Dance of Asian America
Photo by James Wiseman, reefpix.org

Feb
24
2016

Overview

Insurance is a practical expense for all businesses and facilities, and it's especially important for all dance activities.  If someone gets hurt while dancing, insurance coverage can provide monetary relief for an injured participant who needs medical attention.  A responsible group leader or event coordinator will, at a minimum, have "medical accident" coverage for this type of occurrence.  This type of coverage is included in all ASDA memberships at the rate of $2 per person per year (or $.20 per person per day for special events).  See Membership Benefits for details.

Most venues require dance clubs and special events to carry 1-2 million dollars in general liability insurance.  This type of policy provides basic coverage for your business. 

For General Liability coverage (clubs, organizations, and groups that meet regularly)

For Special Event coverage (one-time or special events)

For Directors & Officers coverage (non-profit organizations only)

Types of Coverage

Medical Accident Insurance
Insurance than can be written to cover death, dismemberment, loss of sight, loss of income, medical and dental expenses caused by accidental injury.  Policies can be tailored to cover all members, participants and volunteers of a group or organization while they take part in activities they sanction.  This may be written as a “worldwide” coverage, free of geographical restrictions if international operations are noted on applications for coverage.  Individual business people such as instructors and choreographers might also be eligible for this coverage.
This coverage helps protect participants against loss due to injuries.  Recommended as standard coverage for any club or event.  Members, guests, participants, and volunteers should be included in coverage.  A minimum limit of $100,000 per accident is recommended.

General Liability and Event
A form of insurance sold to organizations, groups and businesses to indemnify them for third party liability claims due to negligence. Coverages can include premises and operations liability for on and offsite incidents and products liability claims for products that injure third parties.  These policies can be written on an annual basis or can be tailored for specific, “special events” taking place for one day or more.  
This coverage helps protect organizations and event coordinators against loss due to negligence.  Recommended as standard coverage for any club or event.  

Directors and Officers Liability Insurance
Protects officers and directors of an organization against damages from claims resulting from negligent or wrongful acts in the course of their duties.  Can also cover the organization (and even the officers and directors in some cases) for expenses incurred in defending lawsuits arising from alleged wrongful acts of officers or directors. “Employment Practices Liability Insurance” can also be made available for organizations with employees to cover legal costs to defend claims involving sexual harassment, wrongful termination and discrimination including legal liability for such acts.
This coverage helps protect Directors and Officers against claims brought directly against them for their leadership role in the organization.  Recommended for corporations and non-profit organizations.

Workers Compensation Insurance
Protection which provides benefits to employees for any injury or contracted disease arising out of and in the course of employment. Laws which require such protection for workers vary by state and can prescribe the length and amount of such benefits provided. Requirements vary by state.

Property Insurance
"First-party" insurance of real and personal property (such as a building) against physical loss or damage.

Equipment Floater Insurance
A form of inland marine insurance, often written on an "all-risk" basis, covering various kinds of equipment owned by an organization, business or individual that, generally, can be transported from place to place.  Examples of items that could be insured include sound equipment, costumes, computers or modular dance floors.

Privacy and Internet Security Coverage
Coverage that may be available for electronic and non-electronic security and data breach events, including physical theft or breaches of privacy.

Hired and Non-Owned Auto Liability Coverage
Hired auto liability coverage is designed to pay for damages to a third party, on behalf of an insured business, group or organization, if a prescribed individual, acting on their behalf, were to cause an accident or an injury to someone while they were driving a rented car or "non-owned" vehicle.  On the other hand, this coverage can also apply if the individual were to be using their own vehicle while acting on the behalf of the insured business, group or organization.

Crime Coverages
Insurance that may be available to protect against losses of money, securities and property by such causes of loss as employee dishonesty, forgery, theft, burglary, robbery, kidnap, extortion and fraud.  

Key Terms

Additional Insured
An entity, other than the named insured, protected by the terms of the policy for a specific amount of time. This is typically a specified individual or business such as a venue, hotel or vendor.

Additional Named Insured
A party, other than the first named insured, that has been shown as an insured in the policy Declarations or in an addendum to the policy Declarations or by endorsement once the policy has been issued. This party has the status of named insured.

Certificate of Insurance
A short-form documentation of an insurance policy which venues, hotels and vendors very often request of groups, organizations and instructors before allowing them to use their facility or services.

Policy Structure

  • Declarations – includes name of the insured, the address, the amount of coverage provided, a description of what is to be covered, and the cost of the policy.
  • Insuring Agreements – general statement about what is to be covered or, in other words, the losses for which the insured will be indemnified.  Also includes description of what is covered and the perils against which it is insured.
  • Conditions – sets the ground rules for the policy.  Describes the responsibilities and obligations of both the insurance company and the insured.
  • Exclusions – describes the losses for which the insured is not covered.  If an excluded loss occurs, the insured will not be indemnified.
  • Definitions – clarifies the meanings of certain terms in the policy.

Leave Comments

‚Äč