Business insurance for yoga teachers

No, insurance for yoga instructors isn’t legally compulsory in Australia, but most studios, gyms and local councils will insist you hold active coverage to teach, rent space or operate on their premises. Operating without insurance can leave you personally liable for legal fees or compensation claims should an accident happen during a class. If you are renting a yoga studio, most landlords may require you to have cover before operating classes in their property.

There is no law requiring yoga teachers to hold public liability or professional indemnity insurance. Workers compensation is different. If you employ staff, it is compulsory under your state or territory scheme.¹ If you are self-employed and have no staff, you will generally not need it.

Some yoga associations may also require you to have a level of cover as a condition of membership. This can include protection for past claims that are made after you stop teaching yoga (known as run-off cover).

Insurance for a yoga teacher in Australia can cost about $30 a month,² according to data from BizCover. That works out to be about $360 a year for cover, although this figure will likely depend on your level of risk, coverage limits and whether you run a studio or operate independently.

Prices may also vary based on factors such as your income, number of classes you run, types of services you offer and any additional cover such as studio or equipment insurance.

Professional indemnity is a type of business insurance that can help you if you’re alleged to have provided inadequate or incorrect advice or services.

Yoga is a physically intensive activity, which might increase the risk of negligence claims if clients injure themselves. Professional indemnity insurance can cover compensation that a third party may claim for professional negligence, alongside your defence and legal costs.

For example: a client with a sore back attends your yoga class and follows your guidance. They later claim your advice worsened the injury. Professional indemnity insurance may help cover the costs of responding to their compensation claim, even if you took reasonable care.

Professional indemnity insurance won’t cover the following:

• illegal or fraudulent acts
• property damage
• intentionally causing harm
• employee injuries (this would be covered under workers compensation insurance).

Please refer to the Product Disclosure Statement of all business insurance policies for the full list of inclusions and exclusions.

Public liability insurance is designed to cover bodily injury to third parties or damage to property due to the business’s negligence. If your client or a member of the public makes a claim against you for injury as a result of your business activities, this insurance may cover the claim.

Public liability insurance can cover anyone who comes into contact with your business, from your clients to a contractor or tradie working at your studio.

If you take classes beyond a studio’s doors on to council-owned land, the council may also require you to hold a suitable level of public liability insurance.

Let’s say a tradesperson is installing new light fittings into your studio. As they’re walking through your studio, they trip and fall on a water spill you forgot to clean up, injuring themselves and smashing their phone. Public liability insurance could cover claims arising from both the injury and their damaged property.

However, public liability insurance will not cover:

• injured staff
• unlawful acts
• professional negligence claims.

Portable business equipment can cover your items from loss or damage, including if your equipment is stolen from your locked vehicle.

As yoga can be taught beyond a studio and in public spaces, there is a higher risk of equipment being stolen or damaged.

It’s important to make sure you list and value your items on your insurance certificate.

It’s also possible to get cover ranging from income protection to cover for income loss following insurable events such as natural disasters. Some other cover options include, but aren’t limited to:

• Personal accident cover,* which can help you receive income while you’re unable to carry out your usual duties if you become unwell or injured. This type of cover can be especially helpful if you don’t have other staff to fill in for you.
• Cyber liability cover,* which covers losses from claims arising from data breaches (e.g. hacking). If you take customers’ data for scheduling classes, this type of policy can offer great peace of mind.

As part of a business insurance pack, you can also look at cover for:

• Business interruption,* where an insurable event such as a fire, storm or theft stops you from being able to run your classes, and available where you take out cover for your building or contents.
• Employment practices liability.* Every business with staff is at risk of employment-related claims, even if you do everything within your power to ensure a safe and fair work environment. This type of cover helps protect you from financial loss caused by employment-related claims, such as wrongful or unfair dismissal, harassment or discrimination. So, if you head up a team of instructors, this could be an invaluable policy to take out.

Discover more business insurance options by trying our free comparison service. Simply enter a few details about your yoga business, and we’ll present you with a range of industry-relevant cover options from some of Australia’s top insurers.

*As with any insurance, cover is subject to the terms, conditions and exclusions contained in your policy document. The information contained on this webpage is general only and should not be relied upon as advice

One professional body for yoga instructors in Australia recommends holding $10 million in public liability and $2 million in professional indemnity cover. If you work with higher-risk clients such as people with disabilities or rehabilitation clients, it may be appropriate to find cover with a higher sum-insured limit. Many insurers will offer up to $10 million in professional indemnity cover and $20 million in public liability insurance.

The level of cover you’ll need to take out will depend on a range of variables, such as:

• how many staff work for you
• your annual revenue
• the number of clients
• your location.

When comparing cover, think about the risks that could arise as a yoga teacher. This includes the type of claims that could occur and, consequently, what could be the potential costs if a claim was made against you.

You should also check with your industry body to see if you need a minimum level of cover before you can become a member.