Times are fiscally tight in the for-profit world of childcare as well, and insurance is among the first line items that childcare providers think they can drop—and an unregulated childcare facility is able to do so without any state government intervention, says Linda Smith, executive director of the National Association of Child Care Resource & Referral Agencies, in Arlington, Va., which works with more than 600 state and local childcare resource and referral agencies nationwide.
Indeed, unregulated childcare across the country is putting pressure on the cost of childcare inside the regulated system, Smith says.
“In order to compete with all the unregulated childcare centers, regulated centers are having to keep their prices down. But that means no investments in equipment and training and all the elements that make a good program,” Smith says. “Many of them also are not buying insurance for that reason. Depending on the state, insurance is most likely not required, so it's up to the individual owner to buy liability. If they're not registered, they aren't doing that.”
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
