Well, first of all unless said kids are handling the hive, throwing rocks at it, etc... The odds of anything like that ever occurring are extremely remote. These are honeybees, not hornets, wasps, or yellow jackets. Most if not all counties will have ordinances regarding the keeping of bees - and most allow beekeeping (even in neighborhoods) as long as hives are kept a certain distance from dwellings. I think as long as you follow those regs there is no liability issue. If someone gets stung, how could anyone demonstrate it was 'your bees' that did the stinging? Bees are everywhere. I think talking to any nearby neighbors in advance and reassuring them is a good idea even if legally you have a right to have bees on your property. I would also say, if a neighbor or their kids have a true anaphylactic allergy to bee stings - I would not keep bees there and would try to find a farm or nursery nearby that would let me maintain my hives there. I do keep epi-pens in my fridge just to be on the safe side.