Every year, more Americans join gyms. From exercise-specific fitness centers like yoga, Pilates, and CrossFit to general health centers, millions of people are investing their time and money in staying healthy and fit. As a gym owner, you're responsible for maintaining safe premises for the public and also protecting your business from numerous causes of loss, such as lawsuits and damaged commercial property.
Fortunately, a local independent insurance agent can help you find the right gym insurance to protect your business. Your agent can shop and compare policies from multiple carriers to find you the best coverage for your unique gym. But first, here's a closer look at what gym insurance is and what it covers.
Key Takeaways - Gym Insurance
- Gym insurance can protect your fitness business from many types of loss, such as member lawsuits, broken equipment, and fire damage.
- Having gym insurance may actually be legally required, depending on your location.
- Personal trainers and other professionals might need separate coverage in addition to the gym's master policy.
- The cost of gym insurance can vary considerably depending on the type of facility you run and its services.
- It's highly recommended to work with an independent insurance agent, as they can tailor a policy to meet your unique facility's needs.
What Is Gym Insurance?
Gym insurance is a special type of business insurance with added liability coverage that protects you from a variety of incidents that could occur at or in your gym. This tailored insurance package can protect fitness businesses from many different risks, ranging from member injuries to broken equipment and more.
Whether you run a fitness center with equipment, a yoga studio, or a Pilates studio, gym insurance coverage includes a combination of protections, with the main components being business insurance and general liability insurance. An independent insurance agent can help you build a complete fitness business insurance policy that protects every aspect of your gym.
Why Gym Insurance Is Essential
When you own a facility where people visit and operate equipment, it's critical to protect your patrons and your company's property. You need protection in case an incident occurs, such as a fire, theft, or equipment damage. Your gym also needs protection against member lawsuits for claims of injuries or personal property damage at your establishment.
Gym insurance might also be required to comply with local and state regulations. Having fitness business insurance can also help your gym safeguard its assets and ensure that business operations can continue if a disaster arises. Here are some common risks associated with gyms:
- Trip and fall accidents: These include those resulting from tripping over equipment, being bumped by another person, or falling over someone else’s personal items.
- Major and minor injuries: These can range from ankle strains to spinal injuries that lead to disability.
- Major and minor health issues: These can range from catching viruses from contaminated equipment to cardiac arrest while exercising in the facility.
- Patron claims of inadequate services: Gym members can claim the methods and workout routines did not produce the results advertised, and press charges against your facility.
- Damaged or stolen equipment: This can include equipment and other business property stolen, lost, or damaged by many types of disasters, such as fires.
- Potential shutdowns: Temporary or permanent closures may occur if a fire, equipment failure, or water damage occurs, such as if a sprinkler is accidentally bumped during a workout.
An independent insurance agent will help ensure that your gym insurance policy addresses all the potential risks associated with your industry.
What Does Gym Insurance Cover?
Gym insurance is tailored to the particular risks of your unique establishment, but policies often contain a mix of liability coverage, property coverage, and business interruption coverage. You'll also need protection for any employees.
There are several key types of gym insurance to consider, including:
- Commercial property insurance: This covers your fitness business's equipment, property, tools, and inventory against many different types of loss, including theft, vandalism, and fire damage.
- General liability insurance: This covers third-party claims of bodily injury or personal property damage, such as if a gym patron trips over a piece of equipment left out on the floor and suffers an injury.
- Professional liability insurance: Also called errors and omissions insurance, this covers trainers, coaches, and other professionals you employ at the gym against third-party claims of negligence during professional services. If a member sustains an injury from a personal training session, for example, this coverage could pay for various costs associated with the incident, including medical expenses and legal defense in a lawsuit.
- Business interruption insurance: This covers ongoing operating expenses, such as rent and employee salaries, during temporary gym closures due to covered disasters, such as fire damage.
- Workers' compensation insurance: This covers many costs associated with employee injuries, illnesses, and fatalities caused by the job site or work tasks and exempts your gym from lawsuits filed by employees and their families for these incidents.
Additional coverage for gyms to consider:
- Cyber liability insurance: This can cover various expenses associated with data breaches, cyberattacks, and other digital threats to your gym, including the cost of your legal defense in a lawsuit.
- Equipment breakdown insurance: This can cover the cost of repairs and replacements to your gym's equipment if it breaks down due to a covered cause.
Ask your independent insurance agent to help you assemble a complete gym insurance policy that covers each component of your facility.
What Gym Insurance Doesn't Cover
No matter how much coverage you get, there are still a few things that are not covered by gym insurance. It's important to be aware of your gym insurance policy's exclusions, which often include the following:
- Additional health services: If your gym also offers massage or acupuncture, you'll need additional insurance to cover these services.
- False statements and guarantees: If you promise a client that they'll lose 20 pounds in three weeks, and they don't lose that weight and sue you for false guarantees, your insurance will not cover the scenario. It's best to never promise anyone they'll see specific results.
- Minors in the gym: If someone under the age of 18 is injured in your gym, you will most likely not be covered.
- Supplement, oils, or other product sales: Selling third-party products to your gym members is typically not covered under gym insurance.
- Specialty fitness facilities: If you operate a martial arts studio, swim center, dance studio, or anything other than a basic fitness facility, you may not be covered under gym insurance.
An independent insurance agent can help you get equipped with the right type of coverage for your unique fitness center.
How Much Does Gym Insurance Cost?
The average annual cost of general liability insurance for a gym ranges from $500 to $2,000. The cost of a complete gym insurance policy will depend heavily on all the types of coverage your facility needs, and other factors, such as:
- Your gym's size and location
- How many employees you have
- Annual gross revenue and employee payroll
- The services and classes you offer
- Your equipment's value and condition
Here are some average costs for specific types of gym insurance:
- General liability insurance: $500-$2,000 per year
- Professional liability insurance: $300-$1,000 per year
- Commercial property insurance: $500-$2,000 per year
- Workers' comp: $400-$2,500 per year
Gym insurance costs can vary widely depending on the specifics of your fitness center. An independent insurance agent can help you find affordable fitness insurance premiums near you.
How to Get the Best Gym Insurance Quotes
Before choosing your gym insurance policy, you'll want to assess your business's needs, including your gym's size and the services that need protection. It's helpful to compare several of the best gym insurance providers to find the right policy. An independent insurance agent can do this for you, explain key terminology, and help you understand each policy's coverage limits, exclusions, and premiums.
When you're ready to work with an independent agent to get gym insurance quotes, there are a few pieces of information that you'll need. Having this information available to hand over to your independent agent can help the process move efficiently:
- Gym location and size
- Owner information and experience
- Details of business operations
- Gross annual sales
- Number of employees
- Annual payroll
- Tools and equipment valued over $1,000
- Number of claims in the past five years
- Dates of claims
- Amounts paid to settle each claim
- Any errors and omissions or monetary demands
- Age of any buildings
- Square footage of all buildings
- Building construction type
- Building safety features
An independent insurance agent can help you find the best gym insurance policy available from a top-rated carrier near you.
The Benefits of an Independent Insurance Agent
Gym insurance is essential to protect your fitness establishment against many different risks, ranging from the common to the unexpected. Thankfully, you don’t have to navigate this experience alone.
An independent insurance agent can walk you through handpicked gym insurance options and gather quotes from multiple carriers for you to find the best policy. Most importantly, if you ever need to file a claim, your agent will be there to help you through the entire process.
FAQs About Gym Insurance
Is gym insurance mandatory?
This depends on your local regulations and business structure. Review your state's laws for fitness establishments to be certain of whether insurance is required. Either way, having coverage is highly recommended to avoid catastrophic losses.
Do personal trainers need separate insurance?
Yes, personal trainers often need separate insurance from the gym's master policy, especially if they operate independently. Personal trainers might need to get their own professional liability insurance policies.
Does gym insurance cover injuries during classes?
Yes, gym insurance can cover injuries during classes. Depending on what exactly caused the injury, it may be covered by the gym's general liability insurance or the class teacher's professional liability insurance.
Can I customize my gym insurance policy?
Yes, many insurance providers offer customizable gym insurance packages that you can tailor to your unique facility.
How can I reduce my gym insurance premiums?
If your gym implements safety protocols and regularly maintains its equipment, this can help reduce your gym insurance premiums. An independent insurance agent can also help find any coverage discounts you qualify for.
Sources
https://fitsmallbusiness.com/gym-insurance/
