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:
- What Is Recreation Center Insurance?
- How Much Does Recreation Center Insurance Cost?
- Why Do Recreation Centers Need Insurance?
- What Type Of Insurance Do Recreation Centers Need?
- What Does Recreation Center Insurance Cover & Pay For?
What Is Recreation Center Insurance?
Recreation center insurance is a type of insurance policy designed to protect the owners and operators of recreational facilities against potential losses and liabilities that can arise from the operation of these centers.
This insurance policy can cover a wide range of incidents, such as accidents, injuries, and damage to the property, equipment, or facilities. Some of the most common types of recreational facilities that may require this insurance include community centers, parks, sports arenas, and gyms.
This insurance can provide coverage for medical expenses, liability claims, and other costs associated with accidents or incidents that occur within the recreation center.
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.
What Does Recreation Center Insurance Cover & Pay For?
Recreation centers may be sued for a variety of reasons, including:
Personal injury: If someone is injured while using the facilities or equipment at a recreation center, they may sue for damages. If someone is injured at a recreation center and sues for damages, the center's liability insurance can help cover the costs of legal defense and any settlement or judgment amounts.
Negligence: If the recreation center fails to maintain its facilities or equipment, or if it fails to adequately supervise its patrons, it may be sued for negligence. If a recreation center is sued for negligence, its liability insurance can help cover the costs of legal defense and any settlement or judgment amounts. Additionally, the center may also have an errors and omissions policy that can help cover the costs of any professional liability claims related to the center's operations.
Discrimination: If the recreation center engages in discriminatory practices, such as refusing to admit certain patrons or treating them differently than others, it may be sued for discrimination. If a recreation center is sued for discrimination, its liability insurance can help cover the costs of legal defense and any settlement or judgment amounts. Additionally, the center may also have an employment practices liability policy that can help cover the costs of any claims related to employment practices, such as discrimination.
Property damage: If a patron's property is damaged while at the recreation center, such as their car being broken into in the parking lot, they may sue for damages. If a patron's property is damaged while at a recreation center, the center's property insurance can help cover the costs of repairing or replacing the damaged property.
In summary, insurance can help protect recreation centers from the financial risks associated with lawsuits by providing coverage for legal defense costs, settlement or judgment amounts, and other related expenses.
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 Workers Compensation Code(s): 9015 Building or Property Management - All Other Employees, 9016 Amusement Park or Exhibition Operation & Drivers
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.
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
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
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.