Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a jazzercise facility.
This article will discuss the primary insurance coverage for jazzercise studios, general liability insurance, as well as additional products that are appropriate for this industry.
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Jazzercise Studios’ General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A JAZZERCISE STUDIO
Example 1: A student is injured while assisting with individual teaching during a class, blames the instructor, and demands reimbursement for her medical costs and lost pay. In the case of a lawsuit, general liability insurance would cover her medical bills as well as any court-awarded damages.
Example 2: When one of your pupils fails to notify you that she has broken a wall mirror, another student walks on it and injures his foot badly. General liability insurance would cover the student’s medical care as well as your legal expenses and any needed payment in the case of a lawsuit.
Example 3: You utilise a class picture on your new website without the consent of one of the kids. She files a lawsuit against your company for monetary damages. Your legal defence expenses would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Jazzercise studios in America pay an average of $400 – $1,100 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Jazzercise Studios
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every jazzercise studios should have are as follows:
Insurance for Professional Liability
While you endeavour to train students of diverse ability levels in your courses, there is always the possibility that someone could claim your instruction did them harm. If a customer sues your company for carelessness, professional liability insurance will pay your legal bills as well as any compensation necessary.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your teachers and other staff if they are injured on the job or get sick as a result of a work-related accident. It covers not only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident. This sort of coverage also covers legal defence expenses for serious injuries that result in litigation.
Workers’ compensation insurance is typically sold separately by most insurers.
Insurance for Commercial Property
Whether you own or rent the building where your studio is located, commercial property insurance should be included in your insurance portfolio. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to any commercially held structure, as well as the equipment and supplies housed within.
Commercial property insurance is often available as part of a company owner’s policy (BOP).
Coverage Options for Some Jazzercise Studios
In addition to the insurance listed above, your jazzercise studio may need other forms of coverage based on particular parts of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Business Interruption
If you have to shut your studio temporarily due to a fire, severe storm, or other covered occurrence, the repairs might take weeks, months, or even years. Business interruption insurance covers your expenditures and lost income until you are able to reopen. Many insurance also provide additional expenditure coverage, which may help you set up a temporary site while your studio is being repaired.
This coverage is often available as part of a company owner’s insurance (BOP).
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.