By: Ellis S.B. No. 1833
A BILL TO BE ENTITLED
AN ACT
relating to liability insurance requirements for daycare
facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.049, of the Human Resources Code, is
amended by amending Subsection (e) to read as follows:
Sec. 42.049. LIABILITY INSURANCE REQUIRED. (a) A license
holder shall maintain liability insurance coverage in the amount of
$300,000 for each occurrence of negligence. An insurance policy or
contract required under this section must cover injury to a child
that occurs while the child is on the premises of the license holder
or in the care of the license holder.
(b) A license holder shall file with the department a
certificate or other evidence from an insurance company showing
that the license holder has an unexpired and uncancelled insurance
policy or contract that meets the requirements of this section.
(c) Should the license holder for financial reasons or for
lack of availability of an underwriter willing to issue a policy be
unable to secure the insurance required under Subsection (a) or
should the policy limits be exhausted, the license holder shall
notify the parent or a person standing in parental relationship to
each child for whom the license holder provides care a written
notice that the liability coverage is not provided and there will
not be a ground for suspension or revocation of the license holder's
license under this chapter. The license holder shall also notify
the department that the coverage is not provided and provide the
reason for same. In no case shall the inability to secure coverage
serve to indemnify the license holder for damages due to
negligence.
(d) The insurance policy or contract shall be maintained at
all times in an amount as required by this section. Failure by a
license holder to renew the policy or contract or to maintain the
policy or contract in the required amount is a ground for suspension
or revocation of the license holder's license under this chapter.
(e) This section does not apply to a group day-care home or a
listed or registered family home.