Watch out for these risks that come along with owning your own fitness center.
Unfortunately, risk is part of owning your own fitness center. Even the best run gyms are vulnerable due to the nature of their business. Luckily, understanding your risks can help you avoid them. Here are some of the risks that gym-owners need to be wary of.
- Disaster-Related Losses
As 60% of businesses are underinsured, it’s no surprise that the same percentage of businesses never open after getting hit by a natural disaster. If you do not have adequate insurance coverage, the financial losses stemming from a natural disaster could spell the end for your business. This is why all fitness centers need to make sure that they have a business continuity plan and the right insurance protections in place.
Injuries, particularly treadmill injuries, are the number one risk that fitness centers face. With the average cost of a treadmill injury around $250,000, this risk is not something that gym owners can afford to overlook. To mitigate this risk, you should train your staff on how to intervene when gym-goers are demonstrating risky treadmill behaviors. Additionally, you should make sure that your staff knows what to do if an injury takes place. Whenever an incident involving gym equipment takes place, investigate and document it immediately and make sure you take action so the same issue does not occur in the future.
- Liability Issues
Personal trainers have been sued for liability issues such as sexual harassment and personal injury. When personal trainers are sued, the lawsuit also affects the club or gym that they work at, as owners can be held liable for their trainers’ behavior. Because contracted personal trainers and fitness instructors are not automatically covered under the gym owner’s liability policy, you should make sure that your policy includes coverage for “additional insureds,” such as instructors, trainers, and members.
These are some of the hidden risks that come along with owning your own gym. Looking for the right insurance coverages to safeguard your fitness center? Then contact the experts at John E. Peakes Insurance Agency. Our dedicated team is eager to assist you with all your coverage needs.