Should residential landlord allow tenant to operate daycare from the home?

A residential landlord should not allow a tenant to operate a daycare in the home unless the landlord's insurance would cover any loss due to the business.

Attorney Tom Olsen: Cindy, you're on News 96.5, go ahead.

Cindy: Hi, I'm a landlord and my tenant has started taking classes. She would like to do things after hours and small children, and she's going to get a license and do all that. The home that she rents from me and that, can I draw up any papers or what do I do because I don't want to be responsible for any of the children, or any of her work, or any--

Attorney Tom Olsen: Cindy, you're breaking up on me, but I think I get the gist of it. Cindy, you are the owner of a residential house. Your tenant wants to operate a business out of that house. I think you're talking about child daycare. If something goes terribly wrong, you don't want to get sued. Well, guess what, Cindy? If you get sued, your insurance company is going to defend you, and as soon as your insurance company finds out that you have been renting your home, your resident's out for a business, they're going to deny liability to you, Cindy.

You are very much at risk. I cannot imagine you allowing this to go forward unless you have checked in with your insurance company and they have written you an e-mail or a piece of paper saying that if this child care center goes terribly wrong in your rental home, they will cover your loss, Cindy. Do not go forward without evidence from your insurance company that they would cover this loss if something went wrong.