Addressed to churches and child caregivers, this policy report seeks to describe in layman's language the reasons for the liability insurance crisis confronting child care providers. It defines insurance terms, shows how the industry sets insurance policies and rates, and describes policies currently being written for child care programs by several insurance companies. Further, the report analyzes the instant and effective response among child care organizations and advocates who recognized the urgency of the crisis which was beginning to shut down child care programs across the country. The churches' particular response to the crisis is also described. Included are: (1) results of a study of the denominations and of the National Council of Churches' 1986 survey of liability problems faced by church-housed child care programs; and (2) deliberations of national church representatives who participated in a 1987 Council-hosted consultation on risk management. Legal expert Jim Strickland describes the current movement among non-profit, charitable organizations to reform laws governing insurance, and otherwise to address the crisis. California advocate Sharon Kalemkarian shares the experience of providers faced with cancelled insurance. Finally, to provide additional information, a resource chapter provides references to books, organizations, newsletters, and experts in the churches and in the fields of child care and child advocacy. (RH)