Acting Class Business Insurance
Getting insurance for your acting class business is essential.
Acting class businesses need to be protected against claims involving things like misrepresentation, breach of contract, or personal injury.
For example, an employee may be found to be overstating their qualifications, your business may have disputes over a freelance instructor’s contract terms, or a student may injure themselves while following a teacher’s instruction.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an Acting Class Business
General liability insurance is — generally speaking — one of the most important insurance policies for acting class businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
With that in mind, it is still important to bear additional insurance policies in mind if you want your acting class business to be fully protected from some of the most common risks. Some examples of these additional policies include:
- Commercial property coverage
- Professional liability insurance
- Commercial umbrella insurance
- Workers’ compensation insurance
There are two broad options when selecting where to purchase your business insurance from: conventional providers with a physical storefront or those based entirely online.
While providers with a physical location were traditionally more popular, online insurers have been growing in popularity for some time now due to their ability to provide a similar quality of insurance for cheaper and in less time.
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Cost of General Liability Insurance
The average acting class in America spends between $300-$600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an acting class business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for an Acting Class Business
Example 1: While walking to the restroom in your acting studio, a student slips on wet floor tiles, breaks an arm, and decides to sue your business. General liability insurance would pay for your legal fees and any required settlement.
Example 2: When you fail to see a visitor to your class as you round a corner, you run into him and knock him to the ground. He breaks his tailbone and asks you to pay his medical bills. General liability insurance would cover the cost of the injured visitor’s medical treatment.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.
Other Types of Coverage Acting Class Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Professional Liability Insurance
While you strive to provide professional instruction that benefits your students, there’s always a chance one might decide your advice harmed them. If a student files a lawsuit based on your acting instruction, professional liability insurance would cover your legal fees and any required settlement.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your acting teachers and other employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Commercial Property Insurance
You made a major investment to purchase real estate, equipment, and supplies for your acting school. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business equipment and supplies you store there.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your acting class business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Acting Class Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
As a general rule, we recommend securing the best insurance for your acting class before its business activities commence, especially given the industry’s proclivity for risks (such as personal injury and property damage).
On top of this, it is worth being aware that certain specific insurance coverage types might be needed for your acting class business to operate lawfully.
Not necessarily. Certain exceptions may be written directly into your acting class business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.