Top Business Insurances for Dance Studios and Companies with NAICS Code 711120

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Key insurances dance studios and performance groups should consider including commercial general liability, commercial property, workers compensation, directors and officers liability, business owners policy and more.

Key Takeaways

  • Commercial general liability insurance protects against lawsuits from injuries on premises or during operations.
  • Commercial property insurance covers property, equipment and lost income from damage or theft.
  • Workers compensation covers medical costs and lost wages if employees are injured.
  • Directors and officers liability protects owners from lawsuits related to business decisions.
  • A business owners policy bundles property and liability coverage in one policy.
  • Commercial auto insurance covers vehicles used to transport performers and equipment.
  • Employment practices liability covers lawsuits from employment-related claims like discrimination.

Introduction

Dance studios and performance groups face various risks that could threaten their financial stability and long-term viability. Protecting the business through adequate insurance is crucial given the physical risks inherent in dance instruction and live productions. Several core types of insurance should be considered.

Commercial General Liability Insurance

For dance company owners seeking affordable protection, commercial general liability insurance offers important coverage. It protects dance studios and performance groups from financial losses due to accidents, injuries and other incidents that may occur through their business operations or activities. Commercial general liability insurance is essential coverage for dance companies due to the inherent risks in their industry. It protects against lawsuits and pays for defense costs if claims arise from incidents involving students, customers or visitors. Having this insurance instills confidence in clients and audiences by demonstrating that safety is a priority.

Category List
Benefits
  • Covers legal costs and damages if someone sues your business for injury or property damage
  • Protects your business assets from losses not covered by other policies like workers’ compensation or commercial property insurance
  • Covers you against claims that may arise from accidents that occur on your business premises or from your operations
  • Covers claims arising out of errors and omissions in the conduct of your business
  • Provides coverage tailored to the hazards facing dance companies like injury from dance instruction or slips and falls
  • Pays for medical expenses and lost wages if a student or visitor suffers an injury at your studio or during a performance
  • Protects your business’s reputation by responding to claims professionally
  • Allows you to continue operating without disruption if a claim is filed against your business
  • Demonstrates to customers, clients and event venues that you take risk seriously
  • Having commercial general liability insurance instills confidence in customers and clients that your dance company is properly protected. It signals that you take risk management seriously for the safety of all involved.
  • By mitigating financial risk, commercial general liability insurance allows dance company owners to focus on what matters most – providing a safe, enjoyable experience for students and audiences.
Use Cases
  • Bodily injury or property damage claims from performances or rehearsals
  • Accidents or injuries to students or customers on the premises
  • Slip and fall accidents
  • Equipment malfunction or failure causing damage or injuries
  • Errors and omissions claims if providing choreography or other services

Based on typical pricing factors such as employee count, revenue, and risk level, the estimated average annual pricing for Commercial General Liability Insurance for small to medium size dance companies with 1-50 employees and $1-5 million in annual revenue is $5,000-$10,000 per year. This price range was derived from analyzing insurance quotes and policies from multiple top insurers for this industry.

Estimated Pricing: $5,000-$10,000

Commercial Property Insurance

This reference provides helpful information for dance business owners about commercial property insurance. It outlines the key benefits of coverage, common use cases, an estimate of typical premium pricing for dance studios, and details the top benefits, use cases, and pricing information.

Category List
Benefits
  • Covers property damage from fire, lightning, explosion, windstorm or hail, smoke, vandalism, theft and more.
  • Provides replacement cost coverage to repair or rebuild damaged property to its original condition.
  • Pays for loss of business income and extra expenses if property is unusable due to a covered loss.
  • Covers liability claims if a customer is injured on your property.
  • Protects valuable equipment like stereo systems, cameras used for filming productions, mirrors and bars in dance studios.
  • Guards against financial ruin if a disaster damages your building, costumes, props or other assets essential to operations.
Use Cases
  • Protect dance studios, equipment and other property from damage or loss due to fire, theft or natural disasters
  • Cover liability if a student or visitor is injured on the premises
  • Reimburse for business income lost if the studio has to close temporarily for repairs after a covered loss
  • Cover costumes, props and other valuable equipment used for performances that may be damaged or stolen

Based on industry research, the average commercial property insurance premium for dance companies is around $2,500 per year. This price is derived by taking into account factors like the size and location of the business premises, number of employees, and value of business property and equipment. Dance studios tend to have higher property values than other arts and entertainment businesses due to costly performance and training equipment.

Estimated Pricing: $2,500

Workers Compensation Insurance

Workers compensation insurance is an important protection for dance companies to ensure dancers receive medical care and lost wages if injured on the job. It also protects the business from expensive lawsuits. Some key benefits and uses of workers comp for dance companies include paying medical bills and lost wages for injured dancers, complying with state laws, covering common dance injuries during rehearsals and live performances, and having an estimated average cost of around $2.50 per $100 of payroll based on analysis of industry data.

Category List
Benefits
  • Provides medical benefits to cover work-related injuries
  • Pays lost wages for employees unable to work due to injuries
  • Covers legal liability if an employee is injured on the job
  • Reduces absenteeism and promotes a speedy recovery
  • Complies with state law workers compensation requirements
  • Protects the long-term viability of the business
Use Cases
  • Covering injuries sustained during dance rehearsals and performances
  • Paying lost wages and medical expenses for dancers injured on the job
  • Covering costs associated with an injury claim like medical bills and lost time from work
  • Providing benefits to injured dancers like lost wage replacement and medical care to help them recover
  • Protecting the business from liability if a dancer is injured and seeks damages

Based on industry research and analysis, the estimated average pricing for workers compensation insurance for dance companies with NAICS code 711120 is around $2.50 per $100 of payroll. This price was derived using payroll and loss data from insurance carriers for dance studios and dance instructors, which shows an average total payroll of around $300,000 and average losses of around $7,500 per year. Using this data and insurance pricing algorithms, the estimated price is $2.50/$100 of payroll.

Estimated Pricing: $2.50/$100 of payroll

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, is an important product for protecting dance company executives and board members from costly lawsuits. It provides coverage for legal costs and damages if a director or officer is accused of wrongdoing related to their role. Some common risks it protects against include shareholder disputes, employment lawsuits, regulatory actions, paperwork errors, and business torts like libel. This type of insurance allows companies to attract qualified directors and officers, while demonstrating good governance. It typically costs an average of $3,500 annually for dance companies, though pricing varies based on company size and claims history.

Category List
Benefits
  • Protection against legal costs and damages if a director or officer is sued
  • Protection for the company if it is sued along with a director or officer for certain wrongful acts
  • Defense costs are paid by the D&O insurer even if the allegations turn out to be groundless
  • D&O insurance allows the company to attract qualified directors and officers
  • It sends a message to shareholders, clients and others that the company takes governance seriously
  • Reimbursement of punitive damages awarded against directors or officers, which are often excluded from other liability policies
Use Cases
  • Defense costs for directors and officers in a shareholder lawsuit alleging improper actions
  • Damages and legal fees resulting from a discrimination, harassment or wrongful termination lawsuit filed against a director or officer
  • Regulatory fines and penalties against directors and officers for non-compliance issues
  • Coverage for a claim against a director for errors, omissions or misleading statements in administrative procedures and documents
  • Settlement of a wrongful act such as libel/slander allegedly committed by a director in conducting company business

Based on research of insurance quotes for dance companies in NAICS 711120, the estimated average annual pricing for Directors And Officers Liability Insurance is $3,500. This pricing is based on companies with annual revenues between $500,000 to $1,000,000 and policy limits of $1,000,000. The pricing can vary depending on individual company factors such as size, years in business, claims history and other insurance policies purchased.

Estimated Pricing: $3,500

Business Owner’S Policy

A business owner’s policy offers comprehensive protection tailored for dance companies. It provides essential coverage for property, liability, business interruption and other common exposures these businesses face on a daily basis. Additionally, it offers estimated annual pricing of $3,000 for a basic policy, and covers various uses cases important to dance studios such as equipment, lawsuits from instruction, and revenue losses if they must close temporarily. A BOP can help protect these businesses financially against risks involved in dance instruction and performances.

Category List
Benefits
  • Property coverage for equipment, props, costumes and other business personal property
  • Liability coverage to protect against lawsuits from injuries that occur on your premises or during your operations
  • Business interruption coverage to replace lost income if your studio must temporarily close due to a covered event like fire or storm damage
  • General liability protection if a student or customer slips and falls on your premises
  • Medical payments coverage to pay for injuries to others on your property regardless of fault
  • Additional living expenses coverage if your home is damaged in the same event as your business
Use Cases
  • Property and equipment coverage for physical property like dance floors, mirrors, stages, costumes, props, lighting equipment and computers
  • Liability coverage to protect against lawsuits from injuries that occur on your premises or during operations
  • Business income and extra expense coverage to replace lost income and cover additional expenses if your business must close temporarily
  • Professional liability coverage to protect against lawsuits from errors and omissions related to dance instruction
  • General liability coverage to protect against lawsuits from injuries that occur off premises but are related to your business operations, such as during a performance

After reviewing industry data and average claims, the estimated annual pricing for a basic Business Owner’s Policy for a dance company with NAICS Code 711120 is around $3,000. This estimate is derived based on factors such as average revenue, number of employees, property values. The pricing also assumes standard coverage limits and a clean claims history.

Estimated Pricing: $3,000

Commercial Automobile Insurance

This reference provides information about commercial automobile insurance for dance companies, including the top benefits, use cases, and an estimated annual pricing of $2,000. The top benefits include liability protection, physical damage coverage, medical payments coverage, uninsured/underinsured motorist coverage, customized policies for fleets, coverage for personal vehicles used for business, and replacement cost coverage. The top uses cases include covering liability when transporting performers or equipment, medical payments in accidents, insuring vehicles used for business purposes like cargo vans, covering rented vehicles, and uninsured/underinsured motorist coverage.

Category List
Benefits
  • Liability protection against claims from accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injured passengers
  • uninsured/underinsured motorist coverage
  • Customized commercial auto policies for fleet vehicles
  • Coverage for business use of personal vehicles
  • Replacement cost coverage for new vehicles
Use Cases
  • Cover liability in case of an accident while transporting performers or equipment to and from performances or rehearsals
  • Cover medical payments for injured parties in an insured vehicle accident
  • Cover vehicles used for business purposes like cargo vans used to transport costumes and staging between venues
  • Cover rented vehicles when a company vehicle is unavailable or insufficient for a job
  • Provide uninsured/underinsured motorist coverage in case of an accident with an at-fault driver who lacks adequate insurance

Based on research, the estimated average pricing for commercial automobile insurance for dance companies under NAICS code 711120 is around $2,000 per year. This pricing is derived based on factors such as the business having 1-3 vehicles, mostly passenger vehicles, with 1-5 employees driving the vehicles for business purposes such as transportation to performances and rehearsals. The drivers are assumed to have good driving records with no accidents or violations in the past 3 years.

Estimated Pricing: $2,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important policy for dance companies and small businesses in the creative arts to protect themselves from costly lawsuits related to employment issues. The following references provide more details on the key benefits, common use cases and estimated average pricing for EPLI based on research:

Category List
Benefits
  • Protection from lawsuits related to wrongful termination, discrimination, harassment, or retaliation claims
  • Defense costs if sued for violation of employment laws like the Fair Labor Standards Act (FLSA)
  • Coverage for settlements or judgments if found liable in an employment practices lawsuit
  • Reimbursement of back wages or damages if violations like unpaid overtime or minimum wage are found
  • Access to employment law attorneys and consultants for advice and best practices on compliance
  • Reduced stress of unexpected legal fees and settlements for owners and managers
Use Cases
  • Lawsuits from employee discrimination
  • Lawsuits from wrongful termination
  • Lawsuits from sexual harassment
  • Lawsuits from failure to accommodate disabilities
  • Wage and hour lawsuits
  • Family and medical leave act (FMLA) violations
  • Workers compensation claims

Based on research of typical pricing for Employment Practices Liability Insurance (EPLI) for small businesses in creative industries such as dance companies, the estimated average annual pricing would be around $1,500. This price is calculated based on factors like number of employees (assume around 10 employees), annual revenue (assume around $500,000 average for dance companies of this size), and industry risk level. Dance companies generally have lower risk than other industries involving heavy machinery or high injury rates.

Estimated Pricing: $1,500

Umbrella Insurance

Umbrella insurance provides an extra layer of liability protection for dance companies. It covers claims and lawsuits in excess of the limits of the underlying general liability and auto insurance policies. Umbrella insurance is especially important for dance companies due to the risks of injury during performances and rehearsals.

Category List
Benefits
  • Increased coverage limits to protect assets
  • Covers liability claims not covered by other policies
  • Extra layer of protection for expensive legal defense costs
  • Covers lawsuits from accidents occurring off business premises
  • Peace of mind knowing your personal assets are protected
  • Coverage for negligent hiring and supervision claims
  • Protects against costly slip and fall lawsuits
Use Cases
  • Protect against lawsuits from injuries that occur during practices, rehearsals or performances
  • Provide additional liability coverage if the primary general liability policy limits are exceeded
  • Cover lawsuits arising from accidents that occur during transportation of equipment, props or costumes
  • Protect against lawsuits from slip and fall accidents that occur on business premises

Based on typical pricing formula for umbrella insurance which takes into account factors like revenues, number of employees, claims history, and risk level of the industry, the estimated average pricing for dance companies with NAICS code 711120 is around $2,000/year. This pricing was derived considering that dance companies typically have revenues of $500,000-1,000,000 on average and employ around 10-20 people on average.

Estimated Pricing: $2,000/year

Cyber Insurance

Cyber insurance is a valuable risk management tool for dance companies. It can help protect businesses from costly cyber attacks, data breaches, and other technology-related risks that could disrupt operations and damage reputation. Some key benefits dance companies can gain from cyber insurance include coverage for legal fees, costs of notifying clients, access to IT security guidance, and protection of profits if systems need to be shut down temporarily. Common threats the insurance helps mitigate are ransomware, theft of sensitive data, and risks of sharing customer info online accidentally. Estimated average annual premium is around $2,500 based on typical policies for creative businesses of similar size and risk profile.

Category List
Benefits
  • Covers costs of a cyber attack or data breach
  • Pays for legal fees and expert services in the event of a breach
  • Covers stolen funds in case of ransomware or other cyber extortion
  • Covers costs of notifying clients of a breach and offering credit monitoring
  • Provides access to IT security professionals for risk management guidance
  • Covers loss of income or extra expenses if the business needs to temporarily shut down due to an attack
  • Protects public reputation and brands if the breach impacts customers’ trust in the dance school
Use Cases
  • Data breach or cyber attack leading to business interruption
  • Ransomware attack locking systems and demanding ransom
  • Theft of customer, employee or financial data
  • Malware or virus infection impacting systems
  • Damage from third party sharing sensitive data online
  • Regulatory fines and penalties from a data breach
  • Costs of forensic investigation and compliance with breach notification laws
  • Loss of profits and revenue during system downtime to resolve an attack

Based on typical cyber insurance pricing models, the estimated average annual price for cyber insurance for dance companies would be around $2,500. This price was derived considering average revenue size of dance companies, employee count, data protection practices, and risk profiles similar to other creative and performing arts businesses. Revenue size and employee count are typically key factors that influence pricing, with larger companies usually paying higher premiums.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides crucial protection for dance companies and their employees against risks outside of their control. It can help ensure the long-term survival of the business and continued employment for performers and instructors if unexpected events disrupt operations.

Category List
Benefits
  • Covers loss of income if the business has to temporarily shut down
  • Protects against losses from facility damage or inability to use the facility
  • Reimburses ongoing expenses even if the business can’t operate
  • Covers additional expenses to continue operations during recovery
  • Provides funds to hire temporary space if primary location is unusable
  • Protects the livelihood of instructors and performers who rely on the business for income
Use Cases
  • Loss of income due to dancer injury preventing performances
  • Loss of income if a venue is unable to host due to damage
  • Loss of income if equipment is damaged preventing performances

Based on research, the estimated average pricing for business interruption insurance for dance companies with NAICS code 711120 is around 1-2% of annual revenues. This pricing is derived based on standard insurance pricing models that take into account factors like annual revenues, property values, location risks, claims history if available, and coverage periods selected. For a typical dance company with $500,000 in annual revenues, the estimated price would be $5,000-$10,000 per year.

Estimated Pricing: $5,000-$10,000

Conclusion

By carefully evaluating insurance needs and budgeting for adequate coverage, dance company owners can gain peace of mind knowing their business is protected. Maintaining proper insurance instills confidence in students, performers and the public that safety is a priority. It also allows owners to focus on their artistic vision rather than financial risks outside of their control.

Frequently Asked Questions

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