Pilates Studio Business Insurance
Getting insurance for your Pilates studio is essential.
Pilates studios need to be protected against things like claims of premises liability, negligence, and personal injury.
For example, if a customer suffers an accident as a result of your studio’s improper instruction, they could file negligence lawsuits against you.
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 Pilates Studio
General liability insurance is — generally speaking — one of the most important insurance policies for Pilates studios.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Many supplementary policies build on the coverage of general liability to bolster your Pilates studio’s protection, such as:
- Professional liability insurance: Protects you from the financial fallout of negligence claims filed against your business.
- Commercial property insurance: Covers the cost of replacing any business property (e.g., real estate and supplies) that has been damaged by stipulated events.
- Workers’ compensation insurance: Compensates your employees that have injured themselves at work for their medical bills and lost wages.
When it comes to obtaining business insurance, there are generally two options available to your Pilates studio:
- Traditional brick-and-mortar insurers
- Online insurers
While the difference between the two is self-evident, the implications of this difference are not. As a result of being based entirely online, insurers like Tivly and Next can charge greatly reduced prices due to their low overheads.
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Cost of General Liability Insurance
On average, Pilates studios in America spend between $400 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a Pilates 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.
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Common Situations That General Liability Insurance May Cover for a Pilates Studio
Example 1: While entering your restroom, a student slips on wet flooring, breaks an arm in the fall, and decides to sue your business for damages. General liability insurance would pay for your legal defense and any required settlement.
Example 2: A competitor files a lawsuit against your business, claiming you libeled her company in your last advertisement. While you disagree with the claim, you know you need a lawyer right away. General liability insurance would pay for your legal defense and any required settlement.
Example 3: As a student walks into your studio from the parking lot, he trips over some broken pavement, breaks an ankle, and demands you pay for his medical treatment. General liability insurance would cover his medical expenses.
Other Types of Coverage Pilates 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
While you strive to help students improve their lives and health through your Pilates classes, there’s always a chance someone might decide you made a mistake that caused them harm. If a student sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the equipment, supplies, furnishings, and real estate needed to establish your studio. 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 materials stored there.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your 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 workplace accident.
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 Pilates 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.
Pilates 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.
Despite not being the first thing you think of when starting a Pilates studio, acquiring business insurance prior to the launch of your business is invaluable for protecting it against unforeseeable risks.
Additionally, it eliminates the worry that your business could be illegally operating without policies it should possess, such as commercial auto or workers’ compensation insurance.
Not necessarily. Certain exceptions may be written directly into your Pilates 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.