Dance Studio Insurance

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Contributor, Benzinga
November 24, 2020

If you own or operate a dance studio, you already know that dancing, gymnastics and cheerleading come with an inherent risk of injury. However, injury risks aren’t the only type of risk that you face as a dance studio owner. From risks associated with natural disasters to the risk of having an employee be accused of abusing 1 of your students, there is an endless number of hazards that may jeopardize the future of your business.

A comprehensive business insurance policy can help you protect your business from theft, lawsuits and more. Our guide to the best dance studio insurance providers, coverage options and cost will help you find the perfect policy. 

Best Dance Studio Insurance

From major chains of insurance providers to more specialized options, there are dozens of companies providing comprehensive insurance options for dance studio owners. You may want to begin your search by comparing coverage options from a few of our favorite providers below. 

Types of Dance Studio Insurance

There are multiple types of insurance coverage that can benefit your dance studio. Each insurance type provides you with a small range of coverages, and you may want to combine multiple types of coverages to create a more encompassing policy.

The types of insurance you’ll want to have will vary depending on how you conduct your business, your clientele, your location and more. Let’s explore a few of the most common coverage types that dance studio owners use to safeguard themselves and their employees. 

General Liability Insurance 

General liability insurance is a type of umbrella insurance policy that provides you with protection from a range of legal claims that might be made against your business. Some examples of protections that your general liability insurance policy might extend to you can include:

  • 3rd-party bodily injury: This coverage compensates you if a client is injured on your property and sues you for their medical bills. Your general liability insurance will help cover the cost of defending your business in court, as well as any judgment a court orders you to pay to the plaintiff.
  • 3rd-party property damage: This helps you cover legal expenses if you or an employee damages a customer’s property and they decide to sue you for the cost of a replacement. For example, if your employee drops a client’s expensive camera and they sue you for the cost of a replacement model, your general liability insurance would help you cover court costs and judgments made against your business.
  • Advertising injuries: When you advertise your business, it’s possible to accidentally slander another dance studio owner or copy a competitor’s slogan. If a competing business owner brings you to court for copyright infringement or defamation, your general liability insurance will help you cover the legal expenses you incur defending yourself.

Importantly, while general liability insurance will help you cover legal expenses for actions brought against your business, it will not help you cover the costs of bringing a business owner or client to court.

Say a competing business owner copies your advertising slogan and you think you have a case for a copyright infringement claim, your general liability insurance won’t help cover the costs of this lawsuit. However, if you become the defendant in a copyright infringement case, your general liability insurance will help cover your legal expenses. 

Commercial Property Insurance 

Commercial property insurance is a type of protection that compensates you for damage done to the physical space where you operate your business. Like a homeowners insurance policy, commercial property insurance policies include a list of covered perils that you’ll have protection under. Some common examples of covered perils on these types of policies include:

  • Fires
  • Burglaries and theft
  • Damage from blizzards

Commercial insurance policies also often include lists of excluded perils. Some examples of commonly excluded perils include:

  • Earthquakes
  • Damage resulting from flooding
  • Damage that you intentionally initiated to your property (for example, through a botched DIY project)

Be sure to read through your policy inclusions and exclusions before you sign up for a commercial insurance policy, as specifics can vary by insurance provider. 

Business Owners Policy

A business owners policy (BOP) is a type of combination insurance policy that includes all of the coverages you’d find in both a general liability insurance policy and a commercial property insurance policy. Most business owners prefer to purchase a BOP over individually selecting a general liability and commercial property insurance policy because a BOP allows them to save on both types of coverages.  

Improper Sexual Conduct and Physical Abuse Liability Insurance

Improper sexual conduct and physical abuse liability coverage is a type of professional liability insurance that assists your business in covering legal expenses after a customer or client claims that you or an employee abused a child left in your care. Though no business owner wants to believe that any of their employees would harm a student, these types of lawsuits are unfortunately more common than many business owners believe. Policies are available with up to $1 million worth of coverage, which can help cover both attorneys’ fees and judgments made against your business.

Some general liability insurance policies include a level of coverage for improper sexual conduct and physical abuse, while some policies limit or exclude this type of coverage. Review your general liability insurance inclusions and policy limitations before you decide if you’d like to extend your coverage with a complementing policy specifically for abuse. 

Workers’ Compensation Insurance 

If you have at least 1 full-time or part-time employee assisting you with education, instruction or studio management, you may need to purchase a workers’ compensation insurance policy. Workers’ comp is a type of insurance coverage that compensates your employees if they are injured in the course of performing work-related duties. If an employee loses her life as a result of a work-related accident or injury, workers’ compensation insurance may also help cover the cost of funeral expenses.  

The specific level of workers’ compensation coverage you’ll need to have will vary depending on the structure of your business and which state or states you operate in. Speak with a local insurance representative to learn more about minimum coverage requirements in your area.

Cost of Dance Studio Insurance

The specific price that you’ll pay for your dance studio insurance can vary depending on a wide number of factors. Some factors that could influence how much you’ll pay for coverage include:

  • The types of dance lessons you offer: Different types and styles of dance may come with higher risks of injuries than others, which increases the amount of money you could pay for your insurance protections. For example, if your studio only offers basic ballroom dancing lessons for beginners, you’ll usually pay less for your insurance than a dance studio that offers aerial acrobatics because your style of dance is less likely to result in an injury.
  • The size of your business: As your list of students and employees grows, the chances of an injury or lawsuit increases. Expect to pay more for your general liability insurance, improper contact insurance and workers’ compensation insurance as your business revenue and list of employees grows.
  • Your experience: The more experience you have offering dance lessons and instructions to students, the less likely you and your employees are to make a critical mistake that results in a lawsuit or injury. You can expect your insurance rates to decrease as you gain more experience in offering lessons.
  • Your claim history: If you’ve made an insurance claim in the past, you’re statistically more likely to need to file another insurance claim in the future. Expect to pay more for insurance coverage if you have a claim in your insurance history.

As a general rule, a dance studio owner can expect to pay between $300 and $3,500 per year for a BOP with $1 million in liability insurance and $30,000 worth of property insurance, and between $2,000 and $3,000 per year for $1 million in workers’ compensation insurance. 

How Dance Studio Insurance Works

The term “dance studio insurance” refers to a set of coverage options you can use to protect your dance studio from a range of lawsuits, legal liabilities and damage done to your physical property. We recommend that most dance studio instructors focus on carrying adequate general liability insurance and commercial property liability insurance. You can typically combine both of these coverages together with a BOP to save money. 

Consider examining your general liability insurance to include coverage for accusations of abuse; we recommend investing in a professional liability insurance policy that covers these instances.

If you have at least 1 employee, you might also need to purchase workers’ compensation insurance. The level of this coverage that you need will vary depending on the state you live in and the size of your business. 

Finding Affordable Coverage Today

If you’ve been operating your business without insurance, you could be putting yourself at risk of paying out-of-pocket for property damage or a lawsuit. Thankfully, it’s never been easier to get an insurance quote and begin comparing your coverage options. We recommend starting your search with a few of our favorite coverage providers offering policies for dance studio owners listed above.