How much does dance studio insurance cost?

Dance studios pay an average of $55 per month, or $654 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at dance studios, such as a student who slips during practice and suffers a bodily injury, or accidental damage to a client's property.

For example, if a dance teacher drops and breaks a client's smartphone while showing them a new technique, general liability insurance coverage would pay for the repair costs or legal fees if the client sues over property damage.

It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for dance studios that buy from Insureon:

Insurance premium: $55 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $250

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all liability claims during the policy period, typically one year.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the types of dance classes you offer (Zumba, hip hop, Pilates, etc.), your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Dance studios pay an average of $121 per month, or $1,447 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries, property damage, and vandalism. It also provides property coverage for your business equipment and your building. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for those who rent or own a building.

This is the average BOP for dance studios that buy from Insureon:

Insurance premium: $121 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk dance companies are often eligible for a business owner's policy.

Dance studio owners may see higher costs if they choose to add additional coverages, like endorsements, to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your business property, where you are located, the number of employees you have, and your specialty.

Professional liability insurance costs an average of $42 per month, or $500 annually, for sports and fitness businesses including dance studios.

This coverage is also called errors and omissions (E&O) insurance or medical malpractice insurance.

A professional liability insurance policy covers the cost of lawsuits over claims that dance classes at your studio were unsatisfactory, negligent, or late.

For instance, if an instructor misses a dance practice or a student gets injured at your studio due to improper dance instruction, a professional liability policy would cover your legal defense costs, settlement, and other financial losses if the client sued over professional negligence.

Below is the average professional liability insurance policy for sports and fitness professionals who buy from Insureon:

Premium: $42 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $500

Several factors influence the cost of professional liability insurance, including the types of dance performances you offer (recitals, birthday parties, etc.), your claims history, and the policy limits you choose.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

Fitness trainers and instructors, including those who work at dance studios, pay an average of $42 per month, or $500 annually, for workers’ compensation insurance.

This policy covers medical expenses and lost wages related to employee injuries. It usually includes employer's liability insurance to protect against lawsuits from workers who get injured or ill on a jobsite.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all dance studios in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Small businesses, including dance studios, spend an average of $145 per month, or $1,740 per year, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps dance studios recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber liability insurance policy is especially crucial for dance schools and studios that store sensitive client information, such as credit card numbers, phone numbers, and email addresses.

The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your dance studio.

Small business owners, including dance professionals, pay an average of $147 per month, or $1,762 per year, for commercial auto insurance.

This type of insurance pays for legal costs and medical bills if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a dance studio. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including the coverage options you choose (such as additional insured endorsements), any exclusions in your policy, the number and value of your vehicles, and the driving records of anyone permitted to drive.