As a fitness or health club owner, your top priority is the health and wellness of your clients. You and your staff work closely with your clients, pushing them to be the best and healthiest versions of themselves. But do you have the right insurance coverage to guarantee the health and wellness of your business?
From medical accidents to falls in the weight room and broken equipment, there are many unique risks to running a fitness business. Whether you own a cycling studio, yoga studio, martial arts studio, or gym, you will need various forms of coverage to protect your clients, employees, and business.
Here are ten types of insurance coverage you need if you own a fitness or health business.
General liability coverage will provide coverage if you, your employees, products, or services are considered negligent or cause bodily injury or property damage. It also protects your business from claims by patrons when they are on your premises.
This coverage is especially important if you hire independent contractors, such as personal trainers or physical therapists to work in your gym or studio. You will want to make sure that the contractor has a certificate of insurance with a general liability limit of at least $1 million with incidental medical malpractice coverage and adds you, the employer, as an additional insured.
This coverage will protect you against negligence claims on the part of your employees acting on your behalf. This may include dieticians, athletic trainers, or physical therapists.
Business Income and Extra Expense Coverage
If your gym or studio needs to close for a period of time due to a fire, flood or other problem, this coverage allows you to relocate your facility temporarily so you do not lose your valued members.
Workers’ compensation will cover claims associated with employee injuries occurring during the course of employment. Review your state’s workers’ compensation statute to determine if an injury in an employee-sponsored fitness center is a covered injury.
This policy covers incidents occurring previously, such as a patron hurting themselves on your equipment and complaining of the problem several years later.
Equipment Breakdown Coverage
If your treadmills, weight machines, air conditioning, or other equipment breaks, this coverage can protect you from expenses incurred due to these losses. If your business sells food products, this may cover the cost of a refrigeration breakdown and loss caused from spoilage.
Business Personal Property Coverage
In addition to your recreation facilities, your gym or studio may have offices, classrooms, locker rooms, a pool, or a gymnasium. This coverage will protect your business’s property in case of unexpected accidents.
Participant liability and Accidental Medical Coverage
This coverage is particularly important for owners of boxing or martial arts studios. These coverages provide protection for your business and members if they participate in sponsored tournaments or supervised competitions. Participant liability insurance protects you from liability claims as a result of the injury. Accidental medical insurance provides medical care for the injured participant.
Premises Liability Coverage
Premises liability is high when you own a fitness business due to the constant traffic of patrons and visitors. This coverage protects your business from liability if a client is injured within the studio or even outside in the parking lot. To avoid these risks, your facility should provide spotters for weight lifting, especially with free weights and should have well-maintained parking lots and sidewalks to prevent slips and falls. In the case of an accident occurring, premises liability policies will cover the claims associated with the event.
Employee Dishonesty, Money and Securities Coverage
This coverage will protect you against financial theft, computer fraud or identity theft. To prevent these risks, your business should perform background checks on all employees and have a strong IT network to protect your clients’ personal information.
In In addition to receiving the best insurance coverage for your fitness business, we recommend that you practice the following safety precautions:
- Provide a detailed handbook of fitness center rules for each member of the facility and require that individuals sign an acknowledgement statement for the handbook.
- Require members to have a physician’s approval before using the facility.
- Require members to sign a release of liability statement before using the facility equipment.
- Document all incidents involving patrons, regardless of the severity.
- Do not allow new members to use equipment before attending an orientation session.
Let Eastern Insurance do the heavy lifting for you. Reach out to us on our website or give us a call today at 800-333-7234 to discuss the coverage you need for your fitness business.
This article is for general informational purposes only and is not intended as medical or legal advice. © 2015 Zywave, Inc. All rights reserved.