Insurance Day: Care Becomes High Risk

Care Becomes High Risk

Besides causing untold anxiety for parents, the rash of child-abuse accusations against day-care centers during the past year is having a financial side effect. Insurance companies, which anticipate a wave of costly lawsuits from victims, have started drastically boosting the premiums they charge day-care centers. A neighborhood facility in San Antonio, for example, was abruptly informed by its insurance company earlier this year that the center's $600-a-year policy would be canceled. When the center took out insurance from another company, it cost $8,000.

While insurance companies point out that they are increasing premiums for many other types of liability coverage because...

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