4600, Evaluating Compliance with Liability Insurance Requirements

July 2021

Licensed, registered and listed operations are required to maintain liability insurance as specified in minimum standards and Texas Administrative Code Chapter 745. Annually, these operations must verify their liability insurance by the following time frames:

  • Licensed operations: by the anniversary date of the initial license; and
  • Registered and listed operations: by the anniversary date of the full permit.

Certified (state-operated) operations, small employer-based child care programs, shelter care programs and relative-only listed family homes are not required to maintain liability insurance.

Texas Human Resources Code §§42.04942.0495

26 TAC §§745.249745.251745.253  

 

4610 When to Evaluate for Compliance with Liability Insurance Requirements

July 2021

CCR staff annually evaluate compliance with liability insurance requirements for each licensed, registered or listed operation. The method and timing of the evaluation is determined by the operation type.

 

4611 When to Evaluate Liability Insurance Requirements for Licensed Operations

July 2021

Procedure

The CCR inspector evaluates whether a licensed operation is in compliance with the liability insurance requirements during the first routine monitoring inspection that is conducted after the anniversary date of the operation’s initial license.

See 4620 How to Evaluate for Compliance with Annual Verification of Liability Insurance Requirements

26 TAC §§744.203744.205744.207746.203746.205746.207748.158748.159748.160749.155749.157; and 749.159

 

4612 When to Evaluate Liability Insurance Requirements for Registered Child Care Homes

July 2021

Procedure

The CCR inspector evaluates whether a registered child care home is in compliance with the liability insurance requirements on an annual basis. The method and timing depend on whether a routine monitoring inspection will occur before the next anniversary date of the home’s permit. When a routine monitoring inspection will occur before the next anniversary date of the home’s permit, the CCR inspector evaluates the operation for compliance during the routine monitoring inspection.

When a routine monitoring inspection will not occur before the next anniversary date of the home’s permit, the CCR inspector completes the evaluation no later than 30 days after the verification of liability insurance was due. The CCR inspector may create in CLASS a manual To-Do reminder for completing this evaluation.

See 4620 How to Evaluate for Compliance with Annual Verification of Liability Insurance Requirements

26 TAC §§747.209747.211747.213  

 

4613 When to Evaluate Liability Insurance Requirements for Listed Family Homes

July 2021

Procedure

Within 30 days after the anniversary date of the permit for the listed family home, CCR staff determine whether the home is in compliance with the liability insurance requirements.

Listed family homes that care for related children only are not required to maintain liability insurance.

See: 4620 How to Evaluate for Compliance with Annual Verification of Liability Insurance Requirements

26 TAC §§742.403742.405742.407  

 

4620 How to Evaluate for Compliance with Liability Insurance Requirements

July 2021

CCR staff review CLASS, Digital Storage on the CCR SharePoint, and the operation’s hard copy record to evaluate whether the operation is in compliance. If the operation is not in compliance, CCR staff take steps to ensure the operation comes into compliance.

Procedure

CCR staff determine if the operation did one of the following by the anniversary date of the operation’s initial permit (licensed operations) or full permit (registered, certified or listed operations):

  • Updated liability insurance information through the operation’s online provider account (this submission will update the Liability Insurance History page in CLASS for the operation);
  • Submitted the information on a completed Form 2962, Verification of Liability Insurance; or
  • Submitted the information required by Form 2962 in a manner other than completing Form 2962.

If a provider submits Form 2962 or submits the information required by Form 2962 in another manner, staff document the information submitted on the Liability Insurance History page in CLASS.

If the Operation Has Liability Insurance

If the operation has liability insurance, CCR staff verify that the operation provided written proof of insurance coverage from the insurance company. CCR staff retain the proof of insurance according to 1300 Child Care Regulation Records.

If an Operation Does Not Have Liability Insurance

If staff are evaluating liability insurance requirements during an inspection or investigation and the operation does not have liability insurance, CCR staff evaluate whether the operation notified parents as required. If the operation is not in compliance, CCR staff take steps to ensure the operation comes into compliance.