Looking for business & home property insurance for home-based training studio
Can anyone offer information about getting insurance protection for personal trainers operating from a home-studio? State Farm is telling me I'll be dropped if I operate from my basement studio - EVEN IF I have separate business insurance (pro and gen liability). Who covers both?
Here is a link for CPT Insurance:
As far as your home owners ins. company...S.F., I would follow their advice.
That is too bad. Are there other companies in your area where you could visit for a consultation? I would check them all out. You may also want to check out:
Good luck to you.
Your business liability is a completely separate entity from the liability that is covered under your homeowners insurance. Like you, I have a personal training studio located in my house. From an insurance perspective, the increase in "foot traffic " i.e. more people coming to your home due to your business presents a greater liability risk than would be normally expected at a residence. The simple fact that your business, personal training, results in more people coming to your house increases the liability risk for the insurer. If you had a different business, such as a computer repair business, then the risk for the insurer would not as great because the "foot traffic" would be less.The bottom line is, that the increased risk of liability is not related to the type of business,i.e. personal training (the professional and general liability insurance covers that), but rather it is directly related to the increased risk associated with increased "foot traffic". It is due to this increased risk that State Farm would or did cancel your homeowners insurance. If you are going to continue personal training in your home studio, I would suggest to contact your insurance broker to find an insurance company willing to underwrite a policy to fit your needs. Word of caution, be prepare for a drastic increase in your insurance premium, but don't risk being uninsured.
Really, no one is willing to do it because it's simply too risky. Think of home many things can happen to a home and how many ways it can come about. Then think of how many things can go wrong with a business. So to try to insure all of those things with essentially one policy, it would be the most expensive policy you've ever seen, and probably the most extensive set of documents you'll ever deal with.
Overall, you're better off training at other locations (such as public parks) and designating part of your home as an office area. It will allow for all the tax benefits without nearly as much liability, but PT insurance is still necessary.