Fitness centers offer valuable services as help people reach their fitness goals and become healthier in general. But in some cases, they can be a lawsuit waiting to happen if a member is injured on faulty equipment or an inexperienced instructor gives bad advice. That's why business insurance for fitness centers is a must.
Types of Fitness Center Insurance
Business insurance for fitness centers will consist primarily of liability insurance and property insurance to cover replacement or repair costs for equipment. Some of the fitness center insurance you will need includes:
- General liability. This type of insurance will cover costs if you are sued for medical bills or pain and suffering if a person is injured in your fitness center. It will also cover costs of property damage if one of your employees or machines damages any personal property on the premises.
- Professional liability. This is also known as Errors and Omissions insurance and covers judgments against you as a result of an error on your part or the part of your employees. For example, if a yoga instructor fails to warn those in her class that pregnant women shouldn't participate and a pregnant participant is injured and sues, professional liability covers costs.
- Employment practices liability. Business insurance for fitness centers should also include this type of coverage. It protects you and your fitness center from lawsuits brought on by employees. Wrongful termination, discrimination, and sexual harassment suits all fall under this category.
- Workers compensation. Legally, workers compensation is required if you have a specific number of employees. This will cover medical costs and lost wages for any employees who are injured while on the job.
These basic liability policies will cover defense costs and any settlements or judgments against you. The amount of liability coverage you need depends on the size of your club and other factors, but most within the industry get coverage for $1 million for each occurrence, with a $2 million dollar aggregate, or cap, per policy term.
Other Types of Fitness Center Insurance
Now that you know what you need to cover your employees and your business from lawsuits and settlements, you'll need to cover your building and all your equipment. Business insurance for fitness centers also requires property coverage.
Fitness centers tend to have hundreds of thousands of dollars worth of equipment, as well as the building costs. In addition to repair and replacement costs for the structure itself, your property coverage should include coverage for the following:
- Fitness equipment
- Mirrors, bars, and other devices attached to walls or ceilings
- Computers/sound systems/televisions/security monitors
- Locker rooms including lockers
- Contents of pro shops or cafes on site
Finding Affordable Fitness Center Insurance
Fitness center insurance costs vary, so in order to get the best deal it's important to shop around and compare quotes from a variety of carriers who specialize in fitness center insurance. Netquote.com is a great resource for this, allowing you to find multiple quotes in a matter of minutes for free.
See how much you could save today on your insurance. Get your free business insurance quotes today!