Posted 7 months ago #
Trying to find some information on Liability Insurance for a Yoga studio opening up in January. Any direction you can point me in to find the pros and cons of different options available? Also, how long before the studio opens should I have this in place?
J
Leo Welder
Posted 7 months ago #
J- liability insurance is typically fairly inexpensive and the premium is based on the nature of the business as well as the estimated revenue of the business. The first business I started was a rock climbing guide service, so I thought the insurance might be prohibitively expensive. Turned out to be very reasonable (only a few hundred dollars for a year of coverage)- the only thing they didn't want me to do was provide transportation, because driving a car is far more dangerous than climbing.
We have written a simple how to with some basic information on how we recommend getting liability insurance here: http://www.choosewhat.com/how-to/get-small-business-insurance
I would make sure you have the liability policy in place the day you start operating the business. Sometimes it will save you in ways you don't expect. Our office was broken into when we first started the company, and we had some computers stolen. Our insurance covered the theft, which was a huge relief at the time.
Hope that helps.
Reece Freeman
Posted 7 months ago #
J- Thanks for the post! I've been in contact with our insurance broker about this question and, although he cannot post on our site at this time, here is his response:
"It is always best to select an insurance agent prior to starting a business. I would contact the agent no later than one month prior to opening your business and the sooner the better. An insurance agent is as important as an attorney, CPA, Financial Advisor or Real Estate Broker. You want someone you can trust to insure you properly. An independent insurance agent can find you the appropriate policy at a good price since they can access quotes from multiple insurance companies. Have them tell you the pros and cons of each policy and let the agent make the recommendation. Something to note is that is that unfortunately there are insurance agents out there who have not had their licenses very long and do not possess the insurance knowledge to help you make the best choice for your policy. It is always best to go with your gut and use someone you feel confident about. This could be someone who a friend or business contact referred- even then, however, do your homework and learn about the person you are putting your trust in and that they have been in the industry a while.
Insuring a business [such as a yoga studio] is a little different than insuring your home or vehicles where you can obtain instant quotes with some companies. Chances are it will take a good agent 5-7 business days to come up with options and make a recommendation for a business policy as the agent has to negotiate with insurance companies on your behalf and make sure they communicate your needs to the insurance company. There are many types of policies you can consider insuring a business which include: General Liability, Property, Business Income, Commercial Auto, Errors and Omissions, Worker's Compensation, Directors and Officers, Crime, and, if necessary, Surety Bonds. Make sure your agent understands your business and recommends policies that suit your needs. Once you have your policy or policies, make sure to communicate any changes going on with your business so the agent can make sure you are covered for those changes, and if necessary, can find a solution to seeing that you are properly protected. Best of luck!"
I hope this gets you started in the right direction. Let us know if you have any other questions.
Posted 7 months ago #
yeah this is great thank you guys.
Posted 1 month ago #
J i really don't know about this liabilty insurance. After reading this i will definitely ask some good question to my insurance agent regarding this. Thanks for informative post.
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