Small business owners often don’t think about cybersecurity. It should be. 43% cyber-attacks on small businesses are targeted–since COVID-19 cyber-attacks have increased 300%. For very small businesses, protecting your business is often straightforward–avoid phishing scams and change passwords frequently. As your business grows, cybersecurity becomes more complex and important.
This glossary will help you to understand the terminology used in cybersecurity.
- 0.1 1. 1.Train Your Employees
- 0.2 2. 2. Protect your Passwords
- 0.3 3. Antivirus Software Available
- 0.4 4. You must ensure that your website is HTTPS
- 0.5 5. Backup all data
- 0.6 6. Keep your website and software up-to-date
- 0.7 7. Make a small business cybersecurity plan
- 0.8 8. Secure Wi-Fi
- 0.9 9. 9. Get a VPN Service
- 0.10 10. Protect all devices
- 0.11 11. Cyber Liability Insurance
- 0.12 12. 12.
- 1 Other Small Business Cybersecurity Tips
- 2 Glossary of Cybersecurity Terminology
- 3 Bottom line
1. 1.Train Your Employees
The most important takeaway from this list is that 95% cyber-attacks are human-caused. An employee clicking a link in suspicious emails or an employee causing data damage can be attributed to human error.
It is important to make sure you and your employees are aware about potential threats. Then, be prepared for what to do in the event of a computer hack or other infection.
These are the key points to remember when creating a training program.
The Key Points
- What is a secure password?
- How can you avoid phishing or social engineering attacks?
- How can I surf online securely?
- How do you identify suspicious links?
- Contact information for those who suspect or are affected by a cyberattack.
- How can you secure your home network, especially for remote workers?
- What and when should you use approved cybersecurity programs such as password managers and antivirus?
Training should be continuous. There are always new threats and schemes. A monthly bulletin should be prepared about the latest threats. To check their preparedness, some businesses send out fake attacks such as an email phishing scam.
Training employees about email phishing scams
Phishing scams are the most prevalent cybersecurity threat to small businesses. These emails are designed to steal usernames and passwords as well as sensitive information like a credit card number.
This is the main reason small businesses face cybersecurity problems. Employees are often victims of scams and give out private information via email. These scams are increasing due to remote work.
One of the greatest threats currently is for hackers to imitate a boss’s emails and ask employees to buy gift cards or transfer money for an event.
You should train your employees to be suspicious about emails that ask them to send money or confidential information.
These are some common ways to spot phishing scams:
- Incorrect domain names or unfamiliar in the email address
- Emails that contain links that are unusual, long, or strange will not be opened. If you’re given a link for Amazon, hover over it and it should begin with “Amazon.com” not a variation.
Tip Verify the sender if you suspect that an email has been sent. To see the complete email address, hover the cursor over the name of the sender. Never respond to suspicious emails! Replying to suspicious emails alerts hackers to your active address.
2. 2. Protect your Passwords
Passwords can be compared to keys. You need to secure them. It’s much easier to get a duplicate of passwords than keys. Your employees and you must ensure that your password security is up to par so that anyone who gets your password can’t affect your business in any way.
First, don’t use the same password repeatedly. Create a unique password for each account.
Secure communication should be:
- At least 10 characters
- Add a number
- Both lowercase and capital letters are acceptable
- Special symbol (! @#$%)
- Do not include any personal information, such as birthdays or dog names.
These are the guidelines that you should be directing your employees to follow. Everybody should change their passwords, or at least the most important ones, every three months. This is something we’re all familiar with, but it’s important to make sure that the password you use has a different number at its end.
This process of managing passwords can be time-consuming. Password managers are trusted programs. RoboForm Business can remind employees to change passwords according to a set schedule.
You can also ask your IT manager to send reminders on a regular basis. Consider making password resets a regular task if you use project management software.
3. Antivirus Software Available
Antivirus software scans the internet and data to protect your computer from malware. It detects suspicious behavior and blocks malware. It could also alert you about other, less-important threats.
Remember to be aware of known malware and threats. You must keep your antivirus software up-to-date with the most recent information.
Although most operating systems have decent antivirus software, businesses should still purchase an additional program. It is better to purchase it than rely on freeware (a version that comes with every operating system).
Additional features such as firewalls, web security, password managers, VPNs are available to purchase programs. Antivirus software costs anywhere from $10 to $100 per year.
4. You must ensure that your website is HTTPS
HTTPS websites offer additional security by using encryption. This is important to protect your website from cyberattacks. Google also penalizes websites without this additional security.
Example of a warning for a website without an SSL certificate
You can use your SSL certificate if you have it already. This can be done by many web hosts for free or for a small charge.
If you are creating a new website for your business, the SSL certificate is likely already installed. This update is required for older websites.
5. Backup all data
While it won’t prevent a cyber-attack, backing up data will help you recover faster. It is important to have a backup system for all your business data. Many programs make it easy to do this automatically so that you and your employees don’t have to make copies.
An external hard drive, or server, can be used to backup and store data on-site. You can schedule backups to an external location with security programs such as Norton.
You can also choose to backup to the cloud. This cloud-based backup is more reliable than “cloud-based solutions” such as Office 365. It stores files in the cloud. Cloud-backups copy all data on a computer, unless you tell them what files to save.
Cloud-based backup solutions such as Carbonite work in the background, and employees are not aware of them. This protects your server from attacks and also prevents physical damage. Most cloud-servers store data in other locations. Cloud-based solutions should include both cybersecurity and licensing. This includes encryption, TLS protocols, and physical security.
Tip Employees should not set up cloud storage services for their work. These create security vulnerabilities that you cannot control. The company-approved cloud service should be used by employees. Cloud storage can be as low as $1 per gigabyte. If you’re attacked and need to rebuild information, cloud storage is invaluable.
6. Keep your website and software up-to-date
Sometimes people are unable to update software because they feel comfortable with the older version’s interface. Software companies, not just antivirus software providers, update their software to fix security holes they find in their programs.
It is important to keep your technology current, especially if you own a WordPress site. Hackers are known to infiltrate sites using outdated WordPress themes or plugins. You should log in at least once every three months to check for any updates if you manage your site.
7. Make a small business cybersecurity plan
Your business should have a plan for cybersecurity. The plan should outline what to do in case of a hack or threat to the business. It should address how to protect your servers and computers as well as how to deal with stolen vendor, employee and customer sensitive information.
It is important to have a plan, a team, and regular reviews to ensure that everyone can follow through if something does happen.
It’s important to keep the checklists and plan printed, as computer attacks can be very sophisticated.
In your cybersecurity plan, include the following:
- A team: At the minimum, you should have a leader, legal counsel and someone in IT. You also need a point-of-contact to get in touch with any other parties. Multiple roles can be played by one person.
- Other sources: These are people you can contact for outside assistance such as computer forensics specialists to repair the damage, marketers professionals to issue statements and your broker for cyber-insurance for loss claims.
- Who is potentially affected by your data breach? Think about your employees, customers, and vendors. Also, consider what privacy information you have for each.
- List other sensitive information: Are you a holder of confidential documents that could be compromised by hackers?
- List and deadlines of legal obligations: Who and when should you contact?
- Make checklists for specific breaches
- Date and time of the breach
- Who should be contacted
- A physical or virtual perimeter is created around the affected systems
- If necessary, take the affected system offline
- Interviewing people with critical information about the breach
- Make a copy of the affected system to fix it without damaging the assessment
- Take immediate actions to reduce damage and establish future protections
- Notifying federal, state, and local government agencies about the breach
- Recovery metrics These are your milestones and goals, which you use to report to your board of directors or customers as required.
Tip Make sure that your small business cybersecurity plan includes steps to restore systems and preserve evidence for further investigation. It is crucial to keep daily backups of your data.
8. Secure Wi-Fi
Secure Wi-Fi helps protect against online threats. It encrypts and password-protects your internet connection. You must ensure that your public Wi-Fi is secure. You will typically need to purchase an additional Wi-Fi feature modem from your internet provider in order to achieve this level of security.
Secure Wi-Fi can also alert you if you attempt to navigate to dangerous websites. It prevents malicious traffic and unwanted remote access from any device, including smartphones. This is an addition to antivirus software and not a replacement.
It’s easy to use smartphones and tablets to work, but employees should be discouraged from using public Wi-Fi.
Hackers can hack into computers using public Wi-Fi that is not secured. You should not trust public Wi-Fi that is secure. It is impossible to know what level of security the Wi-Fi provider provides or what it is recording.
9. 9. Get a VPN Service
VPN (virtual private networks) are a method to protect an internet connection over a public connection.
You should consider a VPN for employees who work remotely and have sensitive data. It provides a secure tunnel between the remote server and the home user. VPNs mask your employee’s IP address, making it more difficult for hackers to access private information.
Avoid free VPN services that may offer you anonymity. These VPNs often make money by selling your data on to third parties.
10. Protect all devices
Secure all company tablets and smartphones. If possible, provide employees with business devices. This separation of business and personal keeps confidential business data off employees’ personal devices.
Employees should not store business information on any devices they share with their family, friends, and/or housemates if this is impossible. Employees should also ensure that their devices are secured with a password or pin number. Encourage employees to use the same level security on personal devices that they do at work.
- Keep your programs current
- When possible, use encryption
- Backup data
- Antivirus software is a must
11. Cyber Liability Insurance
Cyber liability insurance protects businesses against losses and damage due to cyberattacks or data breaches.
Cyber insurance is an option if:
- Take advantage of credit card payments
- Keep confidential information that is important to your company safe
- High risk due to at-home workers
Prices will vary depending on the level of risk and coverage chosen. For small businesses with moderate risk, the annual cost is typically between $1,000 and $2,500.
Cyber liability insurance covers can be of two types:
- First-party coverage covers costs incurred by your company such as customer notification, forensic service to repair the damage or lost income due to halting operations while you solve the problem. This may be covered by your business insurance.
- Your customers may suffer losses through third-party liability. These expenses include attorney fees and settlements against you company, government fines and defense before regulatory board.
Cybersecurity can be complex. A managed security provider can handle your cybersecurity if you are a medium-sized company. It can help with:
- Installing firewalls
- Antivirus protection
- Training employees
- Managing mobile devices
- Multi-factor authentication
- Backup and Recovery
- Assessment of network vulnerabilities
You can hire a consultant firm to examine your security system and find any weaknesses if security is a concern.
Do your research and find a company that is well-known in your country before you hire a cybersecurity provider. It will vary depending on what services you need, but it may be less expensive than a full-time IT professional.
Other Small Business Cybersecurity Tips
- Limit access to equipment : Particularly computers that contain sensitive information. You might consider a check-out and check-in process to equipment.
- Set permissions: Limit employees’ access to program or information.
- Turn off computers Every day: Make sure employees turn off their computers or lock them before they leave for lunch or the next day.
- Ask employees at-home to change their Wi-Fi passwords. Employees who use their personal Wi Fi to log on to work computers from home will need to be able to access it securely.
- Unique usernames should be used for each account. Although it may take more effort to create unique usernames for each account, you would not want the same username for multiple accounts if any were to be compromised.
- When possible, use 2-factor authorization This is when a second step to a login is added after the first one–a text message, phone call or email–to verify the user’s identity.
Glossary of Cybersecurity Terminology
- Unwanted Advertising:Unwanted advertisements that appears repeatedly on a screen. It is often hard to remove.
- Botnet Attack:Malicious software allows hackers to access your network without you knowing, such as sending spam.
- Breach When a hacker exploits a security flaw in a computer, device or network and gains access to its files and network.
- Browser Hijacker is Malware which modifies the settings of a web browser without user permission. It can insert unwanted advertising in the browser, replace homepages and search pages with the hijacker’s page.
- DDoS –Distributed Deny of Service Attack – Flooding a website or server with malicious traffic to render it inaccessible.
- Firewall isHardware that prevents unwanted programs from invading computers or networks.
- IP: A unique internet number that is specific to your location, similar to a home address but for your computer.
- Keyloggers Surveillance: Surveillance records keystrokes in order to find passwords and sensitive information.
- Malware Software that aims to harm users or the software they are running.
- Phishing is A technique to obtain sensitive information. Commonly, an email pretending to be someone else and asking for financial details.
- Ransomware These programs lock victims out of their computers and often demand money to unlock them.
- Spam – Another name to refer to unsolicited emails
- Spyware is Software that allows a user to steal sensitive information from a computer’s hard drive.
- Trojan Horse This program can look legitimate, but it can overtake your computer and disrupt, steal or damage your data.
- Viruses A piece of code that copies itself and corrupts data, programs, or systems.
- VPN: This tool masks your IP address and encrypts all your data to keep you anonymous online.
- Worms A program which spreads to other computers and causes damage to yours.
Cybersecurity can be easy to forget. It is rarely a problem until it is too late. Cyber-attacks cost an average $57,000. Small businesses cannot afford this, especially now. To protect your networks and information, it’s worthwhile to invest in antivirus and password managers. Make sure your employees are trained in the most popular schemes and kept up-to-date on current threats.
The legalized marijuana industry is growing at a rapid pace, with a projected $13.6 billion increase in revenue. It’s expected to reach $85 billion in revenues by 2030. Not all cannabis products are created equal.
There are two main types of cannabis-derived products.
- THC-based: Made with tetrahydrocannabinol, the primary psychoactive component of cannabis. THC is more tightly controlled and gives users a high. Marijuana, a high-THC strain of cannabis, is legal.
- CBD-based Made with cannabis, which is mostly medicinal and not psychoactive. CBD is more popular because it doesn’t give you a high. Although CBD can be extracted from cannabis, the majority of CBD products are made from hemp (cannabis plants containing less that 0.3% THC).
- THC-based products are legal in California since 1996.
- CBD-based products really started to take off after the 2018 Farm Bill significantly expanded legalized hemp uses.
- US CBD sales are expected to exceed $1.9 billion by 2024.
In the next five-years, will CBD sales surpass those of high-THC products? Here are three reasons we think so.
1. CBD is easier to regulate than THC
Because CBD isn’t psychotropic, CBD products are much easier to legalize. It’s much easier to sell a product once it has been approved by a regulatory agency, such as the U.S. Department of Agriculture and the Food & Drug Administration.
- The stock price of GW Pharmaceuticals soared by 36% in two months after the FDA approved Epidiolex , a CBD-based epilepsy treatment drug, hit the news on March 2018.
- The 2018 Farm Bill legalized regulated hemp production. It was defined by the USDA as a cannabis crop containing less than 0.3% THC. This is what many CBD products, such as oils and gummies, are eligible for.
- The 2018 Farm Bill passed, and the CBD industry’s growth was projected at 562%.
Epidiolex, the only CBD product that has been approved by FDA as of today’s writing, is currently available in all but 11 states. CBD is currently allowed in food Another 16 states allow it, but with some restrictions. The market is so wild, as shown in the map below of US cannabis legalization, that many companies hesitate to promote and expand their products for fear of being caught in a state’s regulations.
But an amendment to the Federal Food, Drug, and Cosmetic Act proposed at the beginning of 2020 would define CBD as a dietary supplement, paving the way to allowing it in food products. Movement on the amendment is currently stalled because of the pandemic, but if it eventually passes it could reshape the marketplace.
2. Growing CBD Niches: Edibles and Skin Care. Pet Products.
While many people are familiar with the benefits of inhaling marijuana, there is growing consumer interest in CBD-infused edibles and skin care products. These products can all be made with CBD or THC, but the relaxed regulations make them easy to stock in supermarkets or other major outlets.
- A 2019 Ipsos poll showed that more than half of respondents indicated they would likely consume CBD in their food.
- Analysts believe that the CBD edibles market could reach $22 billion by 2022. Gummies, in particular , will sell $6.94 Billion globally by 2025.
- Global CBD skin care market is expected to reach $959 Million by 2024. This will surpass its 2018 value of 35%.
- The market growth for CBD products for pets could surpass $1.7B by 2025. This may not surprise considering 74% CBD buyers own pets.
Cannabis edibles all around Profit margins are much higher They are more popular than products that can be smoked. Hemp-derived products sell better than marijuana-derived ones. They promote wellness and not high. The chart below shows that the sales of CBD products derived from hemp will almost double those of marijuana-derived CBD products by 2022.
3. CBD has the edge because of cultural and marketing differences
Cannabis has a cultural baggage. Until recently, it was considered anti-cultural and associated with illegality, even though decriminalization is now common. Hemp-derived CBD products, however, are a completely different story. Although they lack the THC required to create a high, their advantage lies in their legitimacy on the mass market.
The chart below shows that CBD is more popular than THC for its health benefits, with more people citing control over inflammation, seizures and anxiety as the main reason they switched to CBD.
And a look at the demographics of CBD vs THC users reveals perhaps one of the most vital reasons for the projected ascendance of the former: the female consumer.
- CBD is preferred by more women (55%) than it is by men (49%).
- Women account for 85% all consumer purchases and a staggering 93% of all over-the-counter medication purchase .
- It is believed that up to 75% CBD brands have female founders and general managers.
Research shows that CBD companies can increase their appeal to women if they continue to market to them.
Blended CBD/THC Products: The Entourage Effect
Terpenoids, or terpenes, are substances that can be extracted from cannabis. Some researchers believe that THC’s psychoactive effects can be tempered by terpenoids. They also believe that terpenoids may have an “entourage” effect on THC, CBD and terpenes. This is because the hybrid compounds are more effective, but produce less severe side effects than the “pure” ones.
These cannabis blends could be the “wildcard” to change everything. They combine the best of CBD and THC with a variety terpenes.
The validity of the entourage effect at the moment is still being debated. The curious can still purchase “sampler packets” from companies such as Care by Design Hemp, which contain products with different ratios.
Legal cannabis-derived products will be legal for the foreseeable future. What will be the dominant product on the market? THC or the much more domesticated CBD. Sometimes, a popular hit is from a sexy source.
Insurance for disc jockeys (DJs) is not a policy. This term covers all policies that protect DJs from business losses due to expensive equipment, interactions with guests and hosts, as well as any other potential loss. DJ liability insurance can cost between $180 and $450 per month, depending on the carrier.
Simply business makes it easy to get DJ insurance. You get primary coverages such as general liability, professional liability, errors and omissions. It will help you locate affordable, tailor-made insurance options through top insurance providers such as Markel, CNA and Hiscox. You can get started online in just minutes.
- 1 How DJ Insurance Works
- 2 DJ Insurance Prices
- 3 DJ Insurance Costs and Deductibles by Policy Term
- 4 Types of DJ insurance
- 5 Bottom line
How DJ Insurance Works
DJ insurance refers to the various policies DJs, VJs, and KJs need to protect their business risks. Because of the nature of DJs, VJs, or KJs’ work, as well as their frequent travels to different events, it is not surprising that they need insurance. A business owner’s policy (BOP) is a must for most DJs. BOPs combine general liability insurance with commercial property insurance to cover DJs for their most common issues: lawsuits against third parties and damage to their equipment.
The DJ insurance policies are basically a mix of policies that can cause DJs to lose their money. DJs can’t make money if they don’t have access to their equipment so they need coverage for commercial property. General liability insurance is also essential, as DJs are susceptible to being sued by partygoers and venue owners.
Because DJs travel between venues, they are also at risk. This may mean that DJs need to have commercial auto insurance, as well as inland marine insurance for their equipment while it is in transit.
Tip: DJs should have liability insurance, regardless of whether they are booked regularly or only for a handful of jobs per year. They can protect their assets by covering medical bills and legal fees if they are held responsible for property damage or physical injury.
DJ Insurance Prices
No two DJs are exactly the same. Neither are all DJ liability policies. The type of events you perform at, the number of bookings you make each year and your income will all impact how much you pay for DJ liability insurance. For DJ liability insurance, a DJ who performs primarily at private events will pay about $260 per year.
Many insurers provide coverage for much shorter periods of time. For DJs who book private events, a three-day policy can be as low as $60. These policies can be offered as special-event coverage .
DJ Insurance Costs and Deductibles by Policy Term
|Insurance policy||Annual Premium||Deductible|
$1 Million Occurrence/$2 million Aggregate
|From $180 to $450||From $0 to $1,000|
|$150 to $200||From $500 to $1,000|
$1 Million Occurrence/$2 million Aggregate
|From $600 to $1000||From $500 to $1,000|
|Commercial Auto||From $3,800 to $4.200||N/A|
This chart shows the average cost of DJ liability insurance and property coverage separately compared to a BOP. A BOP that includes liability and property coverages usually has a lower overall cost. Comparing policy terms between different brokers and insurance providers can help you get a better idea of the cost of insurance.
A DJ liability policy that covers both hired and unowned autos is a good idea if you rent trucks all the time, even though it may be more expensive.
These premiums are an average and may rise for DJs who:
- You need property coverage to protect their equipment while in transit or at the venue
- You may need higher limits
- Include light shows, fireworks or other performers into your acts
- Book gigs at nightclubs
- Shows that go past 2 a.m.
- You can play to larger groups
Tip: The type of equipment you use will affect the liability limits you set. This is something you should discuss with your agent when discussing liability limits.
Types of DJ insurance
A BOP is one popular DJ insurance policy. A BOP is a DJ insurance policy that combines general liability and commercial property coverage in a cost-effective package. Mobile DJs need inland marine coverage to protect their venues.
The Most Common Types Of DJ Insurance
|Types of insurance||It covers|
|General Liability Insurance||Third-party claims for bodily injury, property loss, and advertising injuries|
|Commercial Property Insurance||When business property is stolen, lost, or damaged, it can be worth its value|
|Inland Marine Insurance||Business property lost, stolen or damaged during transit may have a value of $500,000|
|Commercial Auto Insurance||The policyholder’s liability for accidents and the value of the vehicle as a business vehicle if it is stolen or damaged.|
These are the most popular policies DJs buy. However, there may be other risks that DJs need to have additional coverage. In most states, workers’ compensation insurance is required for DJs who have employees.
Most DJs qualify for a BOP. BOPs often combine general liability insurance and commercial property insurance. Insurance providers will often offer DJs additional coverage at a lower rate, such as commercial auto or inland marine.
DJ General Liability Insurance
DJ general insurance protects you from interactions with other people, including clients, venue owners, party guests, or audience members. General liability covers you if one of these people accuses of causing their injury, or property damage. General liability insurance also covers defamation and copyright infringement lawsuits.
Imagine, for instance, that your sound system blows up and a spectator gets hurt while trying to figure out how to get home. If they sue, DJ liability insurance usually pays for their medical bills and legal fees. You can also get it if the artist claims that you have used their music without their permission.
A fundamental insurance policy is general liability. General liability insurance is essential for anyone who owns a business, even DJs who book only a few gigs per year. For DJs who upload remixes or samples online, copyright infringement coverage might be attractive. Some DJ insurance policies may not cover copyright infringement. Make sure to check your policy.
Tip: Part time DJs who only do two or three weddings per calendar year are exempt from the need for annual DJ liability insurance. They can instead get event insurance to meet their coverage needs.
DJ Commercial Property Insurance
Your business’s commercial property insurance will cover the workspaces you own as well as any items inside them. Commercial property insurance covers your items if they are stolen or damaged. This is less your deductible.
Commercial property insurance is important for DJs, video DJs (VJs), or karaoke DJs. It helps them return to work quicker. If they are working out of another building than their own, DJs might also need property insurance.
If they are:
- Hire equipment: Rental equipment is usually excluded from commercial property coverage; DJ liability insurance often covers damage to rented or borrowed equipment.
- Renting business space: Commercial landlords have to take care of their property. However, most landlords will require tenants to have general liability coverage.
- Work from their home: While a standalone commercial property policy might not be enough coverage for a home-based DJ, you still need business insurance. Other options include a BOP or a business rider to your home insurance policy, or an in home business policy.
Tip: Your homeowners policy will not cover your business if it is located outside of your home. It won’t typically cover business activities. To cover your DJ equipment, you can either add a business rider to your home insurance or get a BOP. You have two options if neither of these work: you can get separate commercial property and general liability insurance.
provides more information about home-based businesses policies.
DJ Inland Marine Insurance
Inland Marine Insurance is a type insurance that protects your equipment while it’s being moved. Your belongings are only covered by commercial property insurance if they’re located in a particular location. Inland Marine covers your property if it is damaged or destroyed during transit.
Inland marine insurance is required for DJs who transport expensive equipment to other venues. It might be necessary if you borrow equipment from another DJ. You can become a bailee if you borrow a DJ’s karaoke equipment. As long as the machine is in your possession, you are responsible for it.
If they are contracted with venues with their own equipment, DJs do not need inland marine. If they rent trucks, they may not require coverage. Most truck rental companies offer coverage to protect their property.
DJ Commercial Auto Insurance
Your DJ business’s cars, trucks, and vans are covered by commercial auto insurance. Most states require that you have liability coverage in order to be able to pay for damages if you are involved in an accident. You can, however, add additional coverage to your personal auto insurance if you are willing to pay more.
Some examples of commercial coverage include:
- Insurance: Covers you and your passengers for injuries
- Collision: Insures your car against damage
- Uninsured or underinsured motorist. Covers damages caused by another driver but not paying.
DJs with cars registered to their business are required to have commercial insurance. However, those who drive their cars for work might also need it. Personal auto insurance does not cover business driving. Therefore, accidents between gigs might not be covered. DJs who rent trucks or vans can opt out of commercial auto insurance.
Insurance for DJ Equipment Failure
Equipment breakdown insurance can provide funds to help protect your company’s electronic equipment against sudden malfunctions. Commercial property insurance covers damage due to fires and other external factors, but equipment breakdown insurance covers damage caused by internal forces such as power surges.
To ensure that their equipment is protected in the event of an unavoidable problem, DJs should consider adding equipment breakdown insurance to their commercial property insurance.
Additional Types of DJ Insurance
While most DJs work solo, they might need to have additional coverage if they have staff.
These are the three most common insurance policies for DJs and their employees.
- Workers’ compensation insurance : Employers must have workers’ compensation in all 50 states. It covers employees for work-related injuries or illnesses and pays their medical bills.
- Commercial crime insurance : This policy covers theft from your company or clients. It does not cover illegal acts by you or your business associates.
- Non-owned and Hired Auto Insurance: Hired auto (HNOA), covers your liability for cars that you borrow, rent, hire or lease. You may also need a policy if the vans you are renting are used to transport equipment. This coverage may be required if your employees use their own vehicles to do job-related tasks, such as checking out a new location.
Workers’ compensation is the only law-required one of these three. HNOA coverage and commercial crime coverage might be a good idea depending on your specific risks.
Are you looking for the best insurance broker or provider? Our buyers’ guide is specifically designed for DJs.
DJs are known to be very concerned about liability insurance. DJs are exposed to many liability risks due to the amount of people they work with and the equipment that they use. By becoming insured DJs can not only protect their assets, but also meet the contractual requirements of many venues.
However, DJs may also want to consider additional insurance for automobile accidents and property theft.
The interior designer insurance policy is a business owner’s plan (BOP). It provides affordable coverage for personal injury and property damage, with annual costs of $1,500. Professional liability coverage is also recommended for interior designers. It has a minimum cost of $1,200 per annum and can be combined with commercial auto insurance, which ranges from $1,000 to $4,000.
The Hartford, a highly regarded company, offers insurance specifically designed to meet the needs of interior decorators and designers. The Hartford can help you bundle coverages into a BOP to get the best coverage for your small business. Get a quote from The Hartford in just a few clicks.
- 1 How Interior Designer Insurance Works
- 2 Interior Designer Insurance: What is the Cost?
- 3 Types of insurance for interior designers and decorators
- 4 Top Interior Design Insurance Providers
- 5 Bottom line
How Interior Designer Insurance Works
Interior designers cannot buy just one policy to provide all their needs. They can combine multiple essential policies into one BOP. BOPs are often offered by insurance companies that allow you to add on additional coverages like professional liability and commercial auto insurance. This allows interior designers to have comprehensive protection under one policy.
Bundled coverage can be convenient and save you money in many cases. Interior designers need to choose the right provider to provide the protection they require for various risks. They could be sued, and their office, vehicle, or property may suffer damage.
Interior Designer Insurance: What is the Cost?
Interior decorators and designers insurance costs will vary depending on what coverage you require. The average annual cost of a BOP is $500 to $2,500 for $1,000,000 in coverage, while professional liability policies run around $1,200 for $1,000,000 in protection. The cost of commercial auto insurance is between $1,000 and $4500 annually.
|Insurance Type||Annual Premium Cost||Deductible|
|BOP||From $500 to $2,500||From $0 to $500|
|Professional Liability Insurance||From $1,200 to $2,500||From $500 to $1,000|
|Commercial Auto Insurance||From $1,000 to $4,500||$500|
|Workers’ Complement||$550 – $3,000||$0|
|Cyber Liability Insurance||$600 – $4,000||$0|
There are many factors that affect how much you pay for insurance coverage.
- Your credibility, years of industry experience: Professional Liability coverage is less expensive if you are an experienced interior designer without any history of claims. You can expect to pay higher if you are just starting out, or if you have been sued in the past.
- The number or vehicles of employees you are insuring. Workers’ Compensation coverage is more expensive for those with more workers, while commercial auto insurance can be more expensive for those with multiple or more expensive vehicles.
- The property’s value: If your design studio is very expensive and contains antique furnishings, you will need more protection for property damage. To get more protection, you will need to pay higher premiums.
Tip – Because you may need multiple types of insurance coverage you will be charged more if you have them from different companies. It is best to get insurance that meets all your needs. Bundled coverage is a way to get insurance at a lower price. This will not only save you money but also make it easier to file a claim.
Types of insurance for interior designers and decorators
Designers have two protections: protection against property damage and protection against lawsuits. Workers’ compensation coverage is often required because many designers employ employees. Designers can be protected while they travel to clients or stores with commercial auto insurance. Professional liability coverage covers a designer in the event of a lawsuit.
The Most Popular Types of Insurance For Interior Designers and Decorators
|Types of Insurance||What Does It Cover|
|BOP||General liability and property damage|
|Professional Liability Insurance||Professional failures can lead to professional liability|
|Commercial Auto Insurance||Work vehicle accidents can cause damage or even lawsuits.|
|Workers’ Comp Insurance||Workers in a design company can be injured|
A BOP policy is a must-have for every designer. This policy provides two types of coverage: general liability coverage as well as property damage coverage.
The following scenarios are covered by a BOP:
- A BOP includes commercial general coverage to protect a designer who has a client slip and fall in the studio. It covers any lawsuits that may arise from injuries or property damage caused by the designer.
- Property damage coverage covers the cost of both the repair and replacement of furniture damaged by fires in the design studio.
Designers are at least somewhat vulnerable to someone getting hurt on their premises. A BOP is an essential purchase for most designers.
Professional Liability Insurance
Interior designers provide professional services. The Bureau of Labor Statistics lists states that have licensed interior designers to advertise their services.
If you offer bad advice and recommend a floor that is easily damaged and are sued by the homeowner, a professional negligence insurance policy would pay the legal fees.
Designers could be sued
- Overbudget projects
- Advice that doesn’t work
- Additional costs can be incurred due to mistakes in measurement
- Failure to finish a project within budget or time
Professional liability insurance is also known as errors and omissions coverage. It pays for legal defense costs, and any settlements or judgments that result from professional misconduct lawsuits. This insurance protects professionals who make mistakes or are negligent in providing expert advice to clients. This coverage will protect interior designers from potential lawsuits and help them to pay their defense costs.
Tip – Insurance companies consider the possibility of a claim. A long-standing track record of success as an interior designer can increase your chances of getting the best coverage. Professional liability insurance can be affordable if you have at least three years’ experience.
Commercial Auto Insurance
Your personal auto insurance may not cover you if you drive personal or business vehicles to clients’ houses. This is because commercial driving policy exclusions can apply. To protect yourself and your property, you will need commercial insurance.
Designers and decorators frequently drive to clients’ homes to look at samples or furniture and view spaces that need decorating. Sometimes, they may transport furniture or materials to clients’ homes. Designers are at risk of an accident while driving. Commercial auto insurance covers damage to cars and legal costs resulting from collisions.
Commercial auto insurance is not necessary if you don’t drive for work or if no one in your company has a work car. If you drive for work, however, you shouldn’t be left uninsured or rely on your auto insurance.
Workers’ Compensation Insurance
Designers might employ support staff such as a receptionist or movers to transport furniture and materials. Workers’ compensation insurance is required for those who work for you.
Workers’ compensation insurance provides protection for you and your employees, providing disability and medical benefits in the case of an injury at work. You may also need to have coverage. States have different rules and require you to purchase a policy. However, some states won’t require you to buy workers’ compensation insurance if you don’t employ multiple workers.
Workers’ compensation is not required if you do not have employees. If you have employees and you have incorporated your company, you might need workers’ compensation coverage if the state law requires it.
There are other types of insurance for interior designers
You might consider cyber-liability insurance if you store client records on your computer, or use expensive software in your design process. You are protected from any lawsuits if there is a data breach. The cost of cyber liability insurance for interior designers is between $1,000 and $7500 per year.
If you are responsible for overseeing projects and also provide advice on interior design, consider contractor’s insurance. Connecticut, for example, requires contractor’s insurance for large contractors who work on commercial, residential, or industrial projects. It is important to note that contractor insurance can be expensive. Builder’s risk insurance could cost you anywhere from 1% – 4% of project costs.
Top Interior Design Insurance Providers
|The Hartford||Bundled coverage offers convenience and cost efficiency|
|Hiscox||Interior designers needing specialized liability insurance that is fast and affordable|
|ASID Insurance||Get affordable coverage with the only policy that is specifically tailored for interior designers|
|Veracity||In-house underwriting allows for quick approval of design firms of any size|
|Insurance||Interior design companies that are small need to get quotes in under 15 minutes|
The Hartford, one of the most reputable insurance companies in the country, offers policies across all 50 states. The Hartford is known for its ability to innovate and create policies that are affordable, but also offer more coverage options than other insurance providers.
It is unique that The Hartford makes purchasing bundle coverage easy with its Spectrum Business Owners’ policy. Interior designers can enjoy a wide range of optional coverage through The Hartford’s Spectrum Owners’ Policy. You will also have the option to increase your tier within the Spectrum options, which is sometimes referred to as your Stretch level.
Hiscox is a specialist in small business insurance and understands the risks that clients, such as interior designers, face. Hiscox can create customized policies that meet specific coverage requirements. Interior designers can also pay their annual premiums monthly at no extra charge. After completing a short, no-obligation application, you can get a quote online.
The American Society of Interior Designers (ASID) is the best at understanding the needs of interior designers. ASID and The Insurance Exchange have teamed up to develop insurance products that protect their members. ASID Insurance will provide you with the best industry professionals and unbeatable products.
Veracity can be a great option if you have a small or large design company that requires coverage. You also want to get it approved as quickly as possible. Veracity is a binding authority with top-rated insurers. Its unique in-house underwriting means you can get coverage faster and still have the option to shop around.
Insureon focuses on small businesses. It is ideal for interior design firms that need to get as many quotes as possible. Insureon is quick and easy to use. You can fill out one application and get multiple quotes from different providers in just 10 minutes. A small-business agent can help you choose the right policy for you.
Although interior design may seem like a low-risk occupation, it can lead to significant financial loss if you don’t have enough coverage. Bundled coverage is a way to ensure your business is protected in the event of a disaster.
Additional insured coverage and loss payee coverage can extend insurance coverage beyond the insured. Contractual agreements often allow for third-party coverage. A loss payee is different from an additional insured in that they can collect payments from the insurer.
The general liability policy does not cover , but neither the loss payee nor the additional insured can change the coverage. They just change who is covered and who is paid out in a claim.
- 1 What is an Additional Insured?
- 2 What is a Loss Payee and How Does It Work?
- 3 Bottom line
What is an Additional Insured?
Additional insured refers to a person or entity that is exposed due to your business operations. It is covered by your insurance policy as an extension of your coverage. The additional insured is listed on your insurance policy’s declarations page. Although listed, it is not considered a named insured and does not have the right to make any changes or receive checks for claims payments.
Example of an Additional Insured
The lease contract for commercial property will specify the amount of insurance that you must have and the requirement to include the property owner as an additional insured. Your liability is for the property owner in cases such as a slip-and fall accident at your location. However, the property owner requests to be covered by your policy. Your policy protects the building owner if someone sues. This is common in general responsibility or business owner’s insurances (BOPs).
Additional Insured Rights
When an additional insured is named on a business policy, there are certain rights. These rights include:
- Protection from liability
- Insurance benefits
- Only those who have a direct interest in the protection of liability claims are eligible for coverage
The policy is not in the full control of the additional insured. They are not able to change the policy, increase coverage or make cash claims. Their name will not appear on the check if they are not listed on the policy as a loss payer.
How to add an additional insurance
In general, an additional insured is added when requested by a third-party with whom you are contractually engaged. It could be a leasing company that leases your commercial space or another business you are subcontracting or working on a major project.
It is important that you specify when your business would like to be added to another company’s insurance policy. You will need to add your business to their insurance policy if you hire subcontractors or allow someone to use your space for business purposes.
How to add an additional insurance
With a little information about the third person, your insurance carrier may be able to add them as an insured. They will ask for the legal name, address, and telephone number of the third party. If there is a contract number, they will take it. Although most insurance companies don’t charge extra to add additional insureds, it is worth checking with your provider.
What is a Loss Payee and How Does It Work?
An additional insured has more rights than a loss payee. When it comes to property loss, the name insured is not entitled to any claims. This is because the loss payer retains an insurable right in the property, while an additional insured is only mitigating their potential liabilities.
Example of a Loss Payee
A mortgage company that owns commercial property is an example of a loss payer. If the property is damaged or destroyed by fire, the mortgage company will be the most vulnerable. They want to ensure that the funds used to repair or rebuild the property are used in the event of a loss. This is why they have the right to the funds. A frustrated business owner could claim the money and then abandon the property.
Loss Payee Rights
The loss payee is entitled to the first property claim proceeds. However, they do not have complete authority over the policy. They cannot cancel, change or increase coverage. They have the following rights as loss payee:
- Right to insurance benefits – First right to any proceeds from any property claim for which they have an insurable interests
- Property protections available to all
Insurable Interest A party with an insurable interest can suffer financial loss if there is a claim. This is often seen in property insurance.
How to add a loss payee
When you buy or lease commercial property such as machinery, real estate, or heavy equipment, a loss payee may be requested to be included. A bank may request that you assign a loss payer to it if they provide you with a loan, line or credit.
How to add a loss payee
Talk to your insurance company to add a loss payer. They will need to know all details about the party including their legal name and address as well as contact information. The loss payee does not change the underwriting of the policy. However, it is best to verify this with your insurance company.
It is important to have the correct third-party designations in your insurance policy so that everyone is properly protected. The third party will most likely tell you if they should be added insured or loss payer. If they refuse to tell you or request more rights, keep in mind that the loss payer has an insurable right in your property. An additional insured needs to be released from liability.
Dance instructors require multiple policies to insure their studios, as there isn’t one policy that covers all of their risks. Instructors can get bundled insurance coverage through a business owner’s plan (BOP), to provide comprehensive protection for the most likely losses. BOPs are $300 per year for dance instructors.
Although landlords may require dance studio owners to have building tenant insurance, they might not need to add any additional policies. They still have exposures in many areas such as employee and student injuries. Clients prefer to work with properly insured businesses. Dance instructors should have a mix of policies to protect them from the most serious risks. Dance studio insurance usually includes general liability, renters, property coverage, workers’ compensation, and general liability.
It doesn’t matter if you run a studio or teach dance, it is crucial to have insurance that covers your interests. The Hartford can help you choose the right coverage for your company with a simple, no-obligation application. You can get the coverage you want and the confidence you need in just a few minutes.
- 1 Dance Instructor & Dance Studio Insurance Prices
- 2 What Dance Studio Insurance Covers
- 3 What Dance Insurance Doesn’t Cover
- 4 Types of Dance Instructor Insurance and Dance Studio Insurance
- 5 Insurance providers for dance instructors
- 6 Bottom line
Dance Instructor & Dance Studio Insurance Prices
Instructors may need multiple policies. It is important to add up the cost. If studio owners and dance instructors bundle their coverage, they will get the best deal. BOPs are generally less expensive than purchasing separate liability and business property insurances. They start at about $400 per year.
Costs for insurance on dance studios vary from one state to the next. These are the typical starting costs of policies for policies that are based on a gym measuring 2,000 square feet with one clerk and $100,000 worth of fitness and business equipment.
Dance Instructor & Dance Studio Insurance costs & Deductibles
|Types of insurance||Average Premium Cost||Maximum Coverage||Deductible|
|BOP||400 to 3,500||$1 Million liability + $30,000 Property||$500|
|Professional Liability Policy||From $450 to $1.200||$1 Million||$500|
|Workers’ Compensation||From $500 to $3,000||$1 Million||$500|
|Commercial Auto Insurance||Vehicles from $3,840 to $4,4200||$250,000||$500|
There are many factors that can affect the cost of insurance for dance instructors, such as:
- The property and equipment value: Property insurance costs for dance classes taught at home are lower than those that require expensive equipment in a studio.
- Your experience: Your professional history in dance and any past claims will have an impact on the cost of your professional liability insurance.
- Workers: The higher the cost of workers’ compensation, the more employees you have.
Some insurers may not cover you if you offer a wide range of fitness services in your studio, or subcontract to other people who do. Don’t be discouraged: tell your agent what you need so that they can help you find the right policy.
Tip – Although bundling multiple policies can often provide the best dance studio insurance rates, it is a good idea to shop around first. To get quotes from small-business insurance companies, you can either work with a broker or browse the internet. Compare different policies premiums, limits, deductibles and other factors to ensure you get the best insurance for your needs at the lowest price.
What Dance Studio Insurance Covers
The liability insurance for dance studios covers injuries that result in bodily injury, property damage and financial loss. Professional liability may also be covered by insurance for dance instructors, such as teaching incorrectly a move or causing injury to another person.
Additional policies can be purchased to protect personal and business property, as well as buildings and employees from damage.
Dance studio insurance covers the following areas:
- Slip-and-fall accidents can cause injuries to clients and consumers.
- Clients who have items that are damaged or broken may suffer personal property damage
- Fire, theft, vandalism and other similar events can cause damage to the studio or its physical assets.
- Dance studio instructors are being sued for allegedly failing to provide adequate professional advice and/or a lack of service that resulted in financial or other harm to their clients.
- Employees who are injured while working in the studio may sustain injuries or lose their wages.
Business insurance requirements can be complicated, especially for exercise venues like dance studios. A dance studio may not require the same type of business insurance coverage. While some may choose to have more coverage for one-in-a lifetime accidents, others might feel that smaller claims are not worth the expense and opt for higher deductibles in order to reduce costs.
Tip Make sure you carefully review your insurance policies to ensure that you are fully covered in case of loss. Many dance instructors travel by their own vehicles to get to their studios and their students’ homes. They assume that their auto insurance will cover them. This is often not the case, as most personal auto policies exclude commercial driving.
What Dance Insurance Doesn’t Cover
Dance studio insurance is no exception to any insurance policy. There are many insurance companies that offer different policies, so make sure you check the exclusions before purchasing your policy. This will let you know what to expect from your coverage. Most claims that are denied are due to the studio owner not choosing the right coverage or policy. It saves you a lot of frustration and headaches by doing your research ahead of time.
There are some situations that insurance for dance studios doesn’t cover:
- Illegal actions, including false promises and guarantees: A student telling another that “You will be on Broadway within a year” is a guarantee.
- Privately labeled clothing and products: Selling supplements or dance clothes under your name requires a separate insurance policy. This policy must include a different risk category or a provider who can tailor it.
- Programs for minors may be restricted or excluded
- Other services and classes: Classes in martial arts, drama, yoga and crafts may not be included unless they are specifically added.
- Student injury in class: Students are usually exempted from injuries to their bodies during dance, unless they have medical payments coverage.
Tip You may need to add classes such as yoga, Pilates or fitness to your studio. Pricing for additional coverage can vary depending on how often these classes are offered and the risk level.
To ensure you receive the correct quote and that your claims are covered, be as detailed as possible when filling out applications. You can always call your insurance provider to verify what is covered.
Types of Dance Instructor Insurance and Dance Studio Insurance
Protecting dance instructors from lawsuits and claims is essential. General liability claims are most common. However, workers’ compensation and professional liability claims can quickly cause financial ruin to small businesses that don’t have the right insurance policies.
The Most Popular Types of Dance Studio Insurance
|Types of insurance||It covers|
|BOP||General liability and property damages claims|
|Professional Liability Policy||Claims arising out of an instructor’s professional teaching or advice|
|Workers’ Compensation Insurance||Studio employees are at risk of injury|
|Commercial Auto Insurance||Auto accidents can cause damage to vehicles and increase liability|
|Accident Coverage||Students who are injured during a performance may be eligible for a limited amount of health care, usually the deductible.|
Every dance instructor should have a BOP policy. The policy covers two types of important coverage: property and general liability. In the event that a non-employee is hurt at the studio, a general insurance policy is required for a dance instructor. A BOP covers the cost of repairing or replacing damaged buildings and equipment.
A BOP would pay for student injuries or medical bills if they slip in the changing area. If the student is sued, your legal fees would be covered by the policy.
Tip To understand the definition of an insured individual, it is a good idea to go through your liability insurance policy. Although employees are generally covered, most policies don’t provide insurance coverage for independent contractors. Your instructors who are not employees would have to prove that they have their own insurance.
Professional Liability Policy
If a client is injured, there’s a chance that dance instructors could be sued. A professional liability policy will cover claims if an instructor recommends to a student a diet that leads to the student being admitted to the hospital.
A professional liability policy is a policy that covers you if your student sues you. Your legal defense is best served by your own policy, even if you have extended coverage.
Professional liability can cover losses resulting from misleading statements made by instructors about the services they offer. Professional liability coverage is also required when an instructor is sued because he or she gave poor advice about nutrition or for giving dangerous instructions.
Workers’ Compensation Insurance
Many dance studios have multiple instructors, support staff such as cleaners and receptionists. Employers in the United States are required to purchase workers’ comp to cover injuries sustained on the job.
These rules vary from one state to the next. Texas does not require coverage. Other states do not require that you purchase a policy until there are several employees. A policy will cover workers who are injured and pay for medical expenses as well as disability benefits. Workers’ compensation insurance covers any injuries that result from a studio worker falling.
Commercial Property Insurance
Commercial Property Insurance is required for dance instructors who own the building where they teach. It covers their building and contents like furniture and equipment. Commercial property insurance covers the cost of replacing or repairing damaged items due to fire, theft or other natural disasters.
Many people think that their property is covered under their general liability coverage. This is especially true if they see “property liability.” Property damage liability covers only damage to other people’s properties. Commercial property insurance is required if you want to protect your furniture and other property in the event that it is damaged or lost.
Tip If your studio is rented, you should make sure that your policy covers not only yourself but also the owners. Talk to an agent if you have any questions about the policy.
Commercial Auto Insurance
Commercial auto insurance is important if you are required to travel to other locations to instruct students or transport them in company vehicles. You can also add coverage to cover damage to your vehicle when you drive for work.
Instructors who travel to distant locations to teach require commercial auto coverage in the event of an accident. It is a good idea to speak to your agent about any possible lawsuits that could result from an accident at your dance studio if your car contains any advertising. Your business could be sued by people simply because they recognize the name of your company and believe it is worth more than you.
Accident Insurance & Medical Payments
Unless you are added to the rider, accident insurance and medical payments are usually excluded from insurance for dance studios. This coverage covers medical expenses for someone who is injured in an accident that was not their fault.
A dancer who falls from a jump and twists her ankle is an example of a covered medical expenses. This is not a professional liability claim. It is also not a slip-and fall that would be covered under general liability. If the student cannot afford their medical deductible, they may have to sue the studio.
Insurance providers for dance instructors
Insurance is different for different types of dance studios. Although you might be able to get all your insurance needs covered by national companies, you may need to use a smaller insurance provider for special circumstances.
Top Dance Instructor Insurance Providers
|The Hartford||Local dance studios offering lessons and performing at events|
|CoverWallet||Mixed-use dance studios for all sizes, with dance, art and exercise classes|
|Hiscox||Dance instructors who are able to work in multiple studios and/or give private lessons.|
|Studios that offer extensive after-school programs and have contracts for children’s programming|
|Sadler Sports & Recreation Insurance||Owners of dance studios that also offer yoga and tumbling lessons|
The Hartford offers policies nationwide for small businesses. The Hartford is known for its innovation and affordable policies.
For dance studios that offer lessons at local fairs and schools, Hartford is the best choice. Comprehensive coverage is available for dance instructors, which includes medical payments for students who are injured while teaching.
CoverWallet works as an online broker to place business insurance for businesses across the country. To ensure that every small business owner has the right coverage at the right price, this provider works with over two dozen of the best-known insurance companies.
CoverWallet is the best option for a studio that offers many dance classes both in-studio and at other locations. They also have the facility to use for art, drama and exercise. CoverWallet can access many carriers so it can tailor policies to suit its clients.
Hiscox is a specialist in small business insurance and understands the risks that specific industries face, such as dance studios. Hiscox can offer customized coverage to clients in the dance studio sector because of this knowledge. Dance instructors and studio owners have the option to pay their annual premiums monthly, at no extra cost.
Hiscox is the best choice for dance instructors who want to protect their business interests or need to present certificates of insurance to studios that they contract with. Hiscox is the market leader in independent contractor insurance because they can price sole proprietor policies within a budget that suits all budgets.
All over the country
Nationwide offers personal insurance, including auto and home coverage. There are also extensive options for small-business insurance. Nationwide provides insurance for general liability and business interruption to help business owners protect their assets and property.
Nationwide is an excellent option for studio owners that offer child care programs at a primary studio, or at a third-party location such as a school. Nationwide offers comprehensive coverage that covers many risks associated with studio owners, including accidents on-site and off-site.
Sadler Sports & Recreation Insurance
Sadler Sport & Recreation Insurance provides insurance for higher-risk businesses that are more susceptible to injury. Bundled programs are offered that include general liability, business properties, and industry-specific inclusions like medical payments.
Sadler Sports & Recreation Insurance is the best choice for studios that offer more than dance lessons. They also need a policy that doesn’t exclude other programs such as yoga, tumbling or drama lessons. Sadler Sports & Recreation is a specialist provider and can create policies that are specifically tailored for dance, fitness, or sports operations.
Comprehensive insurance for dance instructors and studio owners is essential to ensure that they are protected against any loss. You’ll be covered if your employees get hurt, property gets damaged or you are sued.
professional and general liability policies cover claims that are based on the time an incident occurs and the date a claim is filed. What triggers coverage is the difference. An occurrence policy, on the other hand, requires that coverage be in effect when an incident occurs.
- 1 What is a Claims-made policy?
- 1.1 The Pros and Cons of Claims Made Liability Policies
- 1.2 Retroactive Dates for Claims-Made Policies
- 1.3 Extended reporting periods for claims-made coverage
- 1.4 How policy limits based on claims are implemented
- 1.5 Example of Commercial General Liability Coverage for Claims Made by Claims
- 1.6 What is Claims-made or Reported Coverage?
- 2 What is an Occurrence policy?
- 3 How to choose between Claims-made and Occurrence Liability insurance
- 4 Bottom line
What is a Claims-made policy?
A claims-made insurance policy provides coverage for liability protection to a company, but only if the claim was made after the policy was in effect. Retroactive coverage can be provided if the policy is still in force at the time of the claim or during its extended reporting period.
The Pros and Cons of Claims Made Liability Policies
|Coverage gaps are prevented||Not as often offered|
|Insurance provides peace of mind|
Retroactive Dates for Claims-Made Policies
A claims-made policy’s retroactive date means that coverage begins at a date before the policy was paid for and taken into effect. A policy could be issued to a company that has been without insurance for six consecutive months. The policy will be effective if they receive it on July 1, 2021. The policy can be claims-made with a retroactive six-month date. This would cover claims that were made after January 1. This would mean that the company would have removed the coverage gap for incidents that occurred before the policy was bought.
Extended reporting periods for claims-made coverage
Professional liability policies allow you to extend the period during which you can file an claim. This is as long as the claim occurred while the policy was in effect. An accountant might have an errors and mistakes policy until he retires. If someone files a claim for work done before retirement, he can add an extended reporting period (ERP), to his policy. This would allow him to keep the coverage in effect for up to five years.
How policy limits based on claims are implemented
The policy’s claims-made coverage is based on the principle that the coverage will last longer than the policy term. The insured receives additional protection by retroactively covering events that occurred before the insurance company established a relationship. Extended reporting periods are also available for claims that can be filed after the policy term has ended or is not renewed.
Example of Commercial General Liability Coverage for Claims Made by Claims
A professional liability policy covers an architect from January 1, 2020 through December 31, 2020. This policy is claims-made and has a longer reporting period. He takes a break from work to deal with a family matter and does not renew his policy. A March 2021 client who hired him to design a house discovered that the design had a problem that caused a threshold to collapse. Although the architect no longer holds a valid insurance policy, the extended reporting period and a claim filed three months after the policy expired cover him for the loss.
What is Claims-made or Reported Coverage?
A claims-made and reported policy is different from an extended reporting policy. The claim must be made and reported to the insurance company while the policyholder still has a valid liability policy. It can be difficult to file a claim after a policy period ends.
What is an Occurrence policy?
An occurrence policy permits the policyholder to file a claim for loss no matter when it is made, as long as the loss occurred during the policy’s term. Because it does not limit the time that a claim can be filed, an occurrence policy can cost more than a claims-made one. It can occur one month, one or 10 years after the loss.
The Pros and Cons of Occurrence Based Liability Policies
|Flexible claim-making period||More expensive|
|Some incidents are covered by indefinite protection||There is no prepolicy protection|
How the Occurrence Policy Limits Works
The general liability insurance limits apply only to the policy term. Any claim that was made after the expiration of the policy would be covered by the remaining coverage. Imagine that the prior policy had a $100,000 per-occurrence limit and an aggregate of $300,000. If you have not paid any claims during the policy term, the claim cannot exceed the per-occurrence limit. You would be out of luck if you have exhausted the aggregate.
Keep in mind that general liability insurance covers legal fees. Usually, defense costs are covered beyond the policy limits. You will need to verify this. They must be within acceptable limits or your per-occurrence value and aggregate value will get eaten by defense costs.
Example of Occurrence General Insurance Coverage
An occurrence type policy of general liability is available to a store owner. He has $100,000 per-occurrence limits and a $300,000. aggregate limit. His policy covers March 1, 2021, through February 28, 2021. A customer slips in his shop on January 20, 2021. A customer is taken to hospital with a fractured hip. There are complications after the surgery. The customer’s daughter files a claim for her on March 30, 2021. The claim does not apply to the current policy term, but to the prior term. The injury coverage will cover $100,000, plus any legal fees.
How to choose between Claims-made and Occurrence Liability insurance
It is important to know the differences between claims-made insurance and occurrence insurance so that you can choose the right policy for your company. The occurrence policy is more expensive, and therefore likely to be prohibitive if cost is a significant factor. The occurrence policy can be a good choice if you want coverage for any incident that occurred while your policy was in effect. A claims-made policy that has a retroactive period is a good option for newer businesses who might not have had general liability insurance.
It is crucial to know when and how your coverage will be effective before you buy general liability or professional liability insurance. There are many ways to get coverage before you purchase insurance, and also ways to protect yourself after your policy has ended. This will protect you financially from any claims that may arise even if there is no policy. Discuss your needs with your agent and determine which policy is right for you.
Each commercial general insurance policy contains defined limits. These limits are listed on the declarations page and in the policy. It is crucial to understand these limits in order to ensure that you have sufficient coverage in all areas and that you are properly insured against risks.
Here are the six limits of liability in a general liability policy.
- 1 1. 1.General Aggregate
- 2 2. 2.
- 3 3. Operation to complete the product
- 4 4. Personal & Advertising Injury
- 5 5. Premises Damage – You
- 6 6. 6.
- 7 Bottom line
1. 1.General Aggregate
The insurance policy’s general aggregate limit determines the maximum amount an insurer will pay to cover claims for a given time. The general aggregate limit is applicable to:
- Coverage A : Bodily Injury or Property Damage
- Coverage A: Advertising and personal injury
- Insurance C: Payments for medical conditions
A single large claim can be subject to the general aggregate limit, or a series smaller claims that add up to the limit. The insurance carrier will not pay any additional funds for claims if all claims within the policy term exceed the aggregate limit. Any resulting claims must be paid by the business.
This limit does NOT apply to claims arising out of products-completed operations hazards. These often have their own limit.
Example of General Aggregate
Imagine that your insurance policy has a $1 million limit for each occurrence and a $2,000,000 aggregate limit. Imagine you have three claims for $800,000. This is a total $2.4 million worth of claims. If your aggregate limit exceeds $2 million, then you are liable for $400,000 if the claimant wins their case.
An insurance company will only pay a certain amount for any given claim. This limit is called the per-occurrence cap and it is stated on your insurance policy’s declarations page. The per-occurrence limit often equals half the general aggregate limit.
If the aggregate limit is $2,000,000, then the per-occurrence limit could be as high as $1 million. Each insurance carrier and policy are different so make sure you understand the limits set by your policy. Sometimes, the per-occurrence limit may be equal to the aggregate limit. This limits the coverage that a policy will cover.
The claim amount will be reduced by the per-occurrence limit whenever there is a loss.
Example of Per Occurrence
Let’s say you have a policy that has a $1,000,000 per-occurrence limit and $2 million aggregate limit. The insurance company would pay $1 million for a $1.1 million claim. However, the business will likely be liable for any difference.
3. Operation to complete the product
Based on the liabilities arising from products or work completed, the product-completed operations limits determines how much will be paid. This coverage limit must be activated if the loss occurs outside of business operations. This coverage limit does not impact the general aggregate limit. It stands alone. It is possible to have claims that meet the general aggregate limit and a product-completed operation limit.
Example of Product-Completed Operations
Imagine a general contractor with a policy of general liability that covers $2 million in aggregate and $1 million for product-completed operation. The product-completed operation limit would pay $200,000 for injuries if a staircase the contractor constructed falls on the client. This claim would not affect the general aggregate limit of $2 million.
4. Personal & Advertising Injury
Personal and advertising injuries refer to things such as libel or defamation that you are accused of. This coverage does not have a general per-occurrence limit. The personal and advertising injury limits apply to each claimant, not to the entire occurrence. If more than one person is injured by an incident, they will each be eligible for compensation. It does however reduce the overall limit when a claim has been made.
Example of a Personal and Advertising Injury
Your policy covers general liability up to $2 million. There is also a $500,000. personal and advertising injury limits. You post something on Facebook about a competitor. The comment becomes viral. Your competitor loses customers due to the comment. The claim is false and your company is sued for $300,000. This claim is paid for by the personal and advertising injury limits, which pay to defend you. The aggregate limit drops by $300,000.
5. Premises Damage – You
Many business owners lease commercial space. They are required to have liability insurance. This coverage requirement often requires that you have at least $1 million of coverage per event. Each event counts towards the overall aggregate. This coverage requirement is not the same thing as the per-occurrence limit. However, these two can often be combined to make the total aggregate $1 million.
This coverage limit kicks in when damage is done. Fire damage is common, but vandalism, burst pipes and other perils that cause damage to the leased property are also covered.
Premises Damage – Rented to you Example
Let’s say you have a policy that covers $2 million in general aggregate and $1,000,000 for damage to your rental properties. A small fire breaks out when the microwave in the breakroom is set on fire. The fire department arrives to put out the flames.
Your contents are covered under a business property insurance policy. However, damage to walls, floors, and ceilings are covered by your coverage for damage to premises rented by you. The annual aggregate amount will be reduced to $1.7million if the amount exceeds $300,000.
This insurance is considered no fault and provides first aid and medical bills for anyone who sustains bodily injury on-premises. It covers reasonable expenses, subject to the policy’s medical expenses limit. The claim amount reduces the aggregate limit.
Example of Medical Expense
Let’s say you have a $2 million aggregate limit and a $1 million medical expense limit. A senior man falls and breaks his hip in your establishment. Your insurance will cover the cost of transportation and any medical bills that result from the fall, up to the policy limit of $1 million. The claim amount also reduces the aggregate limit.
You can make sure you are adequately protected against different risks by understanding when general insurance is required and the policy limits. To ensure that you have the correct amount of coverage, you should consult your agent. You can also increase coverage where you feel you are most exposed. Your business and you may be held responsible if a claim exceeds these limits.
Insurance for staff agencies is a collection of policies that agency owners can buy to protect their assets. The policy covers the risks that many employment agencies are exposed to and pays for the associated costs. General liability is required by most agencies to protect third-party injuries or property damage. It costs between $400 and $1,000 each year.
Insurance costs for staffing agencies can be very different so it is a good idea to compare offers from multiple carriers. CoverWallet makes it easier to obtain quotes from multiple insurance companies. It takes less than five minutes for most owners to complete the application.
- 1 How staffing insurance works
- 2 Insurance for Staffing Agencies
- 3 Different types of insurance for staffing companies
- 4 Additional Insurance Policies for Staffing Agency Insurance
- 5 Insurance providers for staffing agencies
- 6 Tips for Obtaining Staffing Agency Insurance
- 7 Bottom line
How staffing insurance works
Based on the business they operate, staffing agencies are exposed to different risks. Each agency owner must choose the right staffing insurance policy for his or her business. While most states require agencies to have workers’ compensation insurance for their employees, temp staffing agencies must also be covered for workers placed with clients.
General liability and commercial property insurance are required for all types of staffing agencies. Staffing agency owners are often able to get coverages in a Business Owner’s Policy (BOP) at a fraction of the cost of purchasing separate policies. This is because they have fewer risks for third-party suits and expensive property damage. BOPs for staffing agencies usually cost between $500 and $1,500 annually.
Insurance for Staffing Agencies
Insurance costs for staffing agencies depend on how many policies are purchased and what coverage is selected. The industries they work in are another important consideration. Tempo agencies that provide workers in construction or manufacturing will likely be more expensive than those that place clerical workers.
Insurance costs & deductibles for staffing agencies based on insurance type
|Types of insurance||Annual Premium||Maximum Coverage||The Average Deductible|
|General Liability Insurance||400 to 1,000||$1 Million per occurrence/ $2,000,000 aggregate||*From $0 to $1,000|
|BOP||From $500 to $1,500||Liability: $1 million / $2 million
Property Variables based on property values
|From $200 to $500|
|Professional Liability Insurance||$700 to $2,500||$1 Million per occurrence/ $2,000,000 aggregate||*From $0 to $1,000|
|Workers’ Compensation||From $200 to $2,000||Variables based on the industry and the insurance provider||Variables based on state law|
General liability insurance doesn’t usually have a deductible. However, business owners can request one to lower their premiums.
Insurers consider other factors when calculating the cost of staffing agency insurance. Other factors such as business characteristics and policy selection are also important.
Other factors that insurers take into consideration when setting premiums include:
- Deductibles – A deductible is a sum that a policyholder is responsible to pay for in the event of a claim. A higher deductible will usually result in a lower premium.
- Claims history Multiple claims can make a company look risky to an insurance company, so they tend to increase their costs accordingly.
- Revenue:Insurers charge higher premieres to staff agencies with higher revenues because they may be more likely to face expensive lawsuits.
- Employees: A higher staff number means more employee theft and injury, as well as increased opportunities for bad client interactions. Larger firms are more likely to have higher premiums on workers’ compensation, general liability, or commercial crime.
Workers’ Compensation Insurance for Staffing Companies
Nearly all staffing agencies require workers’ compensation insurance to protect their employees. Except in Texas, workers’ compensation insurance is mandatory to cover the medical bills and lost wages of injured employees. Temporary staffing agencies need to provide coverage for workers who are employed in other companies, which increases their staffing insurance costs.
Workers’ compensation insurance costs for staffing companies are determined based on the job risk of each employee, its payroll and claims history. Employers often pay higher rates for workers’ compensation when employees are in high-risk occupations. Workers’ compensation costs for residential builders can range from $2.82 to $35.95 for $100 worth of payroll, while those for clerical workers are often 8 cents or $1.48 per $100 worth of payroll.
Tip – Safety training is a great way to keep your employees safe, reduce worker’s comp claims, and lower the cost of staffing insurance. Although they may hire workers from other companies, these temps are still staffing agency employees. The agency owner is responsible therefore for their safety.
Different types of insurance for staffing companies
Staffing agencies are exposed to risks. They need staffing insurance in order to protect their assets against lawsuits and other accidents. General liability, workers’ compensation, and commercial property insurance cover the most common risks to staffing agencies. To cover additional risks such as employee crime and negligence, agencies might need other staffing policies.
The Most Popular Types of Staffing Insurance Policies
|Types of insurance||It covers|
|General Liability Insurance||Nonemployees have made allegations of bodily injury, property damage and reputational damage|
|Commercial Property Insurance||Repair and replacement costs of business-owned property including real estate, equipment and fixtures|
|Workers’ Compensation Insurance||Employees who are injured or suffer from work-related illness and injury may lose their wages and have to pay medical bills.|
|Commercial Crime Insurance||Criminal activities can result in the loss of money, securities, or other property.|
|Professional Liability Insurance||Client claims of professional negligence can result in legal fees|
General Liability Insurance
General Liability Insurance covers staffing agencies by covering third-party claims for property damage, injury to the body, and advertising injuries such as defamation. General liability usually covers your legal fees and the medical bills of the injured party if your company is accused.
Here are some examples of general liability claims:
- Client accuses you of damaging their copier while on temporary assignment
- An electrician is accidentally tripped by a delivery driver in your reception area
- Your social media manager sent a tweet that was defamatory to a competitor and he sued.
These claims are typically covered by standard general liability policies, regardless of whether you or your employees cause them. Because temporary staffing agencies employ agency workers, their general liability coverage also covers workers placed in other businesses.
Commercial Property Insurance
Insurance for commercial property covers damage to agency property that is caused by fire, theft or vandalism. Your policy covers your agency’s office space, equipment, furniture and fixtures up until the coverage limit. This excludes your deductible. Agent owners can choose to insure only their office contents with commercial property insurance.
Staffing agencies have very low property exposures. This combined with the low risk of general liability lawsuits means that most agencies are eligible for a BOP.
Workers’ Compensation Insurance
Most states require workers’ compensation insurance to be purchased by staffing companies in order to pay for employees’ medical bills and lost earnings if they are injured or suffer from work-related illness. Business owners may be required to buy coverage from the state fund or purchase it through their state laws when they hire employees. Some states require coverage even for one employee.
Only staffing agencies that hire permanent workers need to have workers’ compensation insurance. Temporary staffing agencies require coverage for both their in-house workers and the workers they place with clients.
Because agency-paid temporary workers are not independent contractors, they don’t meet the IRS requirements. They are paid per hour and cannot manage their work situations.
Commercial Crime Insurance
Commercial Crime Insurance Covers financial and property loss due to illegal acts, including forgery and computer fraud. Temporary staffing agencies require endorsements for clients’ items, as most policies only cover the property and funds of the policyholder.
These are some situations that could trigger insurance for crime insurance:
- An accused temporary worker was charged with stealing inventory from a retailer client
- Your bookkeeper committing check fraud
- Theft of money from your agency by a burglar
Most commercial property policies do not cover theft of money or securities. They also don’t cover dishonest employees. This makes commercial crime insurance a valuable policy for any company, but particularly for temporary staffing agencies.
Professional Liability Insurance
The errors & omissions insurance also known as professional liability insurance, protects your staffing agency from lawsuits arising out of your professional services. Professional liability insurance covers your legal costs if you are accused by a client of sending an unqualified candidate.
The following are some other examples of professional liability insurance that may be covered:
- Mistakes: Sending applicants to the wrong interview could cost them a job
- Omissions Failure to conduct background checks
- False statements: Inflating a worker’s qualifications in order to get them a job
For staffing agencies, some insurers offer both professional and general liability coverage under one policy. Although this may seem like a cost-saving strategy, owners should verify that the coverage is adequate.
Additional Insurance Policies for Staffing Agency Insurance
These are the five insurance policies that staffing agencies require. Many owners work in supply or operations that require additional insurance.
Cyber liability insurance, commercial auto coverage, and computer and media coverage are just a few of the other types of staffing insurance policies that agency owners might need.
Cyber Liability Insurance
Cyber liability insurance covers the costs of data breaches and cyberattacks such as client notification and credit monitoring. Many agencies are exposed to cyber liability, even though any employee could accidentally reply to a phishing message. The greatest risk may be for information technology staffing agencies.
Commercial Auto Insurance
Staffing agencies that have business-owned vehicles will likely require commercial automobile insurance. While most states require that business owners have at least the minimum level of liability coverage in order to protect themselves against injuries and damage caused by their employees, owners can purchase coverage that covers them for any injuries and damages. For vehicles they rent, borrow or hire for business, they can get both owned and hired auto liability insurance.
Computers & Media Coverage
Computers and Media coverage (also known as electronic data processing coverage) helps to pay for the restoration or replacement of digital data lost by your agency’s network or computers due to certain perils such as theft, vandalism and malware. Some policies cover hardware and software repairs. These items are not covered by commercial property policies.
Insurance providers for staffing agencies
It can be challenging to get insurance for staffing agencies, especially if you have temporary workers and need insurance in different locations. Agency owners often have to look for specialty insurance companies or find brokers that have access to multiple carriers in order to get coverage.
Top Staffing Agency Insurance Providers
|CoverWallet||Owners of staffing agencies who wish to compare quotes before purchasing insurance|
|Bankers Insurance||Agent owners who are looking for a combination of professional and general liability policies|
|Philadelphia Insurance Companies||Employer practices liability insurance (EPLI), is required for staffing agencies that have employees.|
|Intego||Owners of staffing agencies who wish to reduce the stress associated with workers’ compensation audits|
|World Wide Specialty Programs||Agents who are looking for premium discounts or free legal advices|
The following are some of the most reputable insurance providers for staffing firms:
CoverWallet can provide coverage to employment placement agencies and small business insurance. To help small businesses find the right coverage, the company partners with top-rated insurance carriers such as CNA, Chubb and Liberty Mutual.
When they are looking for staffing insurance, agency owners should apply with CoverWallet to get staffing coverage. CoverWallet allows you to easily get multiple quotes from quality insurers with one application. This transmits your business information directly to all carriers. It takes less than five minutes and can often return multiple quotes.
Bankers Insurance can provide temporary staffing agency coverage. Bankers Insurance agents are often able to negotiate lower prices for clients, in addition to providing quotes from multiple carriers.
Bankers Insurance offers a unique option that allows you to combine both general and professional coverage into one policy. Bankers Insurance is ideal for agencies that want to manage one insurer, one premium, and one policy for both of these essential coverages.
Philadelphia Insurance Companies
Philadelphia Insurance Companies is a national financial carrier that has been creating insurance products for niche markets since more than 55 years. They have developed a flexible package to support temporary staffing agencies after years of experience working with difficult-to-insure companies.
The PHLY temporary staffing agency insurance program includes high general liability limits, up to $3 million coverage for the term of the policy. PHLY is a good choice for business owners looking to cover employment practices liability. The policy covers workers who are placed with clients. However, the insured can choose to use their own counsel and/or the carrier’s counsel.
AP Intego offers a full range of business insurance policies. However, their specialty is workers’ compensation insurance. You can pay your workers’ compensation premium as you go. This plan is based on your actual monthly salary and not an estimate for the entire year.
AP Intego’s payment program makes it an ideal company for staffing agencies that want to pay monthly premiums accurately. This will ensure they don’t have unexpected bills when it comes to their workers compensation audit. Your payroll service coordinates with the company’s technology to automatically withdraw premium payments and determine the correct premium.
World Wide Specialty Programs
World Wide Specialty Programs, an insurance company that is solely focused on the staffing industry, can provide customized solutions for all types and sizes of staffing agencies. Zurich, an industry leader with over 140 years of experience in creating insurance programs for niche markets, provides company coverage.
Agent owners may consider World Wide Specialty Programs because of the company’s experience. But, a bigger benefit is the possibility for discounts through partner organizations. American Staffing Association members can receive premium discounts, and all World Wide EPLI policyholders get a free consultation with Jackson Lewis, LLP.
Tips for Obtaining Staffing Agency Insurance
Staffing agency insurance is vital for your business’ success. However, it’s not as easy as choosing policies and paying the premium. You can take steps to ensure you are getting quality coverage at an affordable price.
An agent who knows the industry is a good choice
Agents who are familiar with the staffing industry should be able to assist agency owners. Although staffing agencies are generally exposed to a set of unique risks, some may also be subject to additional risks due to their particular operations. A staffing agency agent who has industry experience will be able to identify these risks and recommend the right staffing insurance for your business.
Compare Quotes from Multiple Carriers
Insurance is the second-highest overhead cost for staffing agencies after payroll. Agency owners need to be able to find affordable coverage while still protecting their business. The best way to do this is to compare multiple quotes. An insurance broker can not only help you find a good rate, but it will also help you to navigate the differences among your options.
Correctly Classify Your Staffing Agency
Many people use the terms employment agency and staffing agency interchangeably. Employment agencies place permanent workers for insurance. This distinction is critical to make when you apply for insurance.
Staffing agencies can be of any size and offer services for almost all industries. It is not easy to find the right insurance provider and funding for staffing agencies. To ensure that their agency has the right coverage, they must identify their risks and work with professionals who are familiar with the industry. An insurance agent who is knowledgeable and helpful can help owners find the best practices and create safety programs, which will reduce their insurance costs.