I just have it included under the Termination guidelines of my contract. Something to the effect of:

If your child is a threat to they physical, social or emotional well-being of any other child in care then services will be terminated immediately and any fees paid will not be reimbursed

Something like that.

I don't like to have entire sections that draw parents attention to a potential problem that is really non-existent. It makes them start to wonder WHY you would have to have such a policy. You know?

Personally, of all my years in daycare I have only ever ONCE had to terminate a child for bullyish behaviour toward another child.