I had this same problem. Part of the problem is that none of the insurance agents I spoke with seemed to know what they were talking about. I had one guy insist I needed commercial insurance, I was agreeable to this (because I figure the more insurance the better) but once we started the process I learned that the commercial insurance is only for licensed facilities, not unlicensed.

Lee Bee is right, that you would need to change your home insurance over to them. Also, I started calling it babysitting and the insurance agents understood what I was talking about more. They hear daycare and they think "centre." It wasn't until an agent said "so you're babysitting?" that I understood the communication error. Also, make sure you clarify how many kids this covers. Some will only cover 5 kids (including your kids) but others will include your kids plus 5. This is important because although you would never sue yourself, your insurance would be null and void if you had 6 kids in program (one being yours) and something happens and you're only covered for 5 kids total.