Building a business can be tough! Especially when it may start as a side hustle…
All pole business owners need multiple types of insurance to protect from various financial threats.
Most Common Insurance Needs for Pole Businesses
The most common insurance for pole businesses is General Liability insurance.
General Liability Insurance
General Liability insurance is the most common insurance that all pole businesses including studios and solo-preneurs such as instructors and performers need. This insurance covers costs for all third party claims. For example, if a client enters your studio and sustains an injury, then the costs would be covered. Besides being hurt inside of your building, if a client bought an item, returned home, and it were to damage any belongings or injure the individual, this would also be covered. Another aspect of your business being protected under this form of insurance is advertising injuries such as copyright infringement.
For pole businesses, you need specialized general liability insurance depending on if you are an independent teacher, own a studio or an event. Not all insurances companies cover pole or aerial activities. The insurance may be specific for fitness instructors or personal trainers. You may also consider dance studio insurance or fitness training facility insurance depending on the details of your business. The IPIA works with Francis L. Dean & Associates which provides insurance in the United States.
Workers Compensation Insurance
Pole businesses who employee people such as instructors need this insurance. If your workers are not employees but are 1099 freelance consultants/independent contractors, then you do not need this insurance.
Workers can often encounter a myriad of problems at work—especially in our line of work!—and this type of insurance covers payments associated with these problems, including but not limited to injuries on the job that require them to be away from work for some time. If this were to happen, their wages would be covered by this plan. If a worker were to require medical care or hospitalization, the insurance would cover these costs. Besides these injuries, anyone who has to deal with some sort of disability (whether partial or permanent) would be paid disability benefits. Lastly, if an employee were to pass due to a work related accident, the insurance would pay death benefits.
Every state besides Texas, requires employers to purchase this form of insurance.
Commercial Property or Equipment Insurance
The two previous types of insurance cover claims involving employees and customers. Your business may also need Commercial Property or Equipment insurance if you have property/equipment like stage poles for your mobile party business and especially if you have a store-front such as a studio or a store that people can visit. All financial problems sustained from occurrences such as theft and any property damage to the business establishment would be covered by this insurance.
Other Less Common Insurance Needs
Pollution Liability Insurance
If your establishment was burning, Commercial Property insurance would take care of the incurred expenses. However, health problems like unhealthy air quality caused by smoke as a result of said fire, for example, would need Pollution Liability coverage. This type of insurance covers your business if it was the source of a pollution problem that would affect the surrounding area. This type of insurance is not common for pole-based businesses.
Commercial or Business Auto Policies
It’s not only imperative that you acquire insurance for all of your business property, including your physical place of business if relevant, but there is also the necessity for auto coverage if you supply your employees with road vehicles. Should an employee be involved in an automobile accident in a supplied work vehicle, this insurance will cover any incurred property or medical expenses.
Not all pole based businesses need this type of insurance, but if you do a mobile party business employing yourself and especially if you employee other people, you may consider this type of insurance.
Employment Practices Liability Insurance
Employment Practices Liability will cover the business for human relation occurrences. For example claims related, but not limited to, altercations between disgruntled customers and employees, sexual harassment, gender and/or racial inequality. All such instances make this insurance viable.
This is not currently a common insurance need for pole based businesses but it may be relevant to certain studios or teachers depending on their curriculum and their demographic.
Event insurance is a specialized version of general liability insurance. Read all the details carefully as some activities are not covered. This is relevant for pole event businesses such as competitions.
Event Cancellation Insurance
If you host an event and have to cancel, event cancellation insurance may cover costs of refunding attendees and any costs you are liable to pay such as to the venue. Read all the details carefully as some reasons for cancellation are not covered.
Having insurance is a critical part of having any business. Particularly in pole, where injuries can occur, make sure you and your business are safe. Research the appropriate type of insurance for your particular business needs.