Gym Insurance Policy Factors: What You Need to Know

By Sean Ryan

dumbbells on a rack

As a gym owner, you are exposed to more risk than many other businesses due to the nature of the services you offer. You may not realize the dangers your gym poses just by its operation, but the risks are real. Under your roof, people engage in strenuous activity with high-intensity workouts, operating intricate equipment, lifting heavy weights and more. In fact, according to the CDC, injuries sustained during sports and recreational activities account for 2.7 million annual emergency department visits. Given your extensive risk exposure, what type of insurance is best for your business? Today, we will help you understand the types of gym insurance you should be considering.

What Kind of Insurance Policy Does a Gym Owner Need?

Business property insurance

With facilities that include such costly equipment as elliptical machines, free weights, treadmills, stationary bikes and more, property insurance is a must-have. A typical policy will provide the replacement cost value for your building and assets (the necessary cost to rebuild), as well as the replacement cost value for your business personal property. Note that business property insurance only covers damage caused by external sources, such as fire, theft or vandalism.

Equipment breakdown insurance

A form of additional coverage, equipment breakdown insurance goes above and beyond your commercial property insurance policy to cover the cost of repairs or loss of income from damage caused by an internal issue. Equipment breakdown insurance also covers the loss of perishable goods, data restoration and even the cleanup of hazardous substances released in a covered loss.

Business interruption/business income insurance

Any incident on your property could temporarily shut your business down, disrupting your income and your ability to pay your employees. With business interruption insurance (also known as business income insurance), you can minimize the effects of this setback. Business interruption insurance typically covers profits that would have been earned based on previous financial records and operating expenses that still need to be paid while your business is not operating, such as utilities, due to a covered loss.

General liability insurance

Any time a customer steps foot onto your property, something could potentially go wrong—from a common slip or fall to bodily injury and property damage claims that result from instruction or training at your gym and fitness center. Should someone become injured at your place of business, general liability insurance covers medical costs and legal fees associated with their claim. Similarly, if someone’s property is damaged because of something you or one of your employees did, general liability insurance can also cover the cost of repairs or replacements. A separate liability policy can also cover employment practice-related issues, such as wrongful termination suits and claims of discrimination, harassment, and retaliation, as well as professional liability that protects you against claims of negligence, misrepresentation, errors and omissions related to your profession.

Workers compensation insurance

Workers compensation insurance covers claims associated with on-the-job employee injuries, such as sprains and strains from working with exercise equipment, injuries sustained by a personal trainer who’s spotting and assisting patrons during exercise, food service workers who are injured by cuts or burns or even injuries that develop over time, such as carpal tunnel syndrome. This coverage pays benefits to workers injured on the job, including medical costs, a portion of lost wages and permanent disability. However, it does not cover employee injuries unrelated to their job duties or those that occur outside of the workplace. It also does not cover injuries sustained while commuting to and from work or those caused by intoxication or substance abuse.


What Does Gym Insurance Cost?

Many factors contribute to the cost of gym insurance, including:

  • The size of your gym
  • Location
  • Number of trainers
  • Services offered
  • Revenue/Payroll
  • Number of members

While insuring a gym is more expensive than insuring your average business, remember that your risk exposure is also much higher. A single lawsuit with extensive medical bills can be financially devastating to your business.

What is Covered in a Gym Insurance Policy?

A gym insurance policy generally includes a combination of several types of coverage, as noted above. At Hanson & Ryan, we will work with you to determine the best types of coverage to address your gym’s specific risk exposure at the most competitive prices.

Your Gym Insurance Policy Experts in NJ:

Understanding all the ins and outs of gym insurance can be complicated. At Hanson & Ryan, we’ll help you figure it out. Our team will take the time to understand your individual gym insurance needs at an intrinsic level so we can provide unique coverage that will protect the business you’ve worked so hard to build.

Contact one of our insurance experts for more information about gym insurance or to discuss your gym’s specific risk exposure.