01.09.07 - Insurance Responsibilities

Insurance Responsibilities Policy Number and Last Update

IMSHS delegate agencies are required to carry five (5) basic types of insurance for the programs, which can be obtained through a local insurance agent:

  1. Liability - As per the Department of Children & Family Services Part 407: Licensing Standards for Day Care Centers, Section 407.9(k), "the facility shall carry public liability insurance in the single limit minimum amount of $100,000 per occurrence".
  2. Accident - There are several groups which specialize in Student Accident insurance for schools and day care centers, among them Hartford. Check with your local insurance agent. Your premium will be determined on a "per child" basis. This "exposure rate" is determined from your highest enrollment, and of course, as with most insurance, the premiums are increased if claims are high. Check on the fee for adding employees to the package; the fee may be small enough to warrant the additional coverage beyond Workman's Compensation.
  3. Property - In most cases, the coverage needed here is basically "Renter's Insurance", for equipment and supplies. It should cover at least theft, fire, and vandalism. However, the delegate agency should check its lease carefully and consult with its landlord to be aware of how the building is covered.
  4. Bus - Full coverage on buses is recommended; however, consult with your local insurance agency on this. 
  5. Workman's Compensation - This coverage is required, and is also obtained through the delegate agency's local insurance agent. The premiums are based on the amount of the agency's payroll. The exposure rate is different for the different job classifications, with transportation staff (bus drivers, bus aides) at the highest rate.

A word about risk management: in all cases, we want to offer employees a safe working environment. IMSHS delegate agency boards and center directors should have an awareness of the risks inherent to their physical facilities and program plan, as providing day care presents its own risks. Check with your local insurance agency about the cost of and possible need for them to do a risk study of your program, the result of which should indicate to boards and directors, what risks exist in their program and which can be controlled and/or corrected, and how to do so.

Unemployment Compensation Insurance

As employers, IMSHS delegate agency programs must pay unemployment compensation insurance. The main office for getting questions answered or help with this insurance is:

Illinois Department of Employment Security
401 South State Street, 6th Floor
Chicago, IL 60605

All delegates should request a copy of the current "Guide to Illinois Unemployment Insurance Act" from this toll-free number. This guide will give you information regarding your responsibilities to workers, filing reports, and penalties.

The IMSHS non-profit delegate centers are liable to pay unemployment compensation insurance because during a calendar year they employ four or more workers,full or part-time, on any one day within each of 20 or more different calendar weeks. 

Following this section is a copy of the Form UC-3/40 which should come to the center with the rates that apply to you indicated by the *(s). Your rates are indicated for you by Employment Security. Note that the rate changes when your total wages for the quarter are $50,00 or more. You must complete this form, according to the instruction, quarterly and submit it with your payment to the address above. For filing instructions, see "filing reports" under "General Instructions" on the form. Following are the quarters and due dates as defined on Form UC-3/40:

1 Jan/Feb/Mar April 30
2 Apr/May/Jun July 31
3 Jul/Aug/Sept October 31
4 Oct/Nov/Dec January 31

A copy of this report is to be retained each quarter, in the center's files. This report must be filed every quarter of every year, even for off-season quarters when the center pays little or no wages (see the "Filing Reports" section of the "General Instructions" on the form.)

Please take special note of the instructions on pgs. 50-59 of the current "Guide to Illinois Unemployment Insurance Act", which is Chapter IX - Non-Profit Organizations.