1.    What insurance coverage must my health club keep?

• General Liability 
• Commercial Property
• Professional Liability
• Workers’ Comp

2.    Do these policies cover every event on property?

No! There are many exclusions, and optional coverages may be needed to fully insure your gym. For instance, problems caused by tanning beds, club events, independent contractors, or within onsite businesses may not be covered under every general liability policy. As your fitness club grows, consult with an insurance advisor first before adding such services as childcare facilities, or undertaking breakout expansions including healthcare services.

3.    What’s one problem gym owners assume is covered by general liability, but is not?

Cyber intrusions – if you’re collecting and/or holding credit card numbers through a gym management software system or another method, consider adding cyber liability to protect your business from hackers. 

4.    How much can I expect to pay for gym insurance?

For smaller studios and health clubs, the lease holder and your business model generally drive the cost of insurance. The lessor will tell you the size and amount of coverage needed based on expected capacity, revenue, and number of employees, among other factors. 

5.    How has the pandemic affected commercial gym insurance?

Insurance is still available for the health club industry, but there are fewer insurance options and fewer carriers writing coverage. Gyms may be making less money right now  –  which usually lowers premiums — but their property is still at risk, so those costs are rising. The insurance industry says they’ve been left reeling from recent catastrophic natural disasters and the worldwide pandemic has made it even more difficult to cover businesses, all of which leads to higher costs.

6.    So, how do I pick the right insurance company for my fitness club?

We consulted with Jennifer Urmston Lowe, national accounts manager for Sports & Fitness Insurance Company, to answer that question. Here’s what she suggests: Choose an insurance company that has been writing health and fitness policies for a long time and is invested in the industry. “You don’t want a carrier who will stop writing a whole class of business,” she explains. When a carrier hits hard times, they will retract the business in which they have the least experience. Or, conversely, if they have very little experience, a couple of big claims might scare them off. 

 Ask, does this insurance company have …?

1. Specialized divisions tailored for fitness categories
2. Consistent pricing
3. Experience in writing these types of claims
4. Multiple years’ experience in the health club/fitness industry

The following insurance companies offer specialized health club coverage, however, Gym Insight does not endorse or recommend them. They’re simply listed to save you a little time:

• Sports & Fitness Insurance Corporation
• K&K Insurance
• Markel Corporation
• Philadelphia Insurance Companies

Gym Insight 

At Gym Insight, our gym management software provides a clear, transparent picture into your company’s financials, and offers a platform from which to run your business effectively. Our software is built in-house, by fitness club owners. There are no cumbersome third-party plug-ins or complicated protocols, and it’s available for a single, low monthly subscription price — no hidden fees, no links to your payment processor. Call us today for a free demonstration on how we can lower your software management costs and free up more of your time and capital!