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Dear Providers,
In an effort to address questions frequently asked and to provide greater clarification into the Universal Preschool Colorado Program and State of Colorado law around insurance requirements, the Colorado Department of Early Childhood (CDEC) is providing the following information on insurance requirements for Universal Preschool Program providers and Colorado Secretary of State Registration.
All Universal Preschool Program providers (including in-home providers) are required to have General Liability Insurance and in some cases, Protected Information Insurance (definition of both are provided below).
Insurance coverage is required by statute and state controller policy pursuant to Colorado Revised Statute 24-30-202 (13)(a). As a reference, the same insurance requirement was in year 1 of the Agreement as well.
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General Liability Insurance: General liability insurance helps cover claims that can come up during normal business operations. It protects against bodily injury or property damage. Providers must have this as a protective measure in case a child gets hurt. By providing this insurance coverage before children are matched to the provider, the Colorado Department of Early Childhood will confirm this coverage is in place. Homeowners insurance is not required under this agreement.
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Protected Information Insurance: Liability insurance covering all civil, regulatory, and statutory damages, contractual damages, data breach management exposure, and all loss income or extra expense as a result of actual or alleged breach, violation or infringement of a right to privacy, consumer data protection law, confidentiality or other legal protection for personal information as well as State Confidential Information. Personally identifiable information is defined as representation of information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means. If the provider has no personally identifiable information on the children being served that has been provided by the Colorado Department of Early Childhood, this insurance is not required.
If the Universal Preschool Program provider has more than one employee it is required to have the following insurance and documentation:
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Workers Compensation Insurance: According to State statute, if a provider has one or more employees (other than the owner) working for the business in Colorado, the provider must have workers' compensation insurance and maintain it at all times. This applies to all employers, regardless of whether the employees are part-time, full-time, or family members. If an individual does not have employees, then they are not required to have workers compensation insurance. An employee is defined as a person who works for another in return for financial or other compensation.
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Secretary of State Registration: Any provider with an employee other than the owner must be a registered business with the Colorado Secretary of State. Individuals are not required to have Secretary of State Registration or confirmation with the Secretary of State.
More information about Colorado Secretary of State registration can be found at this link: https://www.sos.state.co.us/pubs/business/businessHome.html
Additional provisions that may be applicable to providers are as follows:
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Automobile Insurance: If a provider uses vehicles as a component of their business, any vehicles used by the provider must be properly insured according to Colorado law, whether they are owned, borrowed or leased. If the provider does not use a vehicle in conjunction with providing child care, then the provider would not be required to have this insurance.
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Crime Insurance: If a provider is responsible for handling money, this insurance coverage is taken by providers against employee theft/criminal activities. This would not be applicable to an individual with no employees. This would not be applicable to a provider that does not process financial transactions as a component of their agreement with the state.
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Professional Liability Insurance: Some providers may have advanced services (therapeutic or other), which may require professional liability insurance. If you have questions about whether this will apply to you, please discuss with your insurance carrier. If you do not provide professional services or advice to other businesses or individuals, Professional liability insurance is not required. Examples of the types of work professional liability insurance would apply to include:
- Accountants
- Architects
- Engineers
- Graphic designers
- Information technology (IT) consultants
- Insurance professionals
- Investment advisors
- Management consultants
- Real estate agents and brokers
- Software developers
If your organization does not provide any of the above services outlined under the professional liability insurance, the provider does not need professional liability insurance to meet the expectations of the provider agreement to deliver Universal Preschool Services.
These insurance and documentation provisions will remain in the agreement, however, in the above circumstances, these insurance requirements would be waived for the provider if not required.
Please feel free to reach out to CDEC_procurement-contracts@state.co.us with any additional questions you may have.
Thank you,
Your Partners at CDEC
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