Protecting Ontario's Licensed Daycare Centres
Licensed daycare centres in Ontario operate under tight ratios, strict regulators, and a CWELCC funding model that caps your margin at 8%. One incident, one renewal surprise, one missed coverage gap can shut a centre’s doors.
Our daycare insurance program is built for the realities of running a licensed centre in 2026, by brokers who actually speak the language of CCEYA, CMSM contracts, and abuse coverage that holds up at claim time.
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Unique Risks Facing Ontario Licensed Daycares
Surprise Renewals
Some operators are seeing sharp premium increases this cycle with limited advance notice from their broker.
Abuse Allegations
Even unfounded allegations carry six-figure defence costs. Many policies are quietly moving to claims-made.
CWELCC Pressure
The 8% in-lieu-of-profit cap leaves zero room for surprise premium hikes. Margin compression is real.
Licensing Officer Audits
O. Reg. 137/15 Section 71 makes CGL mandatory. Missing or expired proof can put your licence at risk.
Volunteer & Parent Boards
Non-profit centres routinely miss D&O coverage. Board members get personally exposed for governance decisions.
Field Trip Transport
If your centre owns a vehicle used in the program, commercial auto is mandatory under CCEYA. Many operators miss it.
What Our Program Covers
Commercial General Liability
Protects against third-party injury and property damage claims. Required under O. Reg. 137/15 Section 71.
Example:
- A four-year-old falls from the playground climbing structure. Family pursues a claim for inadequate supervision.
Abuse & Molestation Liability
Often excluded or limited under base CGL. May need to be added back. Watch claims-made vs. occurrence wording closely.
Example:
- An allegation is made against a staff member. Investigation clears them. Defence costs can still exceed $120,000.
Note: Without the right abuse coverage, defence costs for an allegation may not be covered. This is the most-watched coverage on your policy.
Property & Contents Insurance
Covers your building (if owned), toys, equipment, food prep, and IT infrastructure on a replacement-cost basis.
Example:
- A kitchen fire damages the building and contents.
- A burst pipe floods the toddler room overnight.
Directors & Officers Liability
Protects parent-board members and non-profit leadership from lawsuits tied to governance decisions.
Example:
- A board faces claims of misallocating CWELCC funding or wrongful staff dismissal.
Tip: Non-profit operators frequently miss this. Board members are personally exposed without it.
Professional Liability (E&O)
Covers errors and omissions in educational, behaviour, and supervisory decisions.
Example:
- A parent alleges a developmental concern was missed, resulting in delayed early intervention.
Commercial Auto & Field Trip Coverage
If your licensee owns a vehicle used in the program, commercial auto may be required under CCEYA Section 71.
Example:
- A daycare van is rear-ended during a field trip with children on board.
Real-World Scenarios
Small Centre, Under 30 Capacity:
O. Reg. 137/15 Section 71 makes CGL mandatory. Missing or expired proof can put your licence at risk.
An allergy plan is missed. A preschooler is hospitalized. Snack-time protocols come under scrutiny.
An unfounded abuse allegation triggers an 11-month investigation. Defence costs exceed $120,000.
A hacker breaches the parent portal. Tuition payment data and emergency contact records are exposed.
A non-profit board is sued for wrongful dismissal of an ECE. The board chair is named personally.
Each of these scenarios could cost thousands, or millions, without tailored coverage.
How Much Does It Cost
Premiums vary by capacity, services, claims history, and province. Below are modeled ranges for licensed Ontario centres in 2026.
Small Centre, Under 30 Capacity:
$1,500-$3,500 annually.
Mid-Size Centre, 30-80 Capacity:
$3,500-$8,000 annually.
Large or Multi-Site Operations:
$8,000-$25,000+ annually.
Tips:
Carriers reward operators who document incident logs, maintain vulnerable sector screening, install cameras in common areas, and treat abuse coverage as a priority rather than a cost to cut. Estimates above are modeled, not quotes.
Who Needs This Coverage?
Licensed Standalone Daycare Centres
Multi-Site Daycare Groups & Chains
Non-Profit Centres With Parent Boards
CWELCC-Participating &
Non-Participating Operators
Before & After School Programs
Why Choose Our Daycare Insurance Program?
CWELCC-Aware Brokers
We speak the language of cost-based funding, CMSM contracts, and the 8% margin reality your business runs on.
Renewal Strategy,
Not Surprises
You hear from us 90 days before renewal, not the day the new premium lands in your inbox.
Abuse Coverage Done Right
Limits, wording, and claims-made vs. occurrence explained clearly so you understand what you're actually buying.
Backed By A-Rated Carriers
Carrier-agnostic placement. We shop the daycare market for you instead of selling whatever's easiest.
What Our Clients Say
Real clients. Real coverage. Real protection for the communities families trust.
Daycare Insurance FAQs
Is daycare insurance required by law in Ontario?
Yes. Under O. Reg. 137/15 Section 71 of the Child Care and Early Years Act, licensed centres must carry general liability and personal injury coverage. Commercial auto is required if the licensee owns a vehicle used in the program.
What does daycare insurance typically cost in 2026?
Mid-size centres (30-80 capacity) typically pay $3,500-$8,000 per year. Use our Cost Calculator for a modeled estimate based on your specifics.
Is abuse coverage included in standard CGL?
No. Abuse and molestation is excluded from base CGL and must be bought back. Without buy-back, you have zero defence cost coverage on any allegation.
What's claims-made vs. occurrence coverage?
Occurrence covers incidents that happened during the policy period regardless of when reported. Claims-made only covers claims reported during the policy period. Switching carriers on a claims-made policy can leave past incidents uncovered.
Does CWELCC affect my insurance requirements?
Not directly, but the 8% in-lieu-of-profit cap and CMSM purchase-of-service contracts change how insurance fits into your operating budget and which limits you actually need.
What if I run a non-profit with a parent board?
You need Directors & Officers coverage. Without it, board members are personally exposed for governance decisions, employment matters, and oversight failures.
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Protecting Canada's Daycare Communities
Licensed daycare centres are where Canadian families build trust. Don’t let an uncovered claim, a renewal surprise, or a quiet policy downgrade end years of work.
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