Why Dance Studios Need Insurance
Dance studios provide a much-appreciated service and have the ability to attract many patrons wanting to acquire a new skill or get in shape. However, the nature of the work done in dance studios, from practicing choreography to teaching fitness classes, means owning one can be inherently risky.
When teaching a choreography or rehearsing for a performance, there is the possibility of an accident or injury occurring. For example, a dancer may slip while performing a certain dance move and break a leg, resulting in a costly injury. Dance studio equipment, such as speakers and mirrors, also face the risk of being damaged.
For example, if you’re teaching a zumba class and a participant bumps into and breaks the sound equipment, you will end up having to pay for the damages. Bodily injuries, equipment damage, and building deterioration are all possible risks that a dance studio may experience. With such risks in mind, insurance for dance studios can be incredibly valuable.
What Types of Coverage Do Dance Studios Need?
Choosing the right coverage requires consideration of the type of instruction you will provide, the number of employees you have, and how many participants you instruct. One of the most commonly utilized policies you may want to obtain is General Liability insurance. General Liability insurance covers many possible incidents that can happen at a dance studio including:
- Bodily injuries to customers (or other third parties), such as breaking a leg or spraining an ankle
- Third party property damage, such as an employee spilling water on a dancer’s bag and damaging their laptop
Another coverage to consider for dance studios is Commercial Property insurance. This policy provides coverage for:
- Building damage due to named disasters and vandalism
- Equipment damage, such as broken mirrors or sound systems caused by named perils, such as a fire
Additionally, if you have more than 3-5 employees working at your studio, you may need to obtain Workers Compensation. Depending on the state you operate in, Workers Compensation is generally required once you have a certain number of employees, though the minimum changes by state. Workers Compensation provides:
- Medical expense coverage and recovery programs for employees (for example, an employee who needs treatment for a broken arm)
- Coverage for an employee’s lost wages while they're unable to work at the studio
Cost of Dance Studio Insurance
Insurance for dance studios can differ in cost depending on the types of coverage you need. In addition, factors such as the type of building used for the studio, the number of employees, and the number of participants can influence the price of your selected insurance. It just takes a few minutes to get a quote and determine the actual cost of coverage to protect your business.
What type of insurance does this industry need?
- General Liability: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.
- Commercial Property: This policy protects the business's physical assets and is appropriate whether you own or lease your space. Keep in mind that this policy will only offer protection in the case of covered events. If you need protection for certain scenarios, such as floods or earthquakes, you may need additional coverage. If you have a mortgage or a lease, you may be required to have property insurance. Even if you are not, this is the best way to protect the building you are in and the business property you have in case of a natural disaster or some other accident.
- Workers Compensation: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.
