Dance studio business insurance
Last week, we discussed the health needs of dancers. This week, we’ll take a look at their business insurance.
Slips and falls can occur to anyone entering the premises: the mailman slipping outside the front door or a parent tripping over bags in the hallway.
Another injury related risk is that students may injure themselves following the teacher’s directions. The teacher could be held liable. Participants liability can help guard against this risk.
Plant and equipment
All of the studio’s equipment must be in good working order: the flooring, the mirrors, the bars and so on. A robust commercial liability policy must ensure the studio has access to the tools and resources that will allow it to continue operating.
The building itself requires care, maintenance and protection: boilers must remain safe and operable, and the building envelope must remain intact.
Liability and lawsuits
Commercial insurance also has provisions for protecting against lawsuits and covering legal expenses.
There are several buckets for protecting studios: Errors and Omissions (E&O), commercial general liability (CGL), participants liability and Directors and Officers (D&O) coverage.
D&O applies to larger studios that have a board of directors. Without D&O coverage, the directors would be paying lawsuit costs out of their own assets.
If the studio was to lose a lawsuit, the directors could lose their personal assets which would go toward covering the legal expenses and any court imposed compensation.
Lawsuits can arise on the basis of allegations. A studio insurance policy would need to respond to any allegations, regardless if they’re true or not.
Allegations can also concern sexual assault, abuse and misconduct. This is particularly relevant when the studio has washrooms and change rooms.
If you own a dance studio, contact us today to protect your business.