Ballroom Insurance Policy Information
Ballroom Insurance. Ballrooms - also referred to as dancing halls - were traditionally, of course, used to host balls. In the modern world, ballrooms can still serve this purpose.
They are more likely, however, to host more modern gatherings such as proms, weddings, smaller classical concerts, and even professional conferences. Despite the fact that ballrooms now fulfill a wider variety of functions, they retain the formal and majestic air people expect from them, and will have floors specifically designed to facilitate dancing.
If you own and operate a ballroom, or are considering taking this step, you will want your venue to become one where large gatherings of people can enjoy formal gatherings.
To maintain and expand such a business, it is crucial to consider the multitude of risks a ballroom is vulnerable to, and to implement measures to mitigate the damage such perils could lead to.
Investing in a comprehensive ballroom insurance plan is an important part of any risk management plan, but what types of coverage might a dancehall need to carry? Discover more in this brief guide.
Ballroom insurance protects your dancehall from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked ballroom insurance questions:
- What Is Ballroom Insurance?
- How Much Does Ballrooms Insurance Cost?
- Why Do Ballrooms Need Insurance?
- What Type Of Insurance Do Ballrooms Need?
- What Does Ballroom Insurance Cover & Pay For?
What Is Ballroom Insurance?
Ballroom dancing involves a large number of people moving in close proximity to each other, which can increase the risk of accidents. Dancers may trip over one another, collide with each other, or even suffer from overexertion or injuries due to the physical demands of the dance.
In addition, ballroom dancing events often take place in rented spaces, which can increase the risk of damage to the property. For these reasons, ballroom dance studios, organizations, and events need insurance to protect themselves from financial losses due to accidents or damages.
Insurance can help cover the costs of medical expenses, legal fees, and repairs in the event of an accident or damage. This can provide peace of mind for organizers, dancers, and attendees, allowing them to focus on enjoying the dance without worrying about potential financial losses.
How Much Does Ballroom Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small ballrooms ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Ballrooms Need Insurance?
Like any other business, ballrooms are vulnerable by a wide range of perils. Some of the risks a ballroom can be confronted with are nearly universal in nature, while others are more specific to this particular field of commerce.
Although you can manage smaller mishaps on your own, some events are so catastrophic that they could jeopardize the future of the ballroom. By carrying outstanding insurance, you no longer face these risks alone - but instead share them with your insurance company.
Your ballroom could be impacted, for example, by acts of nature as varied as earthquakes, wildfires, serious floods, and storms. The resulting damage to your building as well as other physical assets such as antique furniture or sound systems could itself be sufficient to drive you to bankruptcy, but you can further expect costly business interruptions. Theft and vandalism are two additional examples of common perils that may cause extensive damage.
Besides property damage and loss, liability is the other major risk category. An employee may become injured over the course of their job, or a guest might sustain injuries while present on your premises. Even poor marketing decisions have the potential to lead to drawn-out litigation.
Risk and uncertainty may be an integral part of owning a business, but by investing in comprehensive ballroom insurance, a dancehall will be able to cope with any challenge much more easily.
What Type Of Insurance Do Ballrooms Need?
The jurisdiction within which your ballroom is located, the nature of the building itself, the types of services you offer, the type of equipment you rely on, and your number of employees are just some of the factors that influence the precise nature of your insurance needs.
Because the process of acquiring appropriate insurance is complex and challenging, it is vital to consult a skilled commercial insurance agent. While every dancehall is unique, you will likely require the following forms of ballroom insurance coverage:
- Commercial Property - In the event of perils such as acts of nature, theft, vandalism, and accidental fires, commercial property insurance provides coverage for your physical building. Its contents, including lighting, sound systems, furniture, and computers, are also covered under these policies. Note that niche insurance companies may better serve you if you are seeking property insurance for a historic building.
- General Liability - This type of insurance will protect you from the financial consequences of third party bodily injury or property damage claims, by covering your attorney fees and settlement costs. Claims of copyright infringement also fall under general liability insurance.
- Workers Compensation - This form of ballroom insurance coverage has the dual purpose of protecting your company and your employees; if an employee is injured in the workplace, it covers their medical bills as well as any lost income. Carrying workers' comp insurance further prevents employees from filing lawsuits in the event that they are injured at work.
While the types of ballroom insurance coverage examine here protect dancehalls from many of the risks they can be exposed to, you may also require additional forms of coverage.
Commercial auto insurance and cyber insurance - which guards you from financial losses resulting from attacks on your electronic data - are just two examples. Only a commercial insurance broker who understand your unique business can offer you individualized guidance.
Dancehall's And Ballroom's Risks & Exposures
Premises liability exposure can be significant due to the large numbers of visitors on premises and the potential for slips, trips, and falls while dancing. Public and life safety code compliance is very important. Floor coverings must be in excellent condition.
Adequate lighting, marked exits and egress are mandatory. Steps must have handrails, be well-lit, marked, and in good repair. Parking areas should be maintained free of snow and ice.
Criminal background checks should be conducted for any employee supervising children or youth during dancing classes. The ballroom may have personal injury exposures from discrimination, defamation of character, wrongful eviction, false arrest, or unlawful detention.
Liquor liability exposure can be extensive if employees are not properly trained to recognize the effects of excessive alcohol consumption. Procedures must be in place for checking IDs and refusing to serve underage or intoxicates individuals. There should be a "cutoff" time well before the end of the activity to prevent visitors from excessive alcohol consumption prior to driving home.
Products liability exposure can be high if there is a restaurant on premises due to the potential for food poisoning from inadequate food storage, handling, and cooking procedures, or from foreign objects in food.
Workers compensation exposure is generally limited. Instructors may be hit or kicked by inexperienced students or suffer strains as they intervene to protect students from falling during dance classes. If instructors also entertain, they may sustain dance-related injuries such as sprains, slips, or falls.
Maintenance operations may result in lung, eye, or skin irritations from exposure to fumes during the floor refinishing process. Food service employees are exposed to possible burns and kitchen related cuts, slips, and falls.
Employees may be required to work at heights to change lights or to work on overhead equipment. Customers may become unruly and harm employees.
Property exposures are moderate due to electrical wiring for lighting and sound systems and the flammable coatings used to maintain the floors used for dancing. Electrical wiring must be up to code and adequate for operations.
Regular refinishing of the floor is required to maintain a good dancing surface. The refinishing process creates dust and fumes and involves the use of flammable liquids which should be stored away from ignition sources. There should be adequate ventilation during the refinishing operation to prevent the buildup of dust and flammable vapors. If cooking is done on premises, all cooking equipment must be properly controlled.
Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees handling money. Employees who are in charge of ordering must not be the same who handle disbursements and billings. If there is cash admission or if a restaurant is present, all money should be counted by two employees before moving to a central secured area.
Regular deposits should be made and the number of cashiers should be limited. When tournaments, exhibitions, or other sponsored events occur, cash can increase considerably requiring extra security.
Inland marine exposure is generally limited to valuable papers and records for contracts with students and instructors. There may be accounts receivable if the ballroom bills students for classes, computer coverage for computerized sound and lighting equipment, or a theatrical property floater if a dance group performs offsite.
If the ballroom assumes responsibility for personal property of guests while on the premises, bailees customers coverage should also be considered.
Business auto exposure is normally limited to hired non-owned for employees running errands. If patrons are transported or valet or limo services are provided, all drivers must be properly licensed and have acceptable MVRs. All vehicles must be maintained on an ongoing basis and service documented.
What Does Ballroom Insurance Cover & Pay For?
Ballrooms can face lawsuits for a variety of reasons. Some common reasons include:
- Slip and fall accidents: Ballrooms may be held liable if a guest slips and falls on a wet floor or uneven surface.
- Food poisoning: If guests become sick after consuming food or beverages served at the ballroom, they may sue for damages.
- Security issues: If a guest is injured due to inadequate security or due to the actions of a violent or intoxicated person on the premises, the ballroom may be held liable.
- Property damage: If a guest's property is damaged while on the ballroom's premises, they may seek compensation from the ballroom.
Insurance can help protect ballrooms from the financial impact of these lawsuits. A ballroom may purchase various types of insurance coverage, including:
General liability insurance: This type of insurance can cover a ballroom's legal expenses and settlement costs if a guest is injured or their property is damaged while on the premises.
Property insurance: This type of insurance can cover damage to a ballroom's building, equipment, and other property.
Liquor liability insurance: This type of insurance can cover a ballroom's legal expenses and settlement costs if a guest is injured or causes injury to others as a result of alcohol consumption on the premises.
Workers' compensation insurance: This type of insurance can cover medical expenses and lost wages for employees who are injured on the job.
For example, if a guest slips and falls on a wet floor in a ballroom, they may sue for damages. The ballroom's general liability insurance may help pay for the legal expenses and any settlement or judgment costs related to the lawsuit. Similarly, if a guest becomes ill after eating food served at a ballroom, the ballroom's general liability insurance or product liability insurance may help cover the legal expenses and settlement costs.
In the case of security issues, if a guest is injured due to inadequate security, the ballroom's general liability insurance may help pay for the legal expenses and any settlement or judgment costs related to the lawsuit. However, if the injury was caused by the actions of an employee, the ballroom's workers' compensation insurance may also come into play.
In summary, insurance can help protect ballrooms from the financial impact of various types of lawsuits, including slip and fall accidents, food poisoning, security issues, and property damage. The specific types of insurance coverage.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7911 Dance Studios and Schools
- NAICS CODE: 713990 All Other Amusement and Recreation Industries
- Suggested Workers Compensation Code(s): 9084 Bar, Discotheque, Lounge, Nightclub or Tavern
7911: Dance Studios and Schools
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 791: Dance Studios, Schools, And Halls
7911 Dance Studios and Schools: Establishments primarily engaged in operating dance studios, schools, and public dance halls or ballrooms. Establishments primarily engaged in renting facilities used as dance halls or ballrooms are classified in Real Estate, Industry 6512.
- Ballroom operation
- Children's dancing schools
- Dance hall operation
- Dance instructors
- Dance studios and schools
- Discotheques, except those serving alcoholic beverages
- Professional dancing schools
Ballroom Insurance - The Bottom Line
To learn more about the types of ballroom insurance policies you'll need and how much coverage will cost, consult with a reputable broker that is experienced in business insurance.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.