Have a question? In this article, I’ll explain gym insurance, why you need it, and how to get it for your practice.
You’ll also learn the following:
- What gym insurance covers and doesn’t cover
- Gym Insurance cost
- much more
At the end of the article, you should be able to decide on the best option.
Without any delay, let’s move into it.
Introduction
Thinking about opening a gym or personal training studio?
Got one already?
Get insured!
Here is your guide to ensuring all your gym insurance needs are covered.
I also highly recommend that you take the quiz and find out which personal trainer certification is best for your career goals.
Why do I need gym insurance?
Fitness facility insurance is one of those things you should have but also hope you never need.
Think of it as a safety net.
It’s not exactly the most exciting part of operating a gym business, but in many ways, it’s more critical than the treadmills and barbells in your facility.
If you own and operate a gym, it goes without saying that you should be appropriately qualified.
You know how to train and treat your clients so that their workouts are safe and enjoyable.
Unfortunately, accidents still happen, and things that aren’t even your fault can go wrong.
Having the right type of gym insurance means you are protected from these scenarios.
You could cross your fingers and hope for the best, but not having gym liability insurance puts you in a precarious financial position.
You could face a huge bill if something goes wrong at your gym.
How much? Potentially millions of dollars!
At the risk of making you feel paranoid about several potential hazards and risks involved with going to the gym.
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These are the things that could happen at your new facility and why you need insurance.
- Trips and falls – clients could fall over a piece of gym equipment, bump into another user, or slip in the shower.
- Minor and major injuries – from ankle sprains to spinal injuries resulting in permanent disability.
- Minor and major health issues – from catching the flu from a contaminated bench to a heart attack during a workout.
- Claims against trainers – disgruntled clients could accuse you of not providing the services that they have paid for.
For example, they could hold you responsible if you lose weight. - Damaged or stolen equipment – insurance means your property is protected from theft and damage by fire or flooding.
- Gym closure – some policies cover your gym in the case of forced closure, such as the recent COVID-19 outbreak or as a result of fire or water damage.
What does gym insurance cover?
Like gyms, personal trainers, and PT clients, gym insurance comes in various shapes and sizes.
The cost and coverage of gym insurance vary from policy to policy.
That said, gym business insurance typically provides three main types of coverage:
- Business and property insurance
- General liability insurance
- Professional liability insurance
Business insurance covers your property and assets, while liability insurance covers you, your staff, and the business from third-party claims and lawsuits.
While the exact coverage varies, most gym insurance policies cover the following:
Business and property – this covers your building and its contents from fire, theft, and natural disasters.
Most landlords will insist you have building coverage if you rent a space.
Banks often require property insurance for loans for business premises.
If you have bought your building, you should have this insurance to protect your investment.
Business and property insurance covers your gym and office equipment too.
General liability – general liability insurance covers your clients so that you are financially protected if they have an accident and then make a claim against you.
This includes third-party medical expenses.
Professional liability – this covers the services that you and your staff provide.
It protects you from clients who might say you didn’t provide them with the correct advice, as well as any accidents resulting from the services you offer.
For example, this coverage protects the instructor if a client hurts themselves during a group exercise class.
Some policies also offer additional types of cover:
Cyber insurance – this protects you from data breaches and information theft.
If you store things like client credit card details or personal information electronically, a hacker could break into your system and steal this valuable data.
Cyber insurance will protect you from liability.
Equipment breakdown cover – while equipment breakdowns may be covered in your business and property insurance, they might not be.
Read the small print; if equipment breakdown is not included, you may want to add this type of cover to your insurance.
Equipment breakdown cover means that anything that goes wrong, from treadmills to a refrigerated snack vending machine, will be repaired or replaced if it is outside the manufacturer’s warranty.
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Medical payments coverage – medical expenses are covered under general liability insurance, but only up to a pre-set limit.
Medical payment coverage is a standalone policy covering larger medical bills or lawsuits.
Workers’ compensation – not just clients that can have accidents at a gym; the instructors can too.
Workers’ comp covers medical costs and lost wages and provides survivor benefits should an employee die due to an injury at work.
Workers’ compensation is a legal requirement in many states.
Off-site coverage – is a useful add-on if you train or treat clients in their homes, conduct outdoor workouts, or even give training advice outside your gym.
Depending on the policy, it may also cover you for journeys to and from work.
What gym insurance doesn’t cover
Once you have your fitness liability insurance, you could be forgiven for thinking you are protected from everything that can go wrong at your gym.
However, a few things aren’t usually covered by the policies we’ve discussed so far.
Common exclusions to gym insurance include:
Additional services – if you offer massage, acupuncture, beauty treatments, or any additional non-gym services, you will need additional coverage.
This is especially important if you rent space to other vendors.
You’ll also need additional coverage if you offer martial arts classes, swimming lessons, or other non-standard gym services.
Underage exercisers – most gym insurance policies do not cover minors under 18. Bear that in mind if you offer workouts for kids.
There are specialist policies for gyms and trainers qualified to work with those under 18s.
Supplement and product sales – problems directly resulting from supplements or equipment you have sold are not usually covered by gym insurance.
For example, if a client is allergic to a nutritional product, you sell them.
False guarantees and statements – your insurance won’t cover you for false promises.
If you guarantee a client that they’ll lose 50 pounds in four weeks, they could sue you if they don’t.
Avoid this problem by never making specific promises.
Workout outside the scope of your qualifications – make sure you do not exceed your professional competencies.
For example, if you aren’t qualified to work with pre or post-natal women, doing so will invalidate your insurance.
Stick with what you are qualified to do.
How much does gym insurance cost?
While we’d love to be able to give you an exact price for your gym insurance, we can’t.
The cost of gym insurance depends on a whole host of factors, including:
- Size – bigger facilities usually cost more to insure
- Location
- Nature of the business
- Number of clients – more clients mean more risk
- Number of employees
If you have a small gym or fitness studio, you can expect your gym insurance to cost between $2000-$5000 per annum.
Policies for larger fitness facilities can exceed $10,000.
While gym insurance is expensive, it protects you from liabilities that cost millions.
Given the cost-to-benefit ratio, the right insurance policy is the most important thing you must buy for your gym.
Where to get a gym insurance quote
While you could get an online gym insurance quote, the best place to obtain liability insurance for gyms is from an independent insurance company or agent.
Why independent?
Because they aren’t tied to just one company or product and will be able to shop around on your behalf to find the best gym insurance prices.
An independent broker will ensure you get the coverage you need at the best possible rate, potentially saving you hundreds or even thousands of dollars.
Having an expert in your corner will also save you from having to wade through lots of complicated insurance details that are quite as boring as hell!
They’ll make finding the right policy much more straightforward, less labor-intensive, and potentially cheaper.
Your independent insurance agent will need the following information to get the best coverage for the best price.
- Business Location
- Services offered include specialist services, product sales, etc.
- Owner information and experience
- Past and projected turnover
- Number of employees and annual payroll
- Tools and equipment valued over $1,000
- Age of building
- Square footage
- Building construction type
- Building safety features
- Details of any previous policies or claims over the past five years
Gather all this information before contacting an insurance agent to save both parties time and effort.
Wrapping up
No one likes talking about insurance, yet it’s crucial to running a gym or personal training studio.
Operating without insurance is like walking across the Grand Canyon on a tightrope without a safety harness.
Everything might work out alright, but the consequences will be dire if it doesn’t!
In many states, operating a gym without the right insurance is illegal.
Starting a new gym can be expensive, so ensure you protect your investment and future livelihood with the right gym insurance.
References
- “Insurance for NASM-Certified Professionals and Associates.” National Academy of Sports Medicine (NASM), https://www.nasm.org/resources/insurance.
- “Introduction to the Workers’ Compensation Law.” New York State Workers’ Compensation Board, http://www.wcb.ny.gov/content/main/onthejob/WCLawIntro.jsp.
- “Oh Baby! Fitness Pregnancy and Postpartum Exercise Instructor Training.” American Council on Exercise (ACE), https://www.acefitness.org/education-and-resources/professional/continuing-education/course/4a5wy8w6x/.
- “Best Business Liability Insurance.” Business.com, https://www.business.com/categories/best-business-liability-insurance/.
Tyler Read
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