Insurance. It’s not a fun topic, but it’s still an extremely important facet of running your dance studio. While Liability Insurance coverage is probably the first type of insurance that many studio owners think about, it’s definitely not the only type of coverage you need to have in place.
Equipment Insurance Coverage for Dance Studios
Referred to as “Equipment Coverage,” this type of insurance is one of three important aspects of your dance studio’s insurance policy. Equipment Coverage will protect your studio’s personal property, including the following:
- owned or leased business property
- tenant improvements to the property
- related business property (such as computers, furniture, and inventory)
In the event of damage or theft, having proper Equipment Coverage will make sure any such losses will be able to be replaced. (Damage could result from all kinds of unexpected situations, including accidents, earthquakes, fire, flooding, smoke, water and wind.)
Many studio owners assume such property is included under the umbrella of their Liability Insurance policy; however, this assumption is incorrect. Note that the term “Property Damage Liability,” listed on your Liability Insurance policy, refers to your liability when it comes to other people’s property; it does not cover damage to your own property.
Equipment Coverage could be achieved through either an addition to your Liability Insurance policy or through a separate property insurance policy. If you lease your dance facility, you may also want to check with your landlord regarding coverage in the case of a fire in which your studio equipment becomes damaged; typically, though, most lease agreements require that the tenant insure any improvements or equipment that they own.
Accident Insurance for Dance Studios
This third type of insurance your dance studio should have in place helps pay for any medical bills in the event that one of your dancers or participants is injured during a rehearsal or performance. (Like any policy, your Accident Insurance coverage is subject to the policy’s limits.) Like Liability Insurance, an Accident Insurance policy can help avoid lawsuits; typically, people who sue a business such as a dance studio do so because they are unable to pay their medical bills. If your studio helps cover their expenses, you’ll lessen your chances of being sued.
Typically, Accident Insurance policies are designed to be secondary insurance policies, covering only what a participant’s personal medical insurance does not cover.
If you’re not sure exactly what kind of insurance coverage your studio has in place or the limits that it has, it might be time to make an appointment with your insurance agent to discuss the details. You can also learn more about insurance needs specific to dance studios at the Dance Insurance Company website.
With the proper insurance coverage in place, you can go forward, knowing that your investment and efforts will be protected in the case of something unforeseen. From that secure position, you can go on to the more inspiring Adagios and Codas of studio life!