When it comes to protecting yourself and your business, understanding the difference between general liability and professional liability insurance is vital. Most personal trainers and fitness coaches only carry general liability insurance, but this may not be enough if a client sues you for damages or injuries resulting from your work.
Professional liability insurance offers excellent protection by covering claims against you for negligent advice or services rendered. So, what’s the difference?
Knowing the difference ensures you have the right coverage for yourself and your business. Let’s take a closer look so you can make an informed decision about which one is right for you.
Why Personal Trainers Need Insurance
Before we delve into the difference between general liability and professional liability insurance, let us learn why personal trainers or fitness coaches need insurance in the first place.
As a personal trainer or fitness coach, you are responsible for the well-being of your clients. You help them set and achieve their fitness goals, and in doing so, you build trust and rapport. But what would happen if one of your clients was injured while under your care?
Without insurance protection, you could face a lawsuit that could jeopardize your business and livelihood. Insurance coverage can help to cover the costs of legal fees and settlements, as well as any damages that the court may award to the claimant. It can also help protect your business if it has to close down due to a lawsuit.
That’s why it’s essential to have insurance coverage. Not only will it save you financially in the event of an accident, but it will also give your clients peace of mind knowing that they are in good hands. While no one likes to think about the possibility of something going wrong, it’s always better to be safe than sorry.
What is General Liability Insurance?
When you own a business, you want to protect it against potential liability claims. That’s where general liability insurance comes in. This insurance coverage can help pay for damages if a client or visitor sues your business for injuries or damage to their property. It doesn’t cover the business owner or employees, but it protects the company from being sued.
For example, if someone slips and falls in the gym and decides to sue, the general liability insurance would cover the legal costs. You could also be held liable if someone contracts an illness because of unsanitary conditions at your gym. You need to carry general liability insurance to protect yourself from these and other risks.
This type of insurance provides coverage for claims of bodily injury, property damage, and personal injury resulting from your business operations. Whether you run a small studio or a large gym, general liability insurance is essential to your risk management strategy.
What is Professional Liability Insurance?
Every fitness professional should have protection in case a client is injured while working out with them. Professional liability insurance, also known as fitness insurance, is protection that covers you if a client is injured while working out with you and files a claim against you.
This type of insurance can protect you from paying damages out of your pocket. It can also help cover the costs of legal fees if someone sues you. Professional liability insurance is essential to protecting your business, whether you are a personal trainer, yoga instructor, or group fitness instructor.
If you don’t have coverage and a client is injured while working out with you, you could be responsible for paying their medical bills, and they may even sue you. Don’t let this happen to you — ensure you protect yourself with professional liability insurance.
Knowing the difference between general liability and professional liability insurance ensures you have the right coverage for yourself and your business.
Do I Need Professional Liability Insurance?
As a fitness professional, you are passionate about helping others achieve their fitness goals. However, even the most experienced and well-intentioned fitness professionals can make mistakes that result in injuries to their clients.
Professional liability insurance protects you when someone sues you for negligence or wrongful injury. Even if the lawsuit is unsuccessful, the costs of defending yourself can be high. Professional liability insurance can help cover these costs and any damages awarded to the plaintiff.
In addition, many gyms and fitness centers require their employees to carry professional liability insurance. For compliance and best practice, it’s ideal that you have coverage. Professional liability insurance is a must if you’re serious about protecting your career and finances.
What Happens When a Client Sues?
When a client sues a personal trainer. The insurance company will investigate the claim and determine whether or not the trainer’s policy covers it. Suppose the trainer has protection against this type of lawsuit; in that case, the insurance company will typically provide coverage for the trainer’s legal fees and any damages.
In some cases, the insurance company may also provide coverage for the trainer’s lost wages if the case prevents the trainer from working.
Whether the policy provides coverage or not, the trainer will likely have to hire an attorney. The attorney will help gather evidence and build a defense. The trainer may be able to reach a settlement with the client without going to court.
If the case goes to trial, the court may order the trainer to pay damages to the client. The amount of the damages will depend on the circumstances of the case and the jurisdiction in which it is tried. Sometimes, a trainer could be liable for much more than just the cost of their defense.
It is important to note that not all insurance policies are created equal, and some may not provide protection against lawsuits. As a result, personal trainers must check with their insurance companies to ensure they are adequately protected.
Where and How to Get Professional Liability Insurance
Many trainers and instructors purchase insurance coverage through their employer, but it is also available through private insurers. The cost of premiums varies depending on the coverage and the deductible. Still, it is generally a relatively small price to pay for the peace of mind that comes with knowing you are protected.
Professional Liability Insurance vs. General Liability Insurance
Fitness professionals often ask whether they need professional liability insurance or general liability insurance. The answer depends on what type of protection they need. Professional liability insurance offers protection against claims of professional negligence, while general liability insurance offers protection against claims of bodily injury and property damage.
If a fitness professional is sued for damages arising from their professional services, they will need professional liability insurance to cover the costs of the lawsuit. Many in the fitness industry often refer to professional liability insurance as “malpractice” insurance.
On the other hand, if a fitness professional is sued for damages arising from an accident at their facility, they will need general liability insurance to cover the costs of the lawsuit.
While general liability insurance is vital for any business, professional liability insurance is particularly essential for fitness professionals, who may be held liable for injuries sustained by clients during workouts or classes.
Things to Consider When Choosing Professional Liability Insurance
First and foremost, it’s crucial to find a policy that offers the protection you need at a price you can afford. There are a few key factors to consider when comparing policies, including the type of coverage, the limits of liability, and the excess or deductible.
Type of Coverage
The type of coverage is one of the most important factors to consider when choosing an insurance policy. There are two main types of professional liability insurance: occurrence-based and claims-made.
Occurrence-based policies protect any incidents during the policy period, regardless of when the claim is filed. On the other hand, claims-made policies only protect you from claims filed during the policy period. Generally speaking, occurrence-based policies offer more comprehensive protection, but they may be more expensive than claims-made policies.
Limits of Liability
The limits of liability refer to the maximum amount the insurance company will pay out in case of a claim. It’s essential to choose a policy with limits high enough to cover the potential cost of a claim but not so high that you’re paying for protection you don’t need.
Excess or Deductible
The excess or deductible is the amount you’ll have to pay out of pocket in the event of a claim before the insurance company will start covering costs. A higher excess or deductible can help keep premiums down, but ensure you can afford to pay the amount in case of a claim.
Get Insurance Coverage That Meets Your Needs
No one wants to think about what could happen if a client sues them, but as a personal trainer, it’s best to prepare for anything. The first thing you should do is make sure you protect yourself with the right insurance coverage. Without insurance, you could be on the hook for thousands of dollars.
So, make sure you’re fully protected before you start training clients. It could save you a lot of headaches (and money) down the road. API Fitness provides comprehensive insurance coverage that will serve as your safety net from risks involved in working in the fitness industry. We have both professional liability insurance and general liability insurance to protect you on both sides.
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