Getting business insurance for your dance studio is essential.
Dance studios need to be protected against claims involving things that could result in legal trouble for your business, such as personal injury and breach-of-contract lawsuits.
For example, one of your instructors could negligently provide bad advice to a student, causing them to be injured. You also could face legal liability if you violate your studio’s lease.
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 a Dance Studio Business
General liability insurance is — generally speaking — one of the most important insurance policies for dance studios.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
It’s always a good idea to have general liability insurance, but don’t think it will completely protect you. There are specialized policies that protect against other risks your company could face, such as:
- Commercial property coverage
- Professional liability insurance
- Commercial umbrella insurance
If you’re looking for business insurance, one of the first things you’ll notice is that there are two basic types of companies that sell it: traditional brick-and-mortar insurers and online insurers.
Traditional brick-and-mortar insurers include many large, well-established insurance companies like The Hartford and Nationwide. They’re almost always a safe choice, but you’ll pay more for a policy because these companies use insurance agents who sell from physical locations.
By contrast, online insurers usually just have a web presence and sell policies online using AI. They have much lower overhead and thus much lower costs. They also can provide insurance faster than traditional insurers. We recommend online insurers for small businesses.
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Cost of General Liability Insurance
The average dance studio in America spends between $300-$600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a dance studio business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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 a Dance Studio Business
Example 1: During your spring production, one of the dancers misses their cue on stage and must enter from the back of the curtain to step in time. Unfortunately, this area isn’t cleared for dancers, and the performer trips over a cord, breaking their arm in the fall. General liability coverage will likely help to cover any damages in a lawsuit.
Example 2: While stretching on a ballet barre, one of your students lifts their leg up only to come crashing down as the barre is ripped out of the wall. The student sustains a serious leg injury that requires surgery to repair. General liability insurance will likely pay for their medical expenses and any other damages.
Example 3: As your team sets up the stage for a performance, a group of parents is touring the studio. One of the parents goes out onto the stage just as a light falls from the scaffolding. The parent is hit in the shoulder and needs surgery for their injuries. General liability insurance will likely pay for their surgery and any other damages awarded in a lawsuit.
Other Types of Coverage Dance Studio 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:
Commercial Property Insurance
If you own the building that your dance studio operates from, you should carry a commercial property insurance policy. This type of insurance coverage will help to not only protect the physical building in the event of an accident or natural disaster but the business-related equipment inside as well.
Workers’ Compensation Insurance
Most states require that businesses with part-time and full-time employees carry workers’ compensation insurance. This coverage will pay for an employee’s medical bills if they are ever injured or become ill while performing their job duties.
Commercial Auto Insurance
Any vehicles that are used for work-related duties must be covered under a commercial auto insurance policy. Personal car insurance will not pay for any injuries or third-party damages associated with an accident involving a company vehicle.
Commercial Umbrella Liability Insurance
Operating a dance studio comes with many different risks, and if your primary insurance policies are exhausted following a lawsuit, commercial umbrella liability coverage works to go above and beyond those primary limits. This can help to prevent your business from closing down due to particularly high legal costs.
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 dance studio 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.
Dance Studio Business Insurance FAQ
Can I buy business insurance online for my dance studio business?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a dance studio?
Given that dance studios face financial risks that could threaten their long-term viability, you should purchase business insurance before starting to operate. Your state also may require at least certain types of insurance like workers’ compensation (if you hire instructors) or commercial auto.
Will insurance protect my dance studio business from everything?
Not necessarily. Certain exceptions may be written directly into your dance studio business insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
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.