I am one of the more competitive daycare insurance providers around. Here are a couple things you should consider.
First, if you would like a policy with minimum coverage we can go as low as $300,000/$600,000 for liability limits. Very basic policy, doesn't cover as much as other policies but if a child is injured in your daycare you'll have some coverage. Depending on how many kids you have, the premium can be as low as $400 per year.
Second, since a daycare is your business there are endorsements you should consider. One of the main ones is loss of income. If you have a fire in your home, you're not only losing your home for a while, you're also losing your place of business and business income. Consider getting a better policy to help you temporarily relocate your business until your home is ready for the kids again. You could still be under $700 per year and have a top notch policy. Payments can be anywhere from paid monthly to paid in full once a year.