Daycare license requirements guide from A to Z

If you love working with children, a daycare business is a logical choice. However, to safely care for children, you must comply with federal, state and local laws. You also must get a daycare license to operate a business.

Daycare license requirements vary significantly from state to state. From the number of children you’re approved to watch to facility requirements and professional training, requirements differ in each state and at the local level. While you will need to look up requirements based on the kind of business you want to operate, this article will give you an overview of standard requirements to consider when you start.

Jump ahead to learn about:

• Daycare operations: what is licensed vs. license exempt?
• What education and training do childcare professionals need?
• What daycare licensing requirements do most states have in common?
• Basic daycare provider requirements in every state
• How many children can one adult care for at a time?
• Which health and safety training is required?
• What insurance is required for daycare businesses?
• NEXT offers easy and affordable coverage for daycare providers

Daycare operations: what is licensed vs. license exempt?

Licensed daycares have gone through the formal process of obtaining a state or local government license. They must meet strict requirements regarding staff qualification, safety, hygiene, staff-to-child ratios, etc. These licenses offer peace of mind to parents and make daycare operators eligible for government subsidies or funding.

“License-exempt daycares” are daycares that aren’t required to obtain a license due to specific exemptions outlined by the state. For example, these could include:

• Care provided by relatives (i.e., grandparents or aunts/uncles)
• Facilities serving only a small number of children (varies by state)
• Programs operating for limited hours or purposes (after-school programs, religious-based care)

Exempt daycares are still expected to meet basic health and safety standards, but there is less oversight from the government.

Can you operate a daycare without a license?

In most states, you will be violating the law if you accept payment for taking care of unrelated children in your home regularly without a daycare license. Occasional babysitting isn’t considered under most state daycare regulations.

Daycares operating without the required license or meeting exemption criteria are operating illegally. Providers can face legal penalties (fines, shutdowns, jail time) for violating laws.

What education and training do childcare professionals need?

Generally, childcare workers must have a high school diploma or the equivalent to operate or work in a daycare center. Childcare workers can receive short-term on-the-job training.

However, many preschool and daycare center directors and owners often need a bachelor’s degree and on-the-job experience in early childhood education. They can also get a national CDA (Child Development Associate) credential.

What daycare licensing requirements do most states have in common?

While child daycare licensing for different sizes and types of daycare businesses are different across the country, each state has basic requirements for a daycare license, including:

• Supervision of children: Maximum number of children per childcare worker, maximum number of children per facility and per administrator or supervisor.
• Building safety: Emergency exits, repairs, safety and cleanliness.
• Health safety: Child immunizations, diapering for younger children, hand washing and sanitation.
• Food and nutrition: Food quality, storage and nutritional standards.
• Training and education: Minimum levels for licensed facilities.

Most daycare facilities in the majority of states are licensed based on the following factors:

• Age of children (zero to five, school-aged)
• Number of children served
• Type of daycare (home-based vs. community facility)

Basic daycare provider requirements in every state

State licensing board	License renewals	Minimum age to operate a daycare	Minimum liability insurance	Background check required?
State of Alabama Department of Human Resources, Child Care Services Division	Every two years	19	$500,000–$1 million per occurrence depending on capacity	Required
Alaska Department of Health, Child Care Program Office (CCPO)	Every two years	21	$300,000–$1 million per occurrence, depending on capacity (Anchorage only)	Required
Arizona Department of Health Services Bureau of Child Care Licensing	Every three years	21	At least $300,000 liability insurance	Required
Arkansas Department of Human Resources Divison of Child Care and Early Childhood Education	Every year	21	$1 million for centers, $100,000 for homes	Required
California Department of Social Services Community Care Licensing Division	Every year	18	Not required, but providers must have $100,000 per occurrence OR $300,000 bond OR keep signed affidavits from parents/guardians	Required
Colorado Department of Early Childhood	Every year	18	Pubic liability insurance (amount N/A)	Required
Connecticut Office of Early Childhood	Every four years	18	Workers’ comp only	Required
Delaware Department of Education, Office of Child Care Licensing	Every year	18	Proof of general liability insurance (large family care homes only)	Required
Florida Department of Children and Families, Office of Child Care Regulation	Every year	21	$100,000 per occurrence (school readiness program only)	Required
Georgia Department of Early Care and Learning	Every year	18	Not required, but notice of no liability insurance must be posted in facility	Required
Hawaii Department of Human Services Benefits, Employment, and Support Services	Every year	18	Liability insurance required (amount N/A)	Required
Idaho Department of Human and Welfare	Every two years	18	Proof of liability and fire insurance must be submitted with the license application	Required for anyone in household over 13
Illinois Department of Children & Family Services	Every three years	18	$300,000 per occurrence	Required for anyone in household over 13
Indiana Family and Social Services Administration	Every two years	21	Liability insurance required (amount N/A)	Required
Iowa Department of Human Services	Every two years	18	N/A	Required
Kansas Division of Public Health	Every year	18	Liability insurance required (amount N/A)	Required
Kentucky Office of Inspector General, Cabinet for Health and Family Services	Every year	18	$50,000 per occurrence (certified family child care home only)	Required
Louisiana Department of Social Services Bureau of Licensing	Every year	21	Liability insurance required (amount N/A)	Required
Maine Department of Health and Human Services	Every two years	21	$100,000 per person, $300,000 per occurrence, $5,000 property damage	Required
Maryland Department of Education Division of Early Childhood Development	Every two years	19	$300,000 in liability insurance	Required
Massachusetts Department of Early Education and Care	Every three years	21	Vehicle insurance only	Required
Michigan Department of Lifelong Education, Advancement and Potential	Every two years	18	Vehicle insurance only	Required
Minnesota Department of Human Services Division of Licensing	Every two years	18	Workers’ comp only	Required
Mississippi State Department of Human Services	Every year	21	Vehicle insurance only	Required
Missouri Department of Elementary & Secondary Education	Every two years	18	N/A	Required
Montana Department of Public Health and Human Services	Every year	18	Proof of liability and fire insurance must be submitted with the license application	Required
Nebraska Department of Health and Human Services Division of Children and Family Services	None after one year provisional license	19	Liability insurance required (amount N/A)	Required
Nevada Department of Health and Human Services Division of Welfare and Supportive Services	Every year	18	Liability insurance required (amount N/A)	Required
New Hampshire Department of Health and Human Services	Every three years	18	Liability insurance required (amount N/A)	Required for anyone in household over 10
New Jersey Department of Children and Families	Every three years	18	Liability insurance required (amount N/A)	Required
New Mexico Children Youth and Families Department (CYFD)	Every year	18	Not required, but notice of no liability insurance must be posted in facility	Required
New York OCFS Division of Child Care Services	Every two years	18	Liability insurance required (amount N/A)	Required
North Carolina Department of Health and Human Services	None after one year provisional license	21	Vehicle insurance only	Required
North Dakota Department of Health and Human Services	Every two years	18	Vehicle insurance only	Required
Ohio Department of Job & Family Services	None after one year provisional license	18	Liability insurance required (amount N/A) for Type A and B family child care homes	Required
Oklahoma Department of Human Services Early Childhood Services	None	21	$200,000 per occurrence; OR post notice of no liability insurance in facility	Required
Oregon Department of Education Early Learning Division	Every year	18	Liability insurance required (amount N/A)	Required
Pennsylvania Department of Public Welfare Office of Child Development	Every year	18	Liability insurance required (amount N/A)	Required
Rhode Island Department of Human Services	Every year	18	Liability insurance required (amount N/A)	Required
South Carolina Department of Early Care and Learning	Every two years	18	Not required, but notice of no liability insurance must be posted in facility	Required
South Dakota Department of Social Services Division of Child Care Services	None	18	Liability insurance required (amount N/A)	Required
Tennessee Department of Human Services, Child Care Services	Every year	21	Liability insurance required (amount N/A)	Required
Texas Department of Health and Human Services	Every year	18	$300,000 per occurrence	Required
Utah Department of Health & Human Services, Child Care Unit	Every year	21	Not required, but notice of no liability insurance must be posted in facility	Required
Vermont Department of Children and Families Child Development Division	Every year	18	Liability insurance required (amount N/A)	Required
Virginia Department of Education	Every year	18	$100,000 per occurrence, $300,000 aggregate; OR notice of no insurance	Required
Washington State Department of Children, Youth & Families	Every three years	18	Liability insurance required (amount N/A)	Required
West Virginia Department of Health and Human Resources	Every two years	18	Not required, but notice of no liability insurance must be posted in facility	Required
Wisconsin Department of Children and Families	Every two years	18	Liability insurance required (amount N/A)	Required
Wyoming Department of Family Services	Every year	18	Not required, but notice of no liability insurance must be posted in facility	Required

How many children can one adult care for at a time?

State requirements vary, but different age groups generally require different ratios of teachers and aides to children. The following guidelines cover best practices:

• Infants (zero to 12 months): One trained adult for three infants
• Toddlers (13–35 months): One trained adult for four toddlers
• Preschoolers (three years old): One trained adult for seven preschoolers
• Preschoolers (four years old): One trained adult for eight preschoolers
• Preschoolers (five years old): One trained adult for eight preschoolers
• School-aged (six to eight years old): One trained adult for 10 school-aged children
• School-aged (nine to twelve years old): One trained adult for 12 school-aged children

Some centers do not accept children younger than three years because of the requirements for diapering and feeding young children. Other educational programs like Montessori or private schools may care for children when they are potty-trained and can safely drink liquids without choking if they are younger than three.

Which health and safety training is required?

While each state has its own standards and regulations for health and safety, basic federal requirements cover all states. According to Childcare.gov, all adults caring for children in licensed facilities need to have training in:

1. Infant and child first aid and CPR
2. Prevention and control of infectious diseases, including immunizations
3. Safe sleep practices and prevention of sudden infant death syndrome
4. Prevention of shaken baby syndrome, abusive head trauma and child abuse and neglect
5. Recognition, reporting, and prevention of child abuse and neglect
6. Medication administration, consistent with standards for parental consent
7. Prevention of and response to emergencies caused by food and allergic reactions
8. Emergency preparedness and response for natural disasters and other events
9. Handling, storage, and disposal of hazardous materials
10. Indoor and outdoor safety, including protecting children from hazards, bodies of water and traffic
11. Safety when transporting children, if applicable
12. Child development

What insurance is required for daycare businesses?

Most states will require daycare insurance to obtain licenses, but various non-mandated types of policies can help protect your business.

General Liability insurance

General liability insurance can help cover various accidents and basic risks. You’ll have some financial protection if someone other than an employee gets hurt or you are held responsible for damaging property that doesn’t belong to you. State governments often require it.

Workers’ Compensation insurance

If an employee gets hurt on the job or sustains a work-related illness, workers’ compensation insurance can help provide coverage for wage protection and medical expenses. It’s almost always required by the state if you are an employer.

Commercial Property insurance

Commercial property insurance can help protect your equipment, furniture, fixtures, supplies and more. If your business property is damaged due to a covered event, such as a burst water pipe or fire, property insurance can help with replacement costs or repairs and the loss of business income while you get back up and running.

Professional Liability insurance

Professional liability insurance helps you defend yourself if you’re accused of making a mistake that causes someone to lose money. For example, if you are accused of misplacing forms that list confidential health information about the children in your care, it could help cover related expenses to defend yourself.

NEXT offers easy and affordable coverage for daycare providers

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