29.41 $61,160
Massachusetts 1,940 0.62 1.56 $27.93 $58,090
Illinois 2,520 0.46 1.14 $27.49 $57,190
Rhode Island 150 0.33 0.82 $27.19 $56,550

Top Paying Metropolitan Areas For This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

Metropolitan area Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
Flint, MI 100 0.83 2.07 $41.49 $86,300
Tampa-St. Petersburg-Clearwater, FL 40 0.04 0.09 $40.83 $84,920
Vineland-Millville-Bridgeton, NJ 40 0.60 1.51 $36.08 $75,040
Lowell-Billerica-Chelmsford, MA-NH NECTA Division 100 0.85 2.12 $35.84 $74,540
West Palm Beach-Boca Raton-Boynton Beach, FL Metropolitan Division 50 0.10 0.24 $35.61 $74,070
Visalia-Porterville, CA 30 0.26 0.65 $34.95 $72,690
New York-White Plains-Wayne, NY-NJ Metropolitan Division 2,650 0.53 1.33 $34.95 $72,690
Brockton-Bridgewater-Easton, MA NECTA Division 60 0.66 1.65 $34.79 $72,370
San Francisco-San Mateo-Redwood City, CA Metropolitan Division 480 0.50 1.26 $34.40 $71,560
Nassau-Suffolk, NY Metropolitan Division 510 0.43 1.07 $33.39 $69,450

Non-Metropolitan Areas With The Highest Employment In This Occupation: 

( Source: Bureau of Labor & Statistics – As of May 2010 Data) 

Nonmetropolitan area Employment(1) Employment per thousand jobs Location quotient (9) Hourly mean wage Annual mean wage (2)
Northeastern North Carolina nonmetropolitan area 270 1.53 3.83 $24.43 $50,820
Western Central North Carolina nonmetropolitan area 160 0.65 1.64 $20.09 $41,780
Other North Carolina nonmetropolitan area 150 0.51 1.28 $20.11 $41,830
Northwest Mississippi nonmetropolitan area 130 1.26 3.17 $32.15 $66,880
North Coast Region of California nonmetropolitan area 110 1.14 2.86 $20.36 $42,360

How Nursery Schools & Non Profits Are Saving Money, Increasing Productivity With Google Apps

Let me first state clearly and emphatically I have no horse in this race. I am approaching this topic purely from a philanthropic, and business acumen standpoint only. Now that the housekeeping is done let me share with you the main point of this article and it’s not necessarily that I love Google, (I do); the point is there are so many new tools on the market that can help a small nursery school, struggling non profit, or a multitude of small businesses grow, become hyper efficient, raise funds, track donors, communicate and collaborate with constituents, parents, donors, board members, whoever, FOR LITTLE TO NO COST!

Let me also state we practice what we preach as we use Google Tools all throughout our organization as well as products from 37 Signals which is also a fabulous resource for most small businesses. For those keeping score at home this is the third company I have had the pleasure building. My last one I helped grow to $50 mill a year in sales before I wanted to embark on a different set of challenges. In that prior company we had the following cost we incurred while maintaining a technology infrastructure that supported 35 employees.

 Old School Infrastructure:

Microsoft Exchange Server – 500 Gigs $10,000

Software License for Exchange – $ 5,000

Maintenance of Exchange Server – $ 3,500 a year

In- House WIKI ( Company Knowledge Base housed on internal servers using VM Ware) – $3,000

Company File Server $ 5,000

Tech To Maintain Whole System: $ 15,000

Please note I am leaving a lot out here as the list would be really long, like all of the Microsoft software licenses we had to buy, install and maintain. Down time dealing with viruses, spam, e.t.c. , as well as the limitation of having most of the data not be collaborative. 

 New  School Infrastructure :
Google Apps is a zero cost full suite of applications that lets students, faculty, and parents work together more effectively. No cost and no hardware mean money saved for more important things like books and fundraising. Schools that implement Google Apps can save up to 90% on their IT costs. In addition to lower costs, below are 7 reasons why Google Apps rocks:

  1. Google Docs – The word processing application gives students the chance to work on the same document at the same time from anywhere in the world. No more USB keys! Docs also includes spreadsheets, presentations, drawings, and more.
  2. Gmail – An elite email service for free
  3. Calendar – The class calendar can be accessed from anywhere at anytime.
  4. Google Sites: Which let you build Internal Wikis / Sites for Fundraising / Information Sites to communicate with Boards, Donors, Parents
  5. Security and Privacy– Google takes these very seriously
  6. Easy to use – Almost no installation
  7. Students Love It – Gmail and Google Docs make learning fun for students. Check out this video to see why.
  8. Help Resources – Check out the Google Apps for Education community group .
Old School Infrastructure Cost : $41,500 ++ ( many of the costs reoccurring)  / New School Infrastructure Costs: $ 0
When we had to make technology choices starting the new company the first cost we saved tremendously on was email. By migrating to Google Apps Professional edition we could maintain my websites URL within my email domain instead of using gmail. Our  preference was to have our web site URL not  “gmail” attached to the end of our emails as GMAIL does not give the professional image we want for the business. Thus we use the professional edition which costs a whopping $50 per user!
To be fair, Steve Ballmer and crew still exact their pound of flesh from us as we still use Microsoft Products & Apple Products, however this is by choice not by necessity. A non profit or small nursery school that sweats out computer repairs, software license e.t.c. can do away with all of this. Further by bringing everything to the cloud you no longer have to maintain any of it. You get to focus on your business and not fight with technology. That was the biggest advantage for us.
Further our employees can easily work from home or remote sites without hiring a tech to build a VPN (Virtual Private Network).
If you have a legacy system  and data you need to deal with we recommend  hiring a tech to help you migrate all of your data and do the set ups with Google, especially if you will go with the Pro Edition. If you are a new Non Profit, Nursery School, or small business and starting essentially from scratch this is the perfect platform to begin your new venture. Your internal cost structure will ultimately be a fraction of your competitors which is ultimately a key driver of your success.
We will in subsequent articles feature and profile new tools to help you achieve your goals at a fraction of the cost. Why do you ask would I do this as we are “insurance people”? Excellent question grasshopper! Our goal as an organization is to help our clients efficiently and most cost effectively deploy their resources so they can compete better in their native markets. Assessing, managing risk, buying insurance at the lowest  cost point possible  are all consistent with the company objective at Metropolitan Risk Advisory.

Whether you are a day care, a nursery school, or even a college, using a tool like Google Apps can save you money and improve your efficiency. Here at Metropolitan Risk Advisory we practice what we preach as we use Google Apps to run our business. We hope you found this article useful. If you found this valuable please leave a comment to inspire us to keeping writing and sharing. On behalf of the staff at Metropolitan Risk Advisory, thank you for putting others first!

The Results of a 25 Year Study on Early Childhood Education

There was a study conducted over 25 YEARS (yes years) about the benefits of early childhood education programs. The study was published on June 9th, 2011 by Arthur Reynolds (professor of child development) and Judy Temple (professor at the University of Minnesota). The study ended up with overwhelmingly positive results for early childhood programs.  It followed more than 1400 participants, mostly African American. Some of the results for those who participated in these programs are summarized below.

  • 28% fewer were incarcerated or jailed
  • 9% more completed high school; 19% more males
  • 20% more achieved at least a moderate level of socioeconomic status
  • 22% fewer had a felony arrest while the difference was 45% for children of high school dropouts
  • 28% fewer abused drugs and alcohol
  • 19% more carried a level of health insurance coverage

One of the biggest shocks was finding that children who participated in the CPCEP graduated high school on time 55% more than those who did not participate in the program. Lastly, according to this study, the cost benefit analysis of early education resulted in an 18% annual return on investment for society.

What do we take away from this study? That early childhood education is a great investment for society and that not enough money is ending up in these programs. In fact, Only 3% of the $14 billion dollars allocated to school districts under “No Child Left Behind” goes to preschool. That number seems drastically low for a system with such great benefits to society.

For more check out the study in “Science” or the  article from the New York Times which was the original source for this piece. If you represent an early childhood education program we appreciate your hard work which is why we make it a priority to protect your efforts. At Metropolitan Risk Advisory we specialize in childcare insurance, day care insurance, nursery school insurance, and non profit insurance in the greater NYC area. Our risk management techniques will protect your children and facility resulting in lower costs which can then be re-deployed on more important things, like  teachers & children not insurance premiums!

Hot Tips On Finding Public Money For Your Non Profit Or For Profit Business

As a working business or non-profit you should always be on the lookout for opportunities to receive grants. This article will serve as a general overview on how to locate and take advantage of this public money.

Who is Eligible?

Not all business are eligible. For federal grants you must be in a business that is “promoting the public good.” Non profits certainly fit that criteria. State and local governments have a wider range of acceptance but non profits are still a main beneficiary. If you are not sure if you qualify call up the program officer on the announcement to find out. Lastly, remember that once you receive the money you are typically limited in how you can spend it.

Where Should You Look?

Government websites such as push out notices of available funding. You could also sign up for various e-newsletters that will alert you of grant opportunities. In addition to federal grants, state and local governments give out money as well. Search for your state’s grants online. For example if in PA go to . Look for the RSS orange symbol stand that stands for Really Simple Syndication. I love sites that offer this. If you have a reader like Google Reader, every time the site is updated it kicks the feed to your reader. The advantage being you go to one place to pick up new and alerts from all the different websites like this one that may have posted a new article. For grants, these are invaluable tools because you don’t have to troll to 20 different sites one at a time to see what’s new. The 20 sites you subscribe to send their updates to you. Try it with our site. To sign up look on the top right corner of our home page where it says subscribe.

How to apply?

Applying is usually very basic. Give the details about your business, your goals, what you would use the money for, and other sources of financing. Federal apps require more paperwork such as a copy of the previous years financial audit and a statement about your accounting practices.

We recommend that you be specific. Back up your argument with research. Explain the good that will come from the money and use numbers to support your argument. “This money will lead to ___ more beds for the elderly” etc. Facts are the most important part of the application.

Who can help you?

Grant writers are available to help you with your application. Some charge a flat fee and some charge by the hour. These writers can cost several thousand dollars and unfortunately still have to be paid if you do not win the grant.

Be aware that scammers exist. Never pay a writer that wants a commission if your grant is approved or one that is promoting free money. Go to a professional and remember there is no reason to pay for information about the grants themselves because it is all obtainable online.

At Metropolitan Risk Advisory we can help you as well. We specialize in non profit insurance and risk management techniques that will lower your costs. Have an insurance question, or want a second opinion on how cost efficient your insurance program is? Call us for a free consultation and let us help you save thousands.

Quick Tips On How To Compete In The Nursery School Day Care Space

Commercial day care centers & nursery schools often face difficulties due to the competition from non profit day cares such as churches and after school programs.  Their cost structures are better because they can subsidize tuition and enrichment programs through donations from their congregation, grant writing, federal & state subsidies. If you are a Non Profit Nursery School, or Child Day Care Facility, understand that your local competition who cannot subsidize their tuition will try to position their facility through the use of enrichment programs to compete on child experience rather than tuition costs.

To better compete, think about implementing some of the following enrichment programs that can give your school or facilities a value edge :

Education Testing
Foreign Language Classes
Martial Arts
Theatre Programs
Gyms (Indoor)
Dance Programs

Parent Lecture Series

Supervised Playgrounds

These are just some amenities that will make your program more appealing against your local competition. If you can’t compete on cost, position your program as a well rounded “educational experience” which has more of an emotional pull to parents than cost might.

You can further lower your cost structure and give your facility a competitive edge by implementing risk management techniques which substantially lower your insurance costs , often far less than your peers who don’t have risk management for nursery schools or risk management for day care facilities in place. For more advice contact an advisor today at Metropolitan Risk Advisory. We specialize in the needs of child care and day care facilities. We can also help increase your profit margins with day care insurance and targeted risk management techniques.

The Reward of Risk Management v.s. Simply Buying Insurance for a Non Profit

I was recently reading an op ed piece in the NY Time entitled A Bad Deal on Malpractice . Whether you agree with their premise is not the point. What was interesting to someone who practices risk management is the enormous moral, social and financial benefits from using smart techniques and risk management protocols within your Non Profit Organization.

The article referenced New York Presbyterian Hospital/ Weill Cornell Medical Center and the enormous improvement they have seen in their malpractice claims when they simply stopped buying and paying for insurance and began to look at the correlation between the cost of their malpractice claims, insurance costs, patient care, and  employee moral. By utilizing the time tested techniques of risk management they achieved amazing results. Simple things like focused staff training after polling staff and doing a simple trend analysis as it relates to their losses and claims, electronic documentation, and follow up. The hospital focuses on collecting the right data, reading what the data results, and then taking sustainable corrective action.

The amount the hospital spent annually for compensation payments and legal expenses to defend allegations fell by more than 90%. From 2003 to 2006 there average expense load was $27.59 million between 2003 and 2006. By 2009 costs fell to $250,000 in 2009, a remarkable drop of 99% reduction in losses. Folks, you don’t achieve that kind of result by taking your poor claims history, giving it to 4 brokers and have them come back to you with 4 insurance quotes, whereby you pull the trigger on the cheapest one. If your claims are bad enough the end result of your effort is the least of the highest price increases. Remember  insurance companies don’t like to lose money and insurance for the most part is simply a very expensive credit line.

You don’t have to be the size of New York Presbyterian, nor do you need to have their resources. If you are a small NY Non Profit, a NY Nursery School, a NY Group Home, or a NY Supportive Housing Non Profit, same goes for NJ Non Profits & CT Non Profits;  you have so many opportunities to reduce costs and losses sometimes by as much as 90%. Remember every dollar we save on the expense side can be allocated to your constituents. The key is to simply stop buying insurance and talk to an insurance brokerage firm that has a background in Risk Management. A talented insurance brokerage firm can help you identify the fricitional points on your balance sheet, and then come up with smart, intutive strategies to re-capture these critical resources so you can re deploy them  back into your Non Profit Organization.

For those of you nodding , who believe that this is not just possible, but an absolute neccessity for your non profit we would like to suggest you call a Risk Advisor at Metropolitan Risk Advisory, anyone that practices the craft. We also suggest taking a hard look at your workers compensation insurance as we have found that to be a very rich area of ours since many non profits can be labor intensive , riddled with employee injuries, surcharges, incorrect experience modification factors, and error laden workers compensation payroll audits.