If you run a licensed daycare in Ontario and you have opened your 2026 renewal invoice recently, you probably already know the number is higher. In some cases, meaningfully higher. In some cases, 40 percent higher than last year.
The reflex is to call your broker and ask what happened. That is the right instinct. But the answer you get back matters more than the number itself. Because in 2026, an insurance renewal for a Canadian licensed centre is no longer a standalone conversation. It is a CWELCC conversation. And most brokers are not having it.
The Two Things That Changed at Once
Every conversation about daycare insurance in Ontario in 2026 starts with two facts.
The CWELCC Funding Model Shift
The first is the CWELCC funding model shift. On January 1, 2025, Ontario replaced its revenue-replacement model with a cost-based funding model for participating centres. Operators asked for 20 percent in-lieu-of-profit. They received 8 percent. The rolling closures across the GTA in October 2024 were the visible expression of exactly this conflict.
The Hardening Child Care Insurance Market
The second is the hardening commercial insurance market for child care. Global reinsurers, reacting to a wave of high-severity abuse settlements, tightened treaties. Some Lloyd’s syndicates pulled out of the segment. Carriers still writing licensed centres raised rates, tightened abuse wording, and became more selective on new business.
The Math Nobody’s Showing You
Consider a mid-size Ontario centre with 60 licensed spaces, single site, no owned vehicle, participating in CWELCC. Their 2025 commercial insurance premium was approximately $5,200. Their 2026 renewal comes back at $6,700. That is a 28 percent increase.
Assume the centre operates on annual revenue of $1.1 million. An 8 percent in-lieu-of-profit allowance sets their maximum allowable margin at approximately $88,000 per year. A $1,500 unbudgeted premium increase represents 1.7 percent of that allowable margin.
Stack two consecutive years of 25 to 30 percent increases and it is a multi-percentage-point hit to operating outcome, every year, on a margin that cannot expand.
What a Real 90-Day Renewal Plan Looks Like
Phase 1: 90 to 60 Days Out
Operator conversation. Declarations page, CMSM contract, 5-year loss history, operational changes, projected budget and CWELCC position. Produces a documented risk profile.
Phase 2: 60 to 30 Days Out
Market work. Take the risk profile to the market. Not all carriers will quote a licensed daycare in a hardening market. Documentation earns better placement.
Phase 3: 30 Days Out
Recommendation. Three options showing premium, coverage, deductibles, sub-limits, abuse endorsement wording. Choose, bind, certificates to CMSM the same day.
The Three Things to Check on Your Current Policy Right Now
1. The General Liability Limit
First, the general liability limit. Match it against your CMSM purchase-of-service contract. Many operators are placed at $2 million when their contract requires $5 million.
2. The Abuse and Molestation Endorsement
Second, the abuse and molestation endorsement wording. Occurrence or claims-made? If claims-made, what is the retroactive date?
3. The Commercial Auto Position
Third, the commercial auto position. If the licensee owns a vehicle, commercial auto is mandatory under O. Reg. 137/15. If staff or volunteers ever drive on centre business, non-owned auto liability is needed.
Where CWELCC Math Fits Into Your Renewal Strategy
Lever 1: Documentation
Underwriters price presentable risk, not theoretical risk.
Lever 2: Scenario Planning Against the 8 Percent Cap
Prioritize the premium hikes that consume real margin.
Lever 3: Bundling
CGL, abuse, professional liability, property, D&O with one carrier reduces friction and often reduces premium.
Plan Your 2026 Daycare Insurance Renewal
CWELCC and your insurance renewal are the same conversation in 2026. Download the 2026 Ontario Daycare Insurance Playbook or book a 15-minute review.
