What Insurance Coverage do Gyms Need?
Gyms need insurance coverage, just like any other business. But there are many needs to cover. We’re looking at five insurance policies gyms need to have in place to ensure protection for their business and their guests.
The technology fitness boutique, Peloton Interactive Inc. has recently faced several claims from users of their Tread and Tread+ treadmills. The reason behind these reported claims was that screws attaching the touch screens to the rest of the machine came loose and caused the screens to fall off the treadmill. This has resulted in injuries for some users.
Peloton has moved forward with repairs to the recalled products to meet the standards of U.S. Regulators and the Consumer Product Safety Commission (CPSC) recommendations. According to Claims Journal, this malfunction of fitness equipment starts a debate about gym injuries and the type of insurance policies that cover clients when exercising.
In this scenario, Gym Insurance comes to the rescue with coverage to avoid these types of claims that affect the sports business.
What is Gym Insurance?
Progressive Commercial Insurance, a New York company specializing in commercial insurance, defines gym insurance as a “business insurance written to fulfill the specific coverage needs of gym owners.” This definition involves the combined use of different policies, including:
- General Liability Insurance.
- Commercial Property Insurance.
- Workers’ Compensation Insurance.
- Professional Liability Insurance.
- Medical Payments Insurance.
In conclusion, these unique Gym Insurance Policies do an excellent job of covering gyms from potential risks ensuring they have the right coverage. The most common risks this policy covers are:
- Non-employee property damage or claims of injury.
- Advertising injury.
- Cost of repair or replacement of business-owned property, like equipment.
- Lost wages, and medical bills for injured employees.
- Legal costs for negligence claims.
- Medical payments for injured customers.
All these risks are easily covered under a normal Gym Insurance Policy. To help you choose the correct types of coverage you will need and understand the risks the policy covers, here you have the five must-have types of insurance to protect your gym.
1. General Liability Coverage
A gym’s General Liability Insurance provides coverage for any accidents that occur as part of regular business functions. For example, if a client is walking through a fitness center and trips and falls because of a dumbbell on the floor, the coverage will pay for damages.
Also, for gyms that are active on social media, general liability coverage is especially important. Advertising injury and other claims of false advertising, defamation, or online harassment are often covered by these policies.
2. Commercial Property Insurance
This is the most important coverage for gyms. The cost to repair or replace broken exercise equipment can be expensive, so it is a good practice to have a policy to rely on.
This not only covers gym equipment but also buildings and other tools used to run the business. For example, if there is a tornado and the computers are destroyed, this coverage will kick in so the policyholder can buy new ones. Commercial property insurance will also cover damage caused by weather and natural disasters, fire, theft, or vandalism.
3. Workers’ Compensation
Workers’ Compensation Insurance is must-have insurance for any business that has employees. It pays for medical expenses, lost wages, rehabilitation, and survivor benefits for those who are injured while working.
Workers’ compensation requirements vary by state, but as soon as a business has one employee, this coverage is necessary.
4. Professional Liability Insurance
Professional Liability Insurance pays for any legal expenses related to claims of negligence involving owners or employees. For example, in a gym that offers personal training, this coverage will pay for a lawsuit in the case of a client that claims they were injured because of something their trainer told them to do. This insurance coverage will kick in for the legal costs associated.
5. Medical Payments Insurance
In every gym, when there is an injury, medical crews must act fast. Medical payments insurance pays for the immediate doctor or dental bills when somebody is injured on the property. For example, if a client wants payment for a minor injury, this coverage will cover the cost avoiding a potential larger lawsuit.
Assuring Coverage is in Place
As you can see, there are a lot of different insurance policies in place to make sure a gym is fully protected from claims. After identifying the ones you will need, the second step is to keep track of each of these policies’ deadlines and third parties’ coverage. As a gym owner, you should keep your mind in the business and put these administrative tasks in the right hands.
At SmartCompliance we offer a full-service solution to track and monitor certificates of insurance (COIs). Schedule a free demo to learn how our software erases the burden of manually checking insurance policies.