$10 Daily Daycare in Ontario: the good, the bad and the risky

By: Markel Canada

Finding a high quality, safe and well-managed childcare option can be a stressful process for parents; with so many choices and the added anxiety of there not being enough spaces for parents to place their kids, the decision to prioritise availability comes with some risk.

Childcare is an expensive proposition, and often a critical and necessary service for families. Historically, many childcare options have been priced beyond reasonable affordability and can create a financial burden on family living expenses.

The agreement between the federal government and Canadian provinces in July 2021 to introduce $10-a-day childcare was a welcome relief for many. While most provinces have launched programs to make childcare more accessible nationally, there are still issues with the lack of capacity. With subsidies assisting the operation of daycare, it is the hope of many that childcare providers are properly compensated with a fair living wage for their important work in helping care for our loved little ones.

This program is based on efforts by the Government of Canada from 2017 to 2020 and subsequent agreements made with 13 provinces and territories to promote the Canada-wide Early Learning and Child Care System. This system aims to provide families with access to high-quality, affordable, flexible, and inclusive early learning and childcare no matter where they live.

The financial impact on families struggling with the cost of childcare can be significant. For families in Ontario, the Canadian Government predicts the annual savings per child at $10 per day can be over $9,000 per year – a welcomed break as inflation continues to increase across the country.

While savings on daily daycare is great news for Canadians, it's still important for parents to do their research when choosing a childcare facility. Markel Care insurance expert, Ula Rybicka indicates that these should be on everyone’s consideration checklist:

• Licensing – is the day care licensed with the relevant provincial licensing body
• What was the outcome of their most recent licensing inspection – were there any concerns raised or requirements for improvement
• Medical, including whether they have certification to perform standard first aid practices
• Experience, years that a day care has been operating
• Reference, online and supplied testimonials
• Size, number of children a daycare will accept and ratio of child to care giver
• Ages, minimum and maximum, that a daycare will accept
• Sickness, what protocols are in place for sick children or practitioners
• Allergy precautions for known or unknown allergies
• Insurance, any claims, or lawsuits
• Playground, type of equipment, injury history and age appropriate

Another key piece of research is to inquire on the daycare facilities’ insurance plan. It’s important to know how they’ve been rated and whether they’ve had any issues with claims, lawsuits, or complaints. The good news is that this information is readily available if you know where to look for it.

A key part of the Government’s plan to offer affordable high quality child care requires that the facility is registered with the provincial Government in order for it to qualify for the $10 a day incentive. In Ontario, each registered facility is subjected to regular inspections and the reports are subsequently posted and available for the public to access, review and use to make an informed decision. This is good news for childcare business owners and operators as well; if they run a quality facility they qualify for care-focused insurance coverage that provides additional assurance to parents and families.

It’s important for operators of childcare facilities to consider coverage that includes modular coverage like casualty, abuse, professional liability, property, and crime can bring peace of mind to an owner that they’re covered for what they can’t anticipate. Further, some insurance policies come with additional benefits of helping improve the organization’s policies, procedures and practices, a legal help line to help with difficult complaints and allegations, and premise inspection services to assess site risks help ensure that the facility can be proactive and embrace continuous improvement are also key considerations for operators.

Parents have the power to audit the facility they choose to send their children to, ensuring it has access to the above protection and knowledge that the facility must be registered with the Government’s program to get this kind of coverage to begin with. Businesses need to ensure they promote themselves as a high quality and safe place for families to send their little ones. Having the right insurance coverage isn’t only good for business, it’s simply becoming standard practice.

Talk to a Markel underwriter to learn about how the proper insurance coverage can help support your client’s businesses. At the same time providing families with the reassurance that their children are spending their days in an environment that is run and managed responsibly with their best interests in mind.