All You Need to Know
Commercial gyms or fitness studios should consider purchasing insurance to protect trainers and patrons in case of accidents or injuries. According to the National Safety Council (NSC) 409,000 people were injured while using exercise equipment in 2021 – the most injuries recorded in any category of sports and recreation.
Business liability insurance covers the costs of medical bills, property damage, and legal fees if your business is sued. Policies can be customized depending on facility size, services offered, equipment available, and other relevant factors. With this essential security measure in place, businesses can be worry-free, knowing they have a safety net against potential claims.
In this blog post, we’ll go over everything you need to know about business liability insurance, including the different types of coverage available and what you should look for when choosing a policy.
What Is Gym Insurance?
Gym insurance is designed to protect you from financial loss in the event of an accident, injury, or damage to property that occurs on your premises. It manages risk and ensures that you’re financially secure in the event of any potential legal action.
Gym insurance typically includes both your business and its personnel. However, it is important to note that each policy varies depending on your facility, size, and the type of equipment and services you offer.
Do You Need Gym Insurance
Any fitness or gym business should have a comprehensive insurance plan in place. If you’re worried about upfront costs, rest assured that insurance coverage is often affordable and can provide a high level of protection for your business in case of an accident.
Let’s say you have a gym with a climbing wall on the premises, and one of your members falls while trying to climb it. If they sustain an injury, you could be held liable for medical expenses and any additional costs related to the accident.
Business liability insurance covers these costs, so you don’t have to pay out-of-pocket. Without gym insurance, you could be stuck with expensive medical bills and legal fees that could put your business in serious financial trouble.
Basic Gym Insurance You Need
Whether you’re thinking about starting a 24/7 gym or a yoga studio, there are three basic types of coverage to consider:
1. General Liability
General liability insurance for small businesses like gyms covers any third-party claims of bodily injury or property damage against you, your staff, or business operations. For example, if a patron trips and falls, this policy will cover the medical costs associated with their injury.
Small business general liability also includes legal costs up to the policy limit. The insurance company will pay for your defense if the injured party decides to take legal action.
2. Professional Liability
Also known as malpractice insurance, professional liability protects you from claims of negligence, errors, omissions, or malpractice. For instance, one of your fitness instructors may give incorrect advice or suggest a technique that results in injury. Professional liability pays for the legal fees and settlements.
3. Product Liability
This covers any injury claims due to a product you sell or distribute at your gym. For instance, if a customer experiences any adverse reactions to a nutritional supplement, this policy will provide coverage.
Other Types of Gym Insurance to Consider
Gyms have evolved significantly over the past few years, and some offer services that require extra coverage. Here are a few additional policies you should consider for your facility:
1. Commercial Property Insurance
Your gym likely has expensive equipment and valuable assets that must be protected from fire, theft, or vandalism. Commercial property insurance will reimburse the cost of replacing damaged or stolen items.
2. Workers’ Compensation Insurance
If you have employees, workers’ compensation insurance is a must. This covers medical expenses and lost wages for any employee injured at work.
3. Cyber Liability Coverage
Online payments are becoming standard for many gyms, which opens you up to potential cyber risks. Cyber liability insurance protects your business from any data breaches or losses due to cybercrime.
For example, when a member’s credit card information is stolen or a virus infects your system and shuts operations down.
4. Equipment Breakdown Coverage
Sudden breakdowns of essential equipment can impact your operations and finances. Equipment breakdown insurance covers repairing or replacing damaged equipment such as treadmills, weight machines, ellipticals, and free weights.
5. Business Interruption Insurance
Whether it’s a fire, a power outage, or a natural disaster, business interruption insurance covers the lost income and necessary expenses while your facility is closed. This will help you bounce back quickly once you’re able to reopen.
6. Medical Payment Coverage
Medical payments are usually covered by general liability. However, for some, it is optional. Medical payment coverage pays for basic medical expenses for injured members at your facility. This includes doctor visits, hospital stays, and prescriptions.
7. Employment Dishonesty Coverage
For employers, it’s important to protect your business from employee theft or embezzlement. Employment dishonesty coverage reimburses you for any financial losses due to fraudulent activities by staff.
What Is the Average Cost of Gym Insurance?
The average cost of business liability insurance for fitness gyms depends on various factors, such as the type of gym, the number of members, and the level of liability coverage. Generally speaking, an LLC with 10-50 members that want $1 million in coverage can expect to pay anywhere from $400 to $1,100 per year for their business liability insurance.
For bigger businesses with more members or higher liability limits, rates may reach thousands or tens of thousands per year. Ultimately, the best way to determine how much liability coverage your gym needs is to contact an insurance expert like API Fitness and provide them with pertinent details about your gym.
How to Choose the Right Coverage for Your Gym
It’s important to consider your unique risks and needs when selecting coverage. For example, what services do you offer? How many employees do you have? Do you accept any payments online? Here are helpful tips for choosing the insurance that’s right for your gym:
Review Your Current Policies
Start by taking an inventory of your current policies and consider whether additional coverage is necessary. Identify any gaps or areas of exposure that need to be addressed. For example, are you adequately covered in the event of a lawsuit?
Consider Unique Risks
Different types of gyms have different risks. If you offer personal training, understand the potential liability you may face. If you run a 24-hour gym, consider the potential dangers of having your facility open late at night.
Secure Multiple Quotes
Compare rates from several insurers to find the best coverage that fits your budget. Most insurers offer discounts for bundling policies, so consider that option as well.
Check the Insurance Requirements of Vendors
If you contract with any outside vendors, make sure to verify their insurance requirements. Some vendors are particularly strict about their insurance specifications, so follow their guidelines.
Get Professional Advice
Unfortunately, there is no one-size-fits-all solution when it comes to insurance. For the best advice, work with a professional insurance broker who can help you choose the best coverage for your business.
FAQS on Gym Insurance
Q: What if I don’t have insurance for my gym?
A: While you may be able to operate without insurance, it is strongly recommended that you purchase adequate coverage to protect your business from potential liabilities. Without insurance, you could be held liable for any medical bills or lawsuits resulting from injuries sustained at your gym.
Q: Can we get discounts on gym insurance?
A: Some insurers offer discounts if you bundle multiple policies together. Additionally, many insurers will offer discounts for gym owners who have implemented a comprehensive safety program or training protocols.
Q: What types of coverage are typically included in gym insurance?
A: Generally, business liability insurance for fitness gyms includes general liability, property damage, and professional liability coverage. Some policies will also cover medical payments for any injuries sustained at the gym.
Additional coverage, such as workers’ compensation or cyber liability, may also be available.
Q: What if I exceed the coverage limits of my gym insurance policy?
A: If you exceed the limits of your liability policy, you may be held responsible for any remaining fees that arise. To avoid this, it is crucial to purchase an adequate amount of coverage that meets the needs of your business.
Q: Can I insure my employees with gym insurance?
A: Yes, you can purchase workers’ compensation insurance to provide coverage for employees in the event of a workplace injury. Additionally, some insurers also offer group health insurance plans that are tailored for fitness businesses.
Q: How long does it take to get approved for gym insurance?
A: The time frame to obtain approval will depend on the individual insurer, but you can typically receive a quote within a few days. To expedite the process, provide all requested documentation and complete any necessary forms as quickly as possible.
In Summary
Finding the right coverage for your gym can help keep you, your staff, and your clients safe and protect your business from any financial risks. Be sure to speak with an insurance professional who understands gyms and other fitness facilities’ unique needs.
They can weigh the pros and cons of different coverage options and help you choose the right policy for your business.
Be Prepared for Any Contingency
Accidents and mishaps can occur anytime, so having the right coverage is crucial to ensure a worry-free operation. API Fitness is the go-to source for fitness businesses looking to protect their business and minimize risk.
Our experienced insurance experts will review your business needs and previous coverage and provide comprehensive options tailored to your unique situation. Get in touch today to learn more about our reasonably priced insurance plans.
