Yoga Studio Business Insurance
Getting business insurance for your yoga studio is essential– you’ll need to protect your business’s assets against events that could occur and cause you significant financial loss.
Such claims include those that relate to client injuries, yoga instructor-related negligence, and property damage.
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 Yoga Studio
General liability insurance is — generally speaking — one of the most important insurance policies for yoga studios.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, you may wish to purchase additional coverage depending on your business’s unique needs and associated risks.
For a yoga studio, insurance policies worth considering include:
- Commercial property — Covers the cost of repairing and/or replacing your yoga studio’s commercial equipment if it gets damaged or stolen.
- Errors and omissions — Covers negligent acts and/or omissions committed by a yoga instructor hired by your business.
- Business income — Covers part of your lost income in cases where you are required to shut down due to a covered risk.
You will also need to decide whether you will use an online insurer or a traditional brick-and-mortar alternative.
Both options come with different pros and cons, but we recommend choosing an online insurer for a small business owner.
This is because it can be a more affordable approach when it comes to getting customizable coverage due to the lower overhead involved (i.e., purely online, no insurance agent, etc.).
Let's Find the Coverage You Need
The best insurers design exactly the coverage you need at the most affordable price.
Cost of General Liability Insurance
On average, yoga studios in America spend between $350 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a yoga studio 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.
Find the Best Rate
Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Yoga Studio
Example 1: During a yoga class, a student is injured by a teacher looking to “enhance” the student’s range of motion. The student is seeking compensation for medical bills and lost wages for time out of work. Your general liability policy should cover all expenses and damages.
Example 2: In a teacher-assisted forearm stand, a student loses balance and breaks a mirror on the adjacent wall. Your general liability policy should provide coverage for the student’s injuries and any resulting legal costs
Example 3: A student complains of unlawful use of their picture when a class photo is posted online. A general liability policy can provide protection from the resulting lawsuit.
Other Types of Coverage Yoga Studios 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
Yoga studios have students of varying skill levels attending classes. Unfortunately, students are sometimes injured, citing poor instruction or posture correction. A professional liability policy, also known as errors and omissions insurance, covers negligence claims brought on by human error and/or a misunderstanding.
Workers’ Compensation Insurance
Workers’ compensation insurance is legally required by most states for any company that has full-time or part-time employees. It covers employees if they suffer an injury while on the job. In addition to medical bills, it also offers protection for lost wages, lawsuit costs, and any resulting settlements.
Workers’ compensation is purchased as a standalone policy.
Commercial Property Insurance
Yoga studio business owners who own the real estate they operate out of should consider purchasing commercial property insurance. In the event of a loss, the policy should cover the cost of repairing the building, as well as the replacement of all business property and products.
Commercial property insurance is generally purchased as part of a business owner’s policy (BOP).
Business Interruption Insurance
Most business owners count on their monthly revenue to pay both business and personal expenses. If the business is forced to shut down for an extended period of time, the financial impact could be devastating. Business interruption insurance helps lessen that burden, making up some of the lost revenue.
This type of insurance is typically available as part of a BOP.
Commercial Umbrella Liability Insurance
While a general liability policy offers significant coverage, some lawsuits could result in payouts that exceed primary policy limits. A commercial umbrella liability policy should be considered, as it adds an extra layer of protection.
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 yoga studio:
- 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.
Yoga Studio 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.
Yes, you do. This is because you will be unable to predict exactly when you will need your business insurance, and not having it when you need it could cost you tens of thousands of dollars in the long term.
Depending on your employee structure, you may also be legally required to purchase workers’ comp coverage.
Not necessarily. Certain exceptions may be written directly into your yoga studio 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.