Dear Insurance Broker:
“Why are you making me buy two kinds of yoga insurance? You suggest I need General Commercial AND Professional Liability Insurance. Can I buy just Professional Liability? I am only worried about people getting hurt during yoga, not slipping in the lobby? Is that not the spa or gym owner’s responsibility. I know you are a specialist in yoga insurance, so I’d like to understand more. – Yours truly.”
The above is one of the most common questions asked about Yoga Insurance in Canada. Sold together, General Commercial and Professional Liability Insurance provide complete coverage. Brokers and Insurance Companies are united in their efforts to ensure both polices ARE sold together. When sold individually, there is a gap in coverage.
HOW IS AN INSURANCE POLICY WRITTEN IN CANADA
First, one needs to understand how insurance is “written.” An insurance policy is being “written” when developed or created. This insurance jargon term comes from the 1800s. At that time, insurance companies wrote policies manually between the insurance company and the insured. How is a policy written today? The written policy applies to inclusions and exclusions from various parts of your yoga insurance.
CGL & PLI
The primary liability coverage of all insurance in Canada is called General Commercial Liability (CGL). CGL defends against lawsuits from accidents such as slip and falls. CGL EXCLUDES lawsuits from professional services. The court deems you a professional as a Yoga Teacher. You are probably thinking, why would the primary type of insurance exclude me from my profession? The answer is to add some form of coverage for Professional Liability Insurance (PLI).
The addition of Professional Liability (PLI) can happen in several ways. All have pros and cons. The first and most common is to remove the exclusion of PLI. By doing so, this extends coverage from the CGL to PLI. Another way is to take coverage from the PLI and “write” them into the CGL. You could also write two separate coverages on two separate limits and give them both to the insured. Each of these ways provides coverage to the insured in different forms; however, they create different premiums and claims procedures.
HOW THEY APPLY
When you have a claim for yoga insurance, it is most often ACCIDENT during YOGA. As I mentioned above, this accident will need both professional and commercial general liability. Here is one of the best examples from my yoga insurance broker experience. The accident involved a headstand, a puddle, and a doctor. The claim happened while instructing yoga students how to do a handstand against the wall. A surgeon happened to be in the class that day. The surgeon’s yoga mat was on top of puddled water from a spilled water bottle. At the height of their hugely successful handstand, the mat slipped with the weight. The surgeon came crashing down on their head, resulting in a very severe concussion. The surgeon missed work for two months. Of course, you do not want a medical professional operating on someone while not in top health!
The surgeon sued the yoga instructor in two ways. First, the lawsuit stated that the floor was not safe, forming the slip and fall part of the claim. The second part of the lawsuit said that the yoga instructor should have made sure the space was safe to practice. Both claims are valid. The judge, however, may choose to focus on just one aspect of the claim.
That is why it is good to have two types of insurance. Commercial General and Professional Liability (CGL & PLI) are both needed. For one claim, one can see the necessity of both. Other examples of a yoga insurance claim that require both coverages are acro-yoga claims, yoga that involves equipment, and very fluid flows. When balance is needed, people can easily slip and fall.
I hope this has answered why we suggest you buy yoga insurance that includes both CGL and PLI. General Commercial AND Professional Liability Insurance are essential insurance coverages in any event. Our job is to make sure you have the best coverage. We work with the insurance companies to ensure you have the Coverage Advantage. In the event of an accident, we want our clients to have 100% coverage. We are always available to answer any of your questions. Reach out to your Healthy Broker to ensure you understand your yoga insurance policy!
