The fitness business is prone to many industry-specific risks. For instance, in 2019 alone, 468,315 people ended up in the emergency department due to injuries relating to exercise and exercise equipment, according to the National Safety Council( NSC). However, third-party injuries are not the only possible source of liabilities in the fitness industry. For instance, if you provide one-on-one fitness services, someone could sue you for sexual misconduct. To protect yourself and your business, you should carry the right insurance coverage. Read below for more information on this topic.
Who Needs Gym Insurance?
If you run fitness centers and gyms, dance studios and dance schools, tennis centers, racquet clubs, yoga studios, pilates studios, fitness management firms, martial art studios, 24-hour clubs, sports and recreational facilities, or if you offer personal or group fitness training you need gym insurance to protect your business against possible liabilities. Insurance for gyms generally offers the following types of coverages:
- General Liability – General liability coverage covers property damage and physical injuries that emanate from your general operations. It also covers advertising injuries and damage to leased premises.
- Workers’ Compensation – Worker’s compensation covers workplace injury, illness, or death. It pays for medical care, vocational rehabilitation, and lost wages. Additionally, if an employee dies due to a workplace injury workers’ comp pays survivor benefits. Workers’ comp requirements vary from state to state, so be sure you understand and comply with your state’s requirements.
- Professional Liability – Professional liability/ E&O (errors and omissions) coverage, pays your legal costs in case you or any of your employees is accused of falling short of professional standards, negligence, or making errors while delivering professional services. For instance, a client may sue you for getting him started on an exercise regimen without assessing their fitness level. This coverage provides protection from liabilities related to professional services, and thus it varies from general liability, which covers property damage and injuries that can occur in any business. If you provide one-on-one training services, you should consider getting a professional liability policy that also covers abuse and molestation.
- Medical Payments Coverage – Medical payments coverage offers protection for medical care costs of injured clients regardless of who is at fault. This coverage is vital for gym owners because it ensures that minor injuries are treated immediately and thus are less likely to lead to major claims.
Additional Gym Insurance Coverages
Product Liability for Gyms
If part of your fitness business is selling products like workout clothes, supplements, or fitness equipment, you may be sued if your goods cause harm to consumers. Product liability protects you against the liabilities relating to your products. Your general liability policy may provide adequate coverage to your retail operations, but if selling goods is central to your business, you should consider getting a separate product liability policy.
Event Insurance for Fitness Centers
Event insurance coverage can be a rider attached to your existing policy or it can be a separate policy. It protects your business when you host a big event that draws more people into your establishment and thus increases your risks. For instance, if you host a weight lifting competition you’ll likely have more people in your establishment than you would under normal circumstances, and some of them may be injured as they compete in your event. Event insurance protects you against liabilities relating to those injuries.
If you’re looking for affordable gym insurance in Ventura, CA that’s customized for your fitness facility, contact our experts at John E. Peakes Insurance. Our team will help you get a gym insurance policy that aligns with the size of your facility, your revenue, and the services you offer.