Why Get Insurance?
If someone injures them self while you are teaching them, they may sue you and the studio that you work for. It is important that you protect yourself because accidents can happen. Depending on how injured that person may be, it could leave you financially devastated. Don’t take chances, it’s not worth it.
Be a responsible instructor by educating yourself, and getting insurance. For as little as $450 per year you can be completely covered for all your classes including all levels of Pole Fitness. Remember, Provincial and National Fitness Organizations such as CanfitPro do not cover Pole Fitness!
Once you have registered to be a member of the CPFA you will have access to this insurance. Don’t take chances with your future!
Coverage for Contractors
I’ve been fielding lots of questions from studio operators regarding coverage for outside contractors so I figured it was best to generate some more original content on the matter.
First, some background information regarding Employees vs Contractors.
An employee is governed by a ‘master /servant’ relationship. They come and go at specific times, their job is clearly outlined, they are paid by the hour, payroll taxes are deducted at payment, and they are directly managed by the firm.
A contractor on the other hand comes and goes as they please, will bring their own tools/equipment, is paid a flat rate and generally conducts their affairs according to their own liking. Payroll taxes are not deducted and left to the contractor to declare to the Taxman.
Many studios will use a mix of Employees and Contractors for teaching classes. Many instructors prefer to be classified as Contractors for tax purposes.
The Commercial General Liability policy will cover people working for the studio, both contractors and employees. A prudent studio operator should look to divest some of this risk by making sure independent contractors have their own coverage. Furthermore, insurance underwriters will frequently ask/demand that Contractors supply their own insurance. This is a standard ‘box ticking’ exercise insurance companies go through and while it is a sound risk management practice, it doesn’t always work well for Dance Studios.
I will use comparable examples of Construction and Trades to illustrate.
General Contractors often employ sub-trades / sub-contractors for more specialized aspects of construction; like plumbing, roofing, electrical, etc. This is usually done on a classic Contractor relationship. The plumber is paid a set amount for his services and the General Contractor provides little supervision or instruction for the plumber. The plumber will come and go as they please and will supply their own tools and equipment. Even through the General Contractors policy will cover the plumber, the General Contractor should be asking the plumber to provide their own insurance. The General Contractor does not manage or supervise the subtrades and it is not advisable to assume responsibility for risk that you can’t control.
For Dance Studios, teachers are often listed as Contractors for tax purposes, but I don’t know if they really fit the definition of a Contractor. They are given a schedule and told what to teach. They rarely supply their own equipment. So while the Taxman may believe they are contractors, I think they more accurately fit the Employee description. Furthermore, few teachers are generating enough revenue from there operations to rationalize a $500 expense for their own policy. So while requiring teachers to carry their own liability is sound risk management, it isn’t always feasible.
In summary, the General Liability policy will cover people working for the studio. While it’s advisable that contractors provide their own liability, it isn’t always feasible and not required.
You need insurance – Contact Phil Webb
For studio and individual instructor coverage
Metrix Professional Insurance Brokers Inc.
#1500-1166 Alberni Street, Vancouver, BC, V6E 3Z3
Direct 604 629 2678 | Cell 778 968 2710 | Phone 604 683 5583| Fax 604 683 8032
firstname.lastname@example.org | www.mpib.com