Childcare Contracts: What to Check

Childcare contracts—daycare, nanny, babysitter—often set out fees, hours, cancellation, sick policies, and sometimes liability or indemnity language. If you don't read carefully, you might agree to fees that rise without notice, no refunds if your child is sick or you cancel, or clauses that try to limit the provider's liability if something goes wrong. Here's what to check in childcare agreements before you sign.

Fees and payment

• Base fee. What's included—hours, meals, activities? What's extra? Get it in writing so there are no surprises.
• Increases. Can the provider raise fees during the term? How much notice? In some places there are rules; the contract shouldn't bypass them. Prefer fixed fees for the term or clear rules (e.g. 30 days' notice, once per year).
• Late pick-up, late payment. What are the penalties? They can add up—so know the rules.

Cancellation and sick policy

• Your cancellation. Can you cancel? How much notice? Do you get a refund or credit? Some contracts say no refunds—so if your child is sick or you change plans, you may still owe. Push for a fair cancellation policy (e.g. 2 weeks' notice for a refund or credit).
• Provider cancellation. What if the provider is sick or closes? Do you get a credit or make-up day? What if they close permanently? Get it in writing.

Liability and insurance

• Release of liability. Does the contract say you waive claims if your child is hurt? In many places such waivers are limited or unenforceable for minors—especially for negligence. Don't assume you've given up your rights. If your child is hurt due to clear negligence, you may still have a claim. Get advice if needed.
• Insurance. Does the provider have liability insurance? Ask—and if they do, the contract may say you won't sue beyond that. Understand what that means in your jurisdiction.

BeforeYouSign can highlight fee, cancellation, and liability language in childcare contracts so you know what you're agreeing to—and what to push back on—before you sign.