I know you are asking about insurance, but perhaps the first thing to consider is your employment status. A home daycare provider is usually considered self-employed under CRA rules. A self-employed person is someone who can set their own work hours and conditions as well as setting their own compensation ie. money. Is this your situation? Is she paying you to look after her kids? Is she going to get a percentage of the fees from the other kids? You will likely need to look into a partnership. Contact CRA to find out what you can and cannot do.