I teach piano lessons in my living room. A 10-year-old student threw a tantrum and smashed a heavy glass vase onto my Steinway, damaging the lid and the vase. Then the student slipped on the water from the vase and broke his wrist. The parents sued me. My homeowners insurance denied everything: “Business Activity in the home.”
Key Takeaways
- Business Activity Exclusion: Homeowners insurance excludes liability and property damage related to business conducted at home. Teaching paid lessons is a business.
- You Need a CGL Endorsement: You must add “Permitted Incidental Occupancies” or a specific “Home Business” endorsement to cover the liability of students visiting.
- Care, Custody, Control: The damage to the Steinway is property damage. Your business policy covers your gear. The injury to the kid is Liability. You need both.
- The Waiver Defense: Having parents sign a liability waiver helps, but it doesn’t stop the insurance denial if you have the wrong policy.
The “Why” (The Trap)
The trap is “Traffic.”
Home insurance rates are based on a private family.
A music teacher brings 20+ strangers into the home every week. This increases the risk of slip-and-fall lawsuits exponentially.
Insurers want premium for that risk. If you didn’t pay it (by adding the endorsement), you have no coverage.
The Investigation (My Analysis of Teacher Policies)
I checked the best way to insure a home studio.
MTNA (Music Teachers National Association)
- The Solution: They offer specific insurance for members.
- The Coverage: General Liability (Slip and Fall) + Sexual Molestation Defense (critical for teachers of minors).
State Farm / Allstate
- The Endorsement: “Incidental Business Liability.”
- Cost: ~
50−50−100/year. - Limit: Covers the liability, but check if it covers the piano damage caused by the student.
MusicPro
- The Gear: Covers the Steinway.
- The Liability: Optional add-on.
[IMAGE: Photo of a piano lesson setting with a “Liability Waiver” on the music stand]
Comparison Table
| Scenario | Standard Homeowners | With Business Endorsement |
| Student Slips on Rug | Denied | Covered |
| Student Damages Piano | Denied (Business prop) | Covered (Property) |
| Allegation of Misconduct | Denied | Covered (if specific rider) |
Step-by-Step Action Plan
- Call Your Agent: “I teach lessons. Do I need an endorsement?” (Yes).
- Join MTNA: The insurance access alone is worth the membership.
- Remove Hazards: Tape down rugs. Clear snowy walkways. Treat your home like a storefront.
- Background Check Yourself: If you teach kids, having a clear background check on file helps defend against negligence claims.
FAQ
Does the parent’s insurance pay for the piano?
Maybe. You can sue the parents, and their “Personal Liability” might pay. But it’s messy.
What if I teach online (Zoom)?
No liability risk for slip-and-fall! But your gear is still “business property.”
Do I need a business license?
For insurance? Usually no. For the city? Probably yes.