Gym Fitness Insurance Policy Information
Gym Fitness Insurance. Fitness centers or health clubs provide exercise facilities for clients who want to improve or maintain their physical condition. Facilities generally include such equipment as elliptical trainers, free weights, rowing machines, stair climbers, stationary bicycles, treadmills, and weight machines. There may be basketball courts, boxing areas, handball, squash or tennis courts, locker rooms with showers, pools for lap swimming or water aerobics, saunas, snack bars, tanning beds, or whirlpools.
Group exercise classes, individual counseling, or personal training may be offered, sometimes at an additional charge. Some centers provide diet counseling along with the preparation or sale of foods and nutritional supplements. Facilities may be available on a first come, first serve basis, or may require appointments.
Is your gym protected from potential liability? You may not realize the peril your fitness gym is in just by its operation, but the risks are real. Runners may not be often seen as potential victims for heart attacks, but the truth is that runners are subject to the same stressors and conditions as people who don't run. Cardiovascular activity definitely has its health perks, but in some cases, increasing the strain on the heart can cause a heart attack, leaving the gym possibly liable.
Just such an event occurred at a Gold's Gym in 2008. A gym member was on the treadmill, working out, when a heart attack struck. Gym staff were unable to resuscitate the man, and the family wound up suing the gym with the claim that a defibrillator located within the gym was non-functional due to dead batteries. Some charges were thrown out during the lawsuit, but the gym ended up settling with the man's family.
Gym fitness insurance protects your health club from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked health club insurance questions:
- What Is Gym And Fitness Insurance?
- How Much Does Gym And Fitness Insurance Cost?
- Why Do Health Clubs, Gyms, And Fitness Centers Need Insurance?
- What Type Of Insurance Do Health Clubs, Gyms, And Fitness Centers Need?
- What Does Gym And Fitness Insurance Cover & Pay For?
What Is Gym And Fitness Insurance?
Gym and fitness insurance is a type of insurance that specifically covers the risks associated with operating a gym or fitness center. This type of insurance is designed to protect gym owners and fitness professionals from financial losses due to accidents or injuries that occur on the premises.
Gym and fitness insurance typically includes coverage for liability, property damage, and medical expenses. Liability coverage is designed to protect the gym or fitness center against claims made by individuals who are injured on the premises. Property damage coverage is intended to cover any damage to the gym or fitness equipment caused by accidents or natural disasters. Medical expenses coverage is intended to cover the cost of medical treatment for individuals who are injured while using the gym or fitness center.
In addition to these basic coverage options, gym and fitness insurance may also include additional coverage options such as personal training coverage, group fitness coverage, and professional liability coverage. Personal training coverage is designed to protect personal trainers from financial losses due to accidents or injuries that occur during training sessions.
Group fitness coverage is intended to protect instructors and participants in group fitness classes from injuries or accidents that occur during class. Professional liability coverage is intended to protect gym owners and fitness professionals from financial losses due to claims of negligence or malpractice.
Overall, gym and fitness insurance is an important consideration for anyone who operates a gym or fitness center. It can provide peace of mind and financial protection in the event of accidents or injuries, and can help gym owners and fitness professionals to continue to provide safe and effective services to their clients.
How Much Does Gym Fitness Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small gyms and fitness businesses ranges from $37 to $69 per month based on location, size, payroll, sales and experience.
Why Do Health Clubs, Gyms, And Fitness Centers Need Insurance?
Gyms and fitness centers are responsible for maintaining a safe and healthy environment for their members and staff. They have to protect against a wide range of risks such as accidents, injuries, and property damage. Gym fitness insurance is necessary to provide protection against these potential risks and to help them recover from unexpected losses.
One major risk for health clubs, gyms and fitness centers is the potential for accidents and injuries to occur on the premises. Whether it is a member tripping over equipment or a staff member getting hurt while setting up a class, accidents can happen at any time. Insurance can provide coverage for medical expenses and liability claims that may arise from these incidents.
Another risk that health clubs, gyms and fitness centers face is property damage. Whether it is a natural disaster or an act of vandalism, property damage can be costly to repair and can cause a significant interruption to operations. Insurance can provide coverage for repairs and replacement of damaged property.
Furthermore, health clubs, gyms and fitness centers also need insurance to protect against liability claims. This can be anything from a member slipping and falling on wet floors to a trainer giving incorrect instructions that lead to an injury. Insurance can provide coverage for the legal costs associated with defending and settling these claims.
In summary, health clubs, gyms and fitness centers need insurance to protect against the potential risks of accidents, injuries, property damage, and liability claims. Without insurance, a gym or fitness center could face financial ruin if something unexpected were to happen. It is important for these businesses to have the right insurance coverage in place to protect against potential losses and ensure their continued operation.
What Type Of Insurance Do Health Clubs, Gyms, And Fitness Centers Need?
Buying gym fitness insurance and maintaining coverage is important to the financial health of your gym business. This type of insurance is a combination of different policies that are important for your particular business.
While the amounts of coverage and types of coverage likely vary based on things such as the size of your center, the services that your center offers, and the number of people working for you, the general types of insurance to look for include:
- General liability coverage. This gym fitness insurance coverage provides protection against lawsuits arising from bodily injuries or property damage for which your business might be held liable.
- Professional liability coverage. Errors and omissions by staff are covered under professional liability coverage. For instance, if a trainer gives a health club member advice regarding a suitable exercise regimen and the person becomes injured as a result, this gym fitness insurance protects your business.
- Product liability insurance. This type of coverage provides you protection from any injuries caused by equipment or other items you sell.
- Employee practice insurance coverage. If your facility ever becomes the target of poor practices accusations, discrimination or sexual harassment charges, then this insurance is a valuable type to have in place.
- Property coverage. This basic type of coverage protects your facilities from loss due to vandalism, severe weather, or fire.
- Equipment coverage. This is typically an endorsement or rider to your policy to cover failure of your equipment.
- Worker's compensation coverage. This coverage protects employees from loss due to work-related illness or injury. It covers medical bills and lost wages.
Other coverage types may be needed by your gym, depending on the individual risks that you are exposed to. Work with a commercial agent to unearth the various risks that put your business at peril and to find the right level and type of gym fitness insurance for your particular needs.
Your agent may recommend supplemental policies such as accidental medical coverage and participant liability coverage for programs that offer martial arts or boxing training. If your gym hosts tournaments or other types of competitive events, you may need additional coverage in place.
Special liabilities may occur if you offer swimming pool access, hot tub or sauna access, day spa services, tanning beds, massage services, or skin care services. Your agent may also recommend an umbrella policy for liability. This type of coverage kicks in to pay beyond the limits of your other insurance policies.
Health Club's Risks & Exposures
Premises liability exposure is high due to the constant traffic of patrons and visitors to the facilities for exercise and recreation. Exercise areas and equipment present challenging hazards to manage, as do any swimming, whirlpool, sauna, or tanning exposures. The facility must provide proper support for the patrons, including staff with appropriate first aid training and supplies, lifeguards for the pool areas, and "spotters" for weight lifting, especially with free weights.
Flooring should be well maintained with nonskid surfaces. Any exercise advice or program developed must be maintained in the client's file. Pools and locker areas must be carefully monitored for slip and fall hazards. Because of the large number of customers served, a significant although easily avoided risk is the transmission of diseases. The absence of simple hygienic practices like hand washing and proper cleaning of surfaces with disinfectants may indicate a morale hazard.
Tanning beds provide a special set of exposures that may need the services of specialty markets as customers may be burned by overexposure to lighting used in the beds. There is unknown loss potential from long-term exposure from the radiation and chances of cancer and related diseases.
Exits must be sufficient in number, well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Courts may deem the security of visitors in parking areas to be the responsibility of the owner or operator of the premises. Factors affecting the risks include the exterior lighting, fencing, and any other security measures in place. Personal injury exposures include assault and invasion of privacy.
Products exposure is moderate if food is prepared or sold. Proper sanitation reduces the possibility of contamination. The exposure increases if the center modifies or directly imports any exercise equipment or sells any products that are non-standard, independently produced, or proprietary.
Workers compensation exposure can be high. Common injuries include back sprains and strains from material handling, equipment maintenance, and from spotting and assisting patrons during exercise. Employees should be trained in proper lifting and catching techniques. Food service workers may be injured by cuts and burns.
Property exposures consist of offices, exercise areas, classroom and meeting space, and locker rooms. Ignition sources include electrical exercise equipment and wiring, heating, air conditioning, cooking if there is food preparation, or the buildup of dust and fumes from the maintenance of basketball or racquetball courts, which may include stripping, sanding, and repainting or varnishing.
The risk of fire increases dramatically in the absence of proper ventilation and adequate disposal procedures. Paints, varnishes, and chemicals used in pools must be adequately separated and stored away from combustibles. All exercise machines must be checked for wear and tear and maintained to prevent fires. Even if smoking is not permitted on premises, customers may dispose of cigarettes improperly, posing a fire hazard.
If there is a snack bar or preparation of nutritional meals, there should be controls and safety devices for cooking equipment. Coolers and freezers should be well maintained with backup systems for power failures.
Equipment breakdown exposures are typically light unless there is large-scale food preparation or storage. If the pumps and compressors in the refrigeration or air-conditioning units break down, there could be significant business income or spoilage loss.
Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees who handle money. Personal information in the client files may pose a risk of computer fraud and identity theft. There should be a separation of duties between persons handling billing, deposits, and disbursements and handling bank statements. Proper cash handling procedures should be in place.
Inland marine exposures are from accounts receivable if the center offers credit, computers, and valuable papers and records for clients' and suppliers' information. There may be a bailees customers exposure if clients leave their personal property in lockers. A special property floater may be needed if any items are taken off site for competitions or demonstrations. Backup duplicates of all important records and software should be kept off site.
Business auto exposure is normally limited to hired and non-owned liability.
What Does Gym And Fitness Insurance Cover & Pay For?
Gym and fitness centers can be sued for a variety of reasons, including:
Personal injury: If a member or visitor is injured on the premises due to negligence on the part of the gym, they may sue for damages. Examples of such injuries include slip and fall accidents, equipment malfunctions, or inadequate supervision by staff.
Breach of contract: Members may sue if the gym breaches its contract with them, such as by failing to provide promised services or charging unauthorized fees.
Discrimination: If the gym discriminates against a member or employee based on factors such as race, gender, or disability, they may be sued for discrimination.
Misrepresentation: If the gym makes false claims about the effectiveness of its products or services, it may be sued for misrepresentation.
To protect themselves against these types of lawsuits, gym and fitness centers can purchase liability insurance. Liability insurance provides coverage for damages that the gym may be legally obligated to pay as a result of a covered claim.
For example, if a member slips and falls on a wet floor and sues the gym for damages, the gym's liability insurance may cover the costs of the lawsuit, including legal fees, settlements, and judgments. Similarly, if a member sues the gym for breach of contract, the gym's liability insurance may cover the costs of defending against the lawsuit and any damages that may be awarded.
In summary, liability insurance can protect gym and fitness centers from the financial impact of lawsuits and other legal claims by covering the costs of defending against them and paying damages if necessary.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7991 Physical Fitness Facilities
- NAICS CODE: 713940 Fitness and Recreational Sports Centers
- Suggested Workers Compensation Code(s): 9063 Health or Exercise Institute & Clerical
Description for 7991: Physical Fitness Facilitiesd
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7991 Physical Fitness Facilities: Establishments primarily engaged in operating reducing and other health clubs, spas, and similar facilities featuring exercise and other active physical fitness conditioning, whether or not on a membership basis. Also included in this industry are establishments providing aerobic dance and exercise classes.
Gym Fitness Insurance - The Bottom Line
A seasoned commercial agent can also help you understand how much gym fitness insurance you need in the first place.
By working with an agent who understands the various nuances involved in running a gym or fitness center, you can be sure that your coverage recommendations are legit and that the agent's recommendations are made based on industry knowledge.
An professional agent can also help you find the best rates by comparing your rates with different companies to find a budget-friendly option for your needs.
Additional Resources For Sports & Fitness Insurance
Learn about small business sports & fitness insurance policies and what they cover so that your customers, employees, and equipment are protected.
- Golf Course & Country Club
- Gym Fitness
- Hole-In-One Insurance
- Ice Skating Rinks
- Martial Arts
- Professional Sports
- Sports Team
- Swim Clubs
- Yoga Teacher
- Specialty Sports And Hobbies
The sports and fitness industry is a high-risk industry that requires insurance to protect businesses and individuals from unexpected accidents and injuries. This is especially important for businesses that offer physical activities or equipment, as they are more likely to face lawsuits if a customer is injured while participating in their services.
Additionally, the sports and fitness industry often involves high-value equipment and facilities that need to be protected from damages caused by natural disasters, vandalism, or theft. Commercial insurance can provide coverage for these types of losses, ensuring that businesses are able to continue operating and providing services to their customers.
Business insurance also plays a critical role in protecting the personal health and safety of those participating in sports and fitness activities. Accidents and injuries can occur at any time, and having the right insurance coverage can provide financial protection for medical expenses, lost wages, and other related costs.
Overall, the sports and fitness industry needs insurance to safeguard businesses and individuals from the risks and challenges that come with providing physical activities and equipment. Without insurance, the industry would be vulnerable to significant financial and legal losses, which could ultimately harm its ability to thrive and grow.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees, Computers, Contractors' Equipment, Golf Carts, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Mobile Equipment, Cyber Liability, Employment-related Practices, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).