As a yogi entrepreneur you know that you need insurance for your yoga business, but did you know understanding your insurance policy is an important step in managing risks to your business? Here are 3 insurance terms you should definitely know and understand.
Commercial General Liability Policy
A Commercial General Liability Policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations, or your workers. It also covers defense costs (i.e., attorneys’ fees) if you get sued.
Here are a couple of instances in which your yoga business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:
You could be held liable if someone gets injured from an alignment or adjustment.
You could be sued if someone slips, trips, or falls in your class or studio space.
Basic property insurance usually covers losses caused by fires or explosions, theft, vandalism, and damage from vehicles (or airplanes - unlikely but it's covered). Additional coverage referred to as "endorsements" can be added to provide supplemental protection for things such as earthquakes and broken glass.The key items insured in yoga business property insurance include your studio space, equipment, inventory and outdoor items on the premises.
For example, property insurance covers if:
A fire destroys your building and your inventory (i.e. mats, clothing, water bottles, etc.).
A water pipe bursts causing damage to your studio space.
Typically, if you rent studio space, your landlord will require that you maintain property insurance.
Workers' compensation coverage is a state-mandated insurance program that covers lost wages and medical treatment resulting from an employee’s work-related injury or illness. It also covers services needed to help an employee recover and return to work. It can:
Pay for medical expenses and replacement wages when employees are injured at work.
Help you to comply with state Workers' Compensation laws.
Possibly pay for legal expenses if an employee sues over a work injury the policy doesn't cover.
Take a moment to review your insurance policies and to make sure you understand exactly which events are covered and which events aren't. And, if you have any questions about insurance or other topics related to running a yoga business, schedule a free consultation here.