Simpedia

Cindy B. Illinois

With the home insurance we have, there’s a very small amount added to it that actually meets the needs of private piano teachers. It covers accidents and liability should someone get hurt on my property.

Carrie L. Michigan

I called my homeowner’s insurance and added more coverage for the business, it was quite cheap to increase it and in my opinion worth it. I have L. Music as an LLC. I also have a bank account in that name (finally set it up this year sadly). I have an excellent CPA Amber. She’s very cheap and VERY helpful. She helped me set up the LLC.

Laurie Richards, Nebraska

You should have liability insurance in your business’ name. It protects your personal assets should someone get hurt while at your house for your business. Mine costs $245/year right now.

Robin T. Tennessee

I AM licensed and I know the rules! We’ll just call that one of the CRAPPY JOBS that lead me to Simply Music! OK, here is the deal. All you need is your Homeowners Insurance. Your agent may tell you differently (because they are trying to sell you something). But, basically, you aren’t teaching anything that is dangerous, requires large equipment, etc. If you were teaching Karate, it may be different. HOWEVER, if you have the funds, you may want to look at purchasing what most companies call a Personal Liability Umbrella policy. This is just what is says… It is an Umbrella over you and anything you! Most companies will require you to go through quite a lot to get this policy (in terms of questions, etc. They may make you raise your limits on your vehicle as well) but it is worth it. You buy them for a monetary amount, usually starting at $250,000 of coverage and it goes up to $1 or $2 million. What the umbrella does is it picks up coverage after your other insurance has paid. EX. Let’s say you are in a very bad car accident and it is your fault. The person you hit is paralyzed. You could really be looking at a hefty law suit and tons of medical bills. Your vehicle insurance has coverage for medical bills, but it is typically only about $10, 000 (that is the state minimum in TN) unless you raise that. Well, we all know that if the ambulance comes, there goes your $10,000. Anything after that amount, YOU are responsible for paying. And, you will pay it! They will make you sell your house, garnish your wages, etc. So, if you have the Umbrella policy, that will kick in to pay those amounts. This is a very good policy to get if you have a teenage driver.

As it relates to you and your home business, here is another example (one that actually happened to my parents). Let’s say you are having a dinner party and someone asks you where the restroom is. You say, around the corner, door on the right. But, when they round the corner, there is a door on the right and one on the left as well. They take the left door, which is actually the door to your basement, and down they go. My parent’s dinner guest fell down the whole flight of wooden basement stairs and crashed onto a concrete floor and into a wooden rack that held paint cans which then fell on her as well. She broke her hip. Now, even though that really wasn’t my parents fault, it did occur at their home. And, if the lady wanted to be mean (or couldn’t afford her medical bills) she could sue my parents to pay and say that they should have had a sign on the door. In most home owners policies, they only have about $1,000 to cover medical expenses. Again, anything over that you are responsible for. So, the umbrella would kick in there as well.

As for having a business, here is another example that the umbrella would cover. And, I know that none of us would ever do this, but I have to use it as an example. Let’s say you have a little boy whose mom is a running late picking him up. And, so, it is just you and him there in the home. And, that evening you get a very disturbing call from the parents saying that the little boy says you “did things to him” or “touched him” inappropriately. So, now it is your word against his. And, it goes to trial…. Your personal liability umbrella policy would kick in to assist with lawyer fees, etc.

It really is a wonderful policy to have and they are only a couple hundred dollars a year. But, it covers you COMPLETELY! Every aspect of you from your car, your home, and your personal life. I would recommend that you look into it if you are teaching out of your home simply because someone could slip on an icy step, or GOD FORBID you get a call like the one mentioned above. I would like to think that that never would happen, but working in Insurance I can tell you that it does happen, to good people, all the time! It’s just the world we live in. I hope this helps!