I own a studio. My 6 PM teacher dropped a student during an assist. The student sued the teacher and my studio. My insurance company says the teacher was an “Independent Contractor” and therefore not covered by my policy.
Key Takeaways
- Vicarious Liability: Employers are liable for employees. For contractors, it’s murkier, but plaintiffs sue everyone.
- “Additional Insured”: You must require every teacher to add your studio as an “Additional Insured” on their policy.
- Separation of Insureds: Your policy protects you. Their policy protects them (and you, if endorsed).
- W-2 vs. 1099: If you control the sequence, music, and script, the IRS (and insurance) might view them as employees, meaning you should have covered them.
The “Why”: The COI Gap
The Trap:
Teacher has insurance.
Studio has insurance.
Teacher gets sued. Teacher’s insurance pays.
Studio gets sued. Teacher’s insurance denies Studio because Studio wasn’t listed as Additional Insured.
Studio’s insurance denies because Teacher wasn’t an employee.
Result: Studio pays out of pocket.
The Investigation: I Quoted 3 Major Carriers
1. The Hartford (Studio Policy)
- My Analysis: They allow you to cover contractors as insureds, but it costs extra. Worth it for peace of mind.
2. NEXT (Teacher Policy)
- My Analysis: Teachers can add the studio for free on the app. MANDATE THIS.
3. PHLY
- My Analysis: They require you to maintain a file of all teacher COIs. If you are missing one during an audit/claim, they might deny coverage.
[IMAGE: Screenshot of a Certificate of Insurance with “Certificate Holder” filled out]
Comparison Table: Studio Liability
| Scenario | Teacher Insurance | Studio Insurance | Outcome |
| Teacher = W2 | N/A | Covers Both | Safe |
| Teacher = 1099 (No COI) | N/A | Denies Teacher | Disaster |
| Teacher = 1099 (With COI) | Pays Claim | Pays Defense | Safe |
Step-by-Step Action Plan
- Collect COIs: Every teacher. Every year.
- Add AI Status: Ensure your studio name is in the “Description of Operations.”
- Check Employment Status: If they are W-2, buy Workers Comp.
- Indemnification: Have a contract saying “Teacher agrees to indemnify Studio.”
FAQ
Can I force teachers to insure me?
Yes, it’s standard industry practice.
What if they are a sub?
Subs need insurance too.
Does my policy cover the front desk staff?
Yes, they are usually employees.