Recreation Center Insurance Policy Information
Recreation Center Insurance. Recreation centers, often simply referred to as "rec centers", provide invaluable services that benefit the whole community - ranging from sports activities to after-school programs, and from social groups for older adults to vocational training.
Recreation centers may be run by local government or non-profit entities, while others can be commercial ventures.
Recreation centers offer a wide range of activities. These may include craft, vocational or educational training classes and services, counseling and professional services, athletic facilities such as gyms, swimming pools, tennis or racquetball courts, or weightlifting rooms.
Some offer lodging or boarding facilities. Some serve the entire community while others target their service to specific groups, such as children or senior citizens. The center may serve concessions or provide locker rooms for members or guests.
There may be 24-hour exposures such as midnight basketball or "lock-ins" for children or youth. The center may be publicly or privately funded.
Although there is no question that recreation centers play an essential role within their respective communities, they are also vulnerable to a wide spectrum of hazards.
Circumstances beyond your control could leave your rec center with insurmountable financial burdens, unless the recreation center has comprehensive insurance on its side.
What kinds of recreation center insurance policies might be needed to ensure that they can continue to serve the needs of their communities, even if disaster were to strike? To find out more, read on.
Recreation center insurance protects your community facility from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked recreation center insurance questions:
- How Much Does Recreation Center Insurance Cost?
- Why Do Recreation Centers Need Insurance?
- What Type Of Insurance Do Recreation Centers Need?
How Much Does Recreation Center Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small rec centers ranges from $67 to $99 per month based on location, size, activities offered, revenue, claims history and more.
Why Do Recreation Centers Need Insurance?
Recreation centers can, like any other organization, fall victim to any number of perils - universal risks as well as those specific to your field could threaten the future of your rec center, unless you have taken proactive steps to protect yourself.
Investing in advanced security systems and adhering strictly to health and safety protocols are two examples of measures that render your recreation center safer, but obtaining excellent insurance coverage is another vital step.
If your facility is impacted by an act of nature, such as a wildfire, hurricane, or lightning strike, being properly insured means the recreation center will not have to pay for the resulting repair and replacement costs on its own.
If you fall victim to burglary or an act of vandalism, the right insurance will help you cover the expenses that result. Insurance can help with liability costs, as well. If an employee, vendor, donor, or member of the public is injured on your premises, or the activities of your center cause damage to a neighboring property, the expenses that follow - including those associated with lawsuits - will be covered if you made smart insurance choices.
These operations need recreation center insurance, in short, because it is impossible to predict when you will be hit by a major, and potentially ruinous, peril - but if you are properly prepared, you can rest assured that such risks do not have to mean the end of your rec center.
What Type Of Insurance Do Recreation Centers Need?
Depending on the jurisdiction within which your recreation center is based, certain types of coverage will be mandated, while others are going to be optional.
Factors as varied as your number of employees, the types of activities your rec center facilitates, the size of your building, and even the materials from which it was constructed, all impact your insurance needs.
The nature of your organization, that is, whether you are a commercial venture, a municipally-run center, or a non-profit, also influences what kinds of recreation center insurance coverage will best protect you. An insurance broker who is deeply familiar with your field will be able assist you in choosing the right options for your recreation center.
Having said that, recreation centers should unquestionably carry the following types of insurance:
- Commercial Property - This type of insurance covers a significant portion of any costs associated with property damage or loss in the event that your facility falls victim to an act of nature, theft, or act of vandalism. Your building and any assets inside, such as HVAC units, furniture, and computers, all fall under property insurance.
- General Liability - Should your recreation center be sued by a third party who was injured on your premises or as the result of your actions or negligence, this form of recreation center insurance covers your legal costs. It further protects you in case your recreation center causes damage to property belonging to someone else.
- Workers Compensation - If an employee sustains a work-related injury, workers' comp pays for any medical bills they incur. In addition, it covers any income they lose while they recover from the injury.
- Crime - This type of insurance guards you against the financial fallout of certain crimes not covered by property insurance, typically including forgery and theft committed by employees.
While these types of recreation center insurance coverage will go a long way toward protecting your facility from financial losses associated with major perils, you may have further requirements. Because of this, it is essential to consult a skilled commercial insurance broker, who can answer all your individual questions.
Recreation Center's Risks & Exposures
Premises liability exposure is high due to the large numbers of visitors on premises and the types of activities conducted. Public and life safety code compliance is very important. Good housekeeping is critical to preventing trips, slips, and falls. Adequate lighting, marked exits, and egress are mandatory. Steps must have handrails, be well-lit, marked, and with good maintenance and repair. Parking areas should be maintained free of snow and ice.
Gym and athletic equipment must be properly maintained and documented. 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 weightlifting, especially with free weights.
Flooring should be well maintained with nonskid surfaces. Because of the considerable 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.
Swimming pools should be fenced, with a self-closing gate and have clearly marked water depths. Pool rules should be prominently displayed with life saving equipment accessible at all times.
Criminal background checks should be conducted for any employee supervising children, youth, or other vulnerable guests. Playground equipment must be properly maintained and documented. Security at the facility, as well as in the building, corridors, and any owned parking area, needs to be carefully checked and reviewed.
The center may present an attractive nuisance hazard after hours. There must be adequate security to prevent unauthorized entry.
Personal injury exposures include assault, discrimination, defamation of character, false arrest, invasion of privacy, or unlawful detention. Some centers operate almost exclusively through volunteer help with few employees.
These volunteers should be subject to the same types of background checks as employees and receive adequate training and supervision.
Workers compensation exposure can be high. Common injuries include slips and falls, 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. Janitorial staff can slip and fall or incur contact dermatitis, lung, and respiratory illness from working with cleaning supplies.
Property exposure includes offices, exercise areas, classroom and meeting space, and locker rooms. Ignition sources include electrical wiring, heating, and air conditioning systems, 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 revarnishing.
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. Electrical wiring must be well maintained and circuit breakers and/or fuses set in such a way that they cannot be overridden.
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 cooking, the kitchen must be set up with appropriate controls and all cooking done in the oven or under hoods. Fire extinguishers must be conveniently placed. Housekeeping must be excellent with regular trash pickup.
The center may be a target for vandalism and theft when not in use. If occupancy is seasonal, daily visits must be made to check on its condition. Business income loss potential may be high after a direct damage loss due to the unavailability of backup facilities.
Crime exposure comes from employee dishonesty and theft of money and securities as cash may be collected for activities. Background checks should be conducted on all employees who handle money. All monies should be double counted and balanced with cashier balance sheets. All cashiers must be held accountable for shortages.
Money should be stripped regularly from cashiers' drawers in order to keep a minimum on the field. There should be a separation of duties between persons handling billing, deposits, and disbursements and handling bank statements. Regular deposits must be made and no money should be kept on premises overnight.
Inland marine exposures include accounts receivable if the center bills for services, audio-visual equipment, computers, and valuable papers and records for clients' and suppliers' information. Values can be high due to the wide variety of equipment for sound, lighting, computers, sports/athletics, or other office and electronics equipment.
These items should be secured after hours to prevent theft. Owned equipment used or taken off premises may be stolen or damaged during transit. If the center assumes responsibility for the equipment or other property of members or guests while on the premises, bailees customers coverage should be considered. Backup duplicates of all important records and software should be kept off site.
Business auto exposure is generally limited to hired non-owned for employees or volunteers running errands. If transportation is provided for employees, officials, guests, and visitors, the exposure increases.
All drivers must be properly licensed and have acceptable MVRs. If there are owned vehicles, they must be maintained on a regular basis with all service documented.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7991 Physical Fitness Facilities, 7997 Membership Sports And Recreation Clubs
- NAICS CODE: 713940 Fitness and Recreational Sports Centers
- Suggested ISO General Liability Code(s): 16670, 61665, 41678, 44311, 44315, 49890, 49891
- Suggested Workers Compensation Code(s): 9015, 9016
Description for 7991: Physical Fitness Facilities
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. Sports and recreation clubs are classified in Industry 7997 if operated on a membership basis, and in Industries 7992 or 7999 if open to the general public.
- Physical fitness facilities
Description for 7997: Membership Sports And Recreation Clubs
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7997 Membership Sports And Recreation Clubs: Sports and recreation clubs which are restricted to use by members and their guests. Country, golf, tennis, yacht, and amateur sports and recreation clubs are included in this industry. Physical fitness facilities are classified in Industry 7991.
- Aviation clubs, membership
- Baseball clubs except professional and semiprofessional
- Bathing beaches, membership
- Beach clubs, membership
- Boating clubs, membership
- Bowling leagues or teams, except professional and semiprofessional
- Bridge clubs, membership
- Club, membership: sports and recreation, except physical fitness
- Country clubs, membership
- Flying fields maintained by aviation club
- Football club, except professional and semiprofessional
- Golf clubs, membership
- Gun clubs, membership
- Handball clubs, membership
- Hockey clubs, except professional and semiprofessional
- Hunt clubs, membership
- Racquetball clubs, membership
- Recreation and sports club, membership: except physical fitness
- Riding clubs, membership
- Shooting clubs, membership
- Soccer clubs, except professional and semiprofessional
- Sports and recreation clubs, membership: except physical fitness
- Swimming clubs, membership
- Tennis clubs, membership
- Yacht clubs, membership
Recreation Center Insurance - The Bottom Line
To learn more about the specific types of recreation center insurance policies you'll need and how much coverage will cost, consult with a broker that is experienced in commercial insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.