Fitness Center Insurance

Fitness center owners should seriously consider fitness center insurance, because of the amount of risk they have. As a fitness center owner, you can try to make your gym as safe as possible, but you can’t eliminate all risks. Some things can happen that are out of your control, and you don’t want to be left paying for them out of pocket. That could be financially devastating.

Risks include simple things like people slipping and falling in the bathroom, which can lead to costly injury claims. You may have an employee hurt themselves moving weights around the gym, leading to medical bills and lost work time. These are common claims that you don’t have to deal with if you have the right insurance policy.

Remember that fitness center insurance is a series of policies; it isn’t one catch-all policy. Different policies protect you from different types of risks. Your gym may need one or more policies to get the proper coverage. This is why it is vital to understand what each type of insurance policy covers.

General Liability

General liability insurance is one of the most basic policies that you can get that covers you for the most common types of claims. Your landlord will likely require you to obtain a general liability policy so that claimants don’t try to sue them and they know that you are protecting the property in case of a fire.

A general liability policy provides protection from things like a slip and fall accident. These are common claims in gyms, as are claims where someone got injured by using a fitness machine. Machines have a lot of moving parts, and someone may get a finger caught in a machine’s joint, crushing it and leading to injury. General liability insurance pays the medical costs and any legal costs associated with the claim.

Business Personal Property

A fitness center has a lot of business personal property to manage. There are free weights that customers use as well as the machines and workout aids that help people get through their workouts effectively. A business personal property policy, also known as a commercial property policy, pays for you to replace equipment lost in a claim. Claims vary; you never know when you’ll have a complete loss.

For example, if there is a fire in the building and all the equipment burns and is no longer useable, your business personal property policy would pay to replace it. Similarly, if someone broke in and stole your equipment, you’d get it replaced by this policy. Remember that there is more to your business personal property than just the equipment. This policy also covers any check-in computers and furniture.

Professional Liability

Many fitness centers will also want to have a professional liability policy. This type of policy pays claims that arise from professional errors. A typical example for gym owners is where you incorrectly explain how someone should do an exercise, and they injure themselves. You could be held professionally liable for their injuries and ordered to pay their medical expenses and other losses.

You might be thinking that this wouldn’t happen to you because you’re very diligent about running a professional shop. What’s important to remember is that people can sue you for any reason at any time. Even if the lawsuit is frivolous, it requires you to defend yourself, which costs money. Fortunately, your professional liability policy kicks in and pays for those legal costs to defend you preventing you from having to pay everything out of pocket.

Abuse and Molestation

When running a fitness center, you or your employees may find themselves close to customers and clients. You may put your hand on someone’s shoulder or lower back to help them get the correct form in performing an exercise. As innocent as the gesture is, clients can misconstrue it as physical abuse or molestation.

Having an abuse and molestation policy will help you have the right protection for such accusations. These claims can lead to high defense costs and settlements. You don’t want to be left unprotected if an abuse claim arises.

Excess Liability

Excess liability insurance is a type of policy that adds another layer of coverage to a general liability policy. It increases the coverage by the amount of excess liability coverage that you choose for a lesser price than just increasing your general liability policy. For example, assume you have $1 million in general liability coverage. Someone gets hurt on the property and sues you for $1.5 million in damages. The general liability policy covers the first million, and the excess liability policy covers the rest up to policy limits.

Workers’ Compensation Insurance

If your fitness center has employees, you likely need to obtain a workers’ compensation policy. These policies are required in all states except Texas and usually kick in when you have at least one part-time employee. Even if it weren’t required, you’d still want to get a policy to protect you from having to pay medical bills and lost wages of employees injured while working.

Keep in mind that your employees are working in an environment with many machines and heavy weights. It’s easy to get hurt tidying up the gym. If they get hurt, this is your responsibility, and you’ll have to pay out of pocket if you don’t have workers’ compensation insurance.

Fitness Center Insurance Cost

Gym insurance costs vary widely. The factors that affect your premium include:

  • The types of policy(ies) purchased
  • The amount of coverage needed
  • Your location
  • Your industry
  • Total annual revenues
  • Claims history

It is possible to get a general liability policy for as little as $25 per month with $1 million in coverage. Considering the potential costs of claims, this is a small price to pay for protection.

Fitness Center Insurance FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

Why Do Fitness Centers Need Insurance?

Fitness centers and gyms have a lot of inherent risks involved in the business. There are lots of ways for people to hurt themselves or otherwise experience a loss. If you don’t have insurance, you must pay for these claims on your own. This could bankrupt a small business that doesn’t have the savings to pay for it.

What Are The Risks Facing Fitness Center Owners?

There are common risks in fitness centers. Risks include wet floors in bathrooms or fitness rooms where someone may slip and fall, heavy weights that can cause injury, and theft. Gym owners can mitigate these risks by having the right insurance.

Is Insurance Required For Fitness Centers?

Your landlord will likely require you to get at least general liability insurance. You must obtain workers’ compensation insurance in most cases if you have employees. Check with your local business licensing board to see if there are specific policies that you must carry, as this may vary among cities and states.

How To Get Fitness Center Insurance

Getting fitness center insurance is a breeze when you have the right insurance agent who understands your business and the risks it faces. The process of getting a policy starts with a quote. One of our agents will ask you a series of questions to better understand your business and make sure we provide you with the right solutions. From there, agents generate quotes. You can add or reduce coverage as needed to tailor the policy to your needs. When everything looks in order, you purchase the policy by paying the initial required premium.

Do ask your agent about any eligible discounts that could reduce your premium. Things like a security system will often yield a discount on the price.

Are Monthly Payments Available For Fitness Centers?

We offer easy monthly payment plans with most of the polices. Usually a down payment is required to start. Payment plans may include 9 or 10 monthly options depending on the qualifying business.

What Are The Penalties To Cancel My Insurance Policy ?

USA Business Insurance Services doesn’t penalize customers for policy cancellations. When you cancel your Insurance, you are not required to pay penalties.