Child Care Insurance Horror Story: How I Fought a 30% Rate Hike

Let me tell you a story about a Maryland childcare business owner I helped. It's a story about big wins, unexpected setbacks, and how the right broker can help you stay in control—even when things get bumpy.

This client went from a non-renewed policy and skyrocketing premiums to saving thousands of dollars and regaining flexibility in their program… only to get hit with a 30% renewal hike the very next year.

If you own or operate a childcare business, this story might feel a little too close to home. The last few years have been very difficult in the childcare insurance marketplace. And that’s exactly why I want to walk you through it—because what happened next is where the real lesson begins.

Year One: From Non-Renewed and Overpriced to Better Coverage and Big Savings

The story starts with a phone call. The business owner had been non-renewed by their prior carrier and ended up in a last-resort insurance program that was outrageously expensive.

Their premium had doubled from the year before—and worse, their policy came with major restrictions. Most notably: no off-premises coverage.

That meant no field trips. No park days. No pool visits. Everything had to stay within the four walls of their center. And for a business built around enrichment and engagement, that was devastating.

That’s when we stepped in.

We reviewed their policy, assessed the exclusions, and found them a new insurance program that not only saved them 30% to 50%—it also gave them back the flexibility they needed. Field trips were back. The kids were out exploring again. The staff had breathing room. It felt like a win across the board.

And on top of that, we lowered their workers’ compensation premium as well.

But then came renewal season.

Year Two: The Unexpected Gut Punch at Renewal

The next year, things took a turn.

My team flagged the renewal notices early. The workers’ compensation premium had jumped 20%, and the property and liability package was set to increase by 30%.

It felt like a bait-and-switch—even though it wasn’t. This wasn’t some scam or trick. It was a hard market response from the carrier. But it was still frustrating, and it required immediate action.

So, we got to work.

How We Handled It—and What You Should Expect from Your Broker

The first thing we tackled was the workers’ comp renewal. My team reached out to me and said, “Daryl, this is going up by 20%.”

That didn’t line up with what we were seeing in the marketplace. In fact, most renewals for childcare businesses with no claims were flat. So we went back to the underwriter and asked why.

Their response? “You need to fill out this safety questionnaire before we can do anything.”

Meanwhile, we’d already obtained a competitive quote from another carrier—one that came in $1,000 less without requiring extra paperwork.

So we let the incumbent carrier know: we have another option, and we’re ready to move forward. They held their position, so we made the switch.

Problem solved.

But then came the 30% increase on the property and liability insurance. And that one was trickier.

Why Childcare Insurance in Maryland Isn’t Simple

If you run a childcare center in Maryland, you already know there aren’t dozens of carriers lining up to insure your business.

It’s a niche market with limited availability. There are a few carriers who do a great job, but most others either don’t write childcare centers or attach major exclusions when they do.

In this case, we’d already spoken to all the viable alternatives the year prior. None of them had changed their appetite, so there wasn’t an easy switch to make.

But here’s the thing: the underwriter didn’t know that.

And the underwriter did want to retain the account.

That gave us leverage.

Using Leverage the Right Way: No Bluffing, Just Transparency

We approached the incumbent carrier with a clear message:

“We respect the relationship, and we value the work you’ve done—but a 30% rate increase isn’t going to fly. We believe a 15–18% increase could be justifiable based on market conditions. Can you come down by $1,000 and help us sell this renewal?”

The underwriter responded thoughtfully:

“I want to keep this account. I can’t come down $1,000, but I can come down $750.”

That may not sound like much—but that $750 reduction brought the total increase from 30% down to about 20%, and in this market, that mattered.

We brought the updated quote to the client, walked them through the options, and made sure they understood:

• Workers’ comp was getting replaced with a lower-cost carrier.

• Package policy was staying put, but at a negotiated rate reduction.

What the Client Said: Gratitude for Being Proactive

I ended up having four conversations with the client during that renewal. Normally, it’s one or two tops. But this time, we had to dissect each line of coverage separately and talk strategy.

In every conversation, the client’s response was the same:

“Thank you for being out in front of this. I’m so glad someone is watching our back.”

They understood the market was tight. They knew we couldn’t conjure up new carriers out of thin air. But they appreciated that we weren’t passive. We used every tool available to advocate for them.

The Takeaway: You Can’t Always Control the Market—But You Can Control the Process

Sometimes premiums go up. Sometimes carriers change their underwriting appetite. Sometimes the options are limited.

But you should never feel like you’re navigating it alone.

What makes the difference is having a broker who:

• Flags issues early

• Knows what options are available in your market

• Has real conversations with underwriters

• Brings back alternatives—or negotiates better terms where possible

In a tough insurance market, you don’t win by quote-chasing. You win by building relationships, creating leverage, and communicating clearly.

What You Should Do If You’re Facing a Big Rate Increase

If you’re a childcare business owner and your renewal is coming up, here’s what you can do:

1. Start early. Don’t wait until 30 days before renewal. Give your broker 60–90 days.

2. Ask the hard questions. What are the alternative carriers saying? What’s driving this increase?

3. Review exclusions carefully. What’s covered—and what’s not—might matter more than price.

4. Work with someone who knows your industry. The right broker doesn’t just get quotes—they negotiate, push back, and protect your program.

   
   

Final Thoughts

I don’t share this story to brag—I share it because this is what insurance should look like. Not just quoting and binding, but advising, advocating, and adjusting.

So if you’re staring down a renewal and something feels off, don’t panic. Take control.

And if you don’t have a broker who’s doing that for you, I’d be happy to talk.