68% of childcare providers saw liability insurance spike in 2025, 25% by 300-1000%

Childcare provider liability insurance premiums surged in 2025, with 68% of providers reporting increases and a quarter of those seeing premiums jump 300% to 1,000% in a single year. Providers cannot absorb these costs on already razor-thin margins (average childcare center profit margins are 1-3%), so they pass them directly to parents as tuition hikes or close entirely. 65% of providers say they would shut down if they could not obtain coverage at all. This persists because major insurers are exiting the childcare market entirely -- the top reason for policy non-renewal is that the carrier simply stopped covering childcare -- creating an oligopoly among remaining insurers who can charge whatever they want.