8 Types of Gym Insurance Policies to Protect Your Fitness Business

Jul 21, 2021

Gym Insurance

8 Types of Gym Insurance Policies to Protect Your Fitness Business

Gym business insurance comprises multiple policies that cover fitness businesses against liabilities, property damage, and other forms of financial loss. Liabilities may arise from issues like injury lawsuits brought by clients and professional mistakes by your employees. As with any other business, your gym also needs protection against financial loss due to the theft or loss of gym business equipment.

While gym insurance needs vary, here is a look at 8 gym insurance policies you should consider getting for your fitness business.

  1. General Liability

    If any gym member is injured while exercising at your facility, they might sue you for medical costs and other losses. General liability insurance covers such costs. The goal of having the policy is protection from financial loss in the event of property damage, personal injury, advertising injuries, and slander/libel, for which you are held liable.

  2. Cyber Insurance

    If you are storing or handling gym members' payment or personal data, you need to consider getting cyber insurance. This policy can protect you if a data breach on your facility’s systems results in the theft or exposure of sensitive client information. Fraudulent use of a member's credit card information after a hacking incident is also covered.

  3. Business Interruption

    If a covered event like fire or storm damage forced you to close your gym temporarily, you would incur income losses during that period. This policy can compensate you for the loss, enabling you to resume operations quickly.

  4. Medical Payments

    Most general liability policies usually include third-party medical payments coverage. However, you may also obtain the cover separately. The policy can pay for the medical bills incurred by gym members injured while using your services, such as lifting weights, or in trip and fall accidents.

  5. Business Equipment

    Fitness equipment, such as high-end treadmills, is expensive to replace if stolen or damaged. You can buy a separate business equipment policy to cover the expensive machines against theft or damage. Be sure to include all equipment in this coverage, including items utilized in outdoor personal training programs. Having this coverage can eliminate or minimize business interruption due to damaged or stolen gym equipment.

  6. Commercial Property

    This gym insurance policy covers a facility's building and its contents, including fitness equipment. If you lost any of your physical business assets in an event like fire or storm, the cover would pay for their replacement. It would also cover losses due to the theft of gym equipment.

  7. Workers’ Compensation

    Specific workers' compensation insurance requirements vary by state. Even so, it is important that you obtain this protection for your gym employees. If they are injured while working with your clients, they’ll need funds to cover medical bills, lost wages, and other losses. This policy covers these expenses due to on-the-job injuries.

  8. Professional Liability

    It is critical to have professional liability or errors & omissions coverage if you are a gym operator. The policy pays for compensatory damages or settlements after you or an employee is accused of causing injury to a client by professional negligence. Coverage includes legal defense fees whether you are liable or not.

    For example, a gym user may get injured after a strength training mistake attributable to the lack of proper/accurate instructions from their trainer. They could sue your company for this.

These are the fundamental gym insurance policies you may need to avoid financial loss from liability lawsuits, property losses/damage, and other risks. If you need help creating a customized cover for your fitness business, contact the team at John E. Peakes Insurance. We are happy to look into your unique insurance requirements and help protect your business.