How Much Does Gym Insurance Cost?
Gym insurance refers to a policy that protects a public gym from legal and monetary responsibility to its clients. This is an important aspect for fitness companies. A fitness gym has all the complications of any business, but they also run extra risk because of all the physical activity going on each day. Purchasing the right gym insurance is vital when there are members of the public who are making use of a gym’s services or premises to ensure the business is protected from claims made against it. With the right insurance coverage in place, gym owners can obtain protection in times when claims arise, enabling them to continue with their operation while their insurance provider takes care of the problems.
How much does it cost?
- Depending on the size of the gym and what is going to be inside of the facility, most recommend that you budget at least 2-4% of the revues for gym insurance. So if you did $1,000,000 for the year, the costs could be around $40,000 annually for an insurance policy. This can be paid monthly, every three months, every 6 months or annually.
- At FranchiseChatter.com, the insurance cost for an Anytime Fitness Franchise ranges from $2,500 to $5,000.
- According to RockwerxClimbing.com, the typical insurance rate for climbing facilities is between 2% and 3% of the revenues. The site provides an example of a gym having climbing-wall related revenues of $750,000, which puts the insurance cost at around $20,000 for the year.
- Franchise Direct provides a detailed description of the cost and fees involved in a My Gym franchise. Insurance costs for a mobile franchisee fee ranged from $1,750 to $2,500. The insurance costs for a fixed center ranged from $2,000 to $5,000.
What is going to be included?
- There are different types of insurance for a gym. These are general liability insurance, property coverage, workers compensation, and employment practices. A public liability policy typically covers all legal representations as well as medical costs relevant to a claim. Additionally, any property damage experienced by another party will also be covered by the insurance provider. Workers compensation provides protection in cases when an employee is injured while on the job. Employee practices insurance ensures coverage of ethical hiring procedures, harassment, or wrongful termination.
- Most policies are going to cover up to $1-$3 million per incident. An incident may be an worker’s compensation claim, a lawsuit due to injury or discrimination, etc.
Factors that influence the price:
- Sales and payroll estimates. Liability insurance premiums are usually based on a company’s sales and payroll projections provided before the creation of a policy. If the actual amounts are higher post-issuance of the policy, the company may be required to pay an incremental premium. If the amounts are lower than the estimates, the company can get a refund.
- Type of business. Liability premiums are also affected by the type of business and the associated risks. Businesses engaging in a trade with lower risk typically have lower premiums. The financial stability and longevity of the business also plays a factor.
Tips to know:
- If your gym exercises solid, documented practices and ensures that safety procedures are in place, your insurance provider may consider you a low-risk client for liability insurance and, thus, charge you with reduced premiums.
- Some insurance providers may require you to join another association before you will be eligible. Evaluate the pros and cons before making a decision.
- It has been noted that the insurance coverage price will be determined by the total sales of the gym. The reason for this is that if you are making a lot of money, it means that you have a lot of business. More people means higher chances of problems as well as a greater need for more employees.
- Cutting insurance costs may be a practical option, but unfortunately, it also translates into cutting coverage and protection. Therefore, it is critical to evaluate the disadvantages of cutting insurance coverage with its financial benefits.
- If you own a gym, make a habit of inspecting all of your gym equipment on a regular basis. This will hopefully prevent accidents from happening. Also, have signs for each activity outlining exactly how to do the exercise so people do not injure themselves.
How can I save money?
- Shop around to find the best rates offered and obtain several quotes from insurance providers. When comparing liability insurance quotes, make sure to compare policies providing similar levels of protection.
- Lower your gym insurance costs by making sure that your staff members are fully trained and by implementing measures and precautions that keep your premises safe, secure, and risk-free. Many insurance providers offer reductions in policies to clients who uphold safety in their organization. By reducing your risks, you can reduce your premiums.
- Talk to your insurance provider about bundling public liability insurance and employee’s liability coverage. This does not only provide protection in cases when an employee is injured. The policies can also be obtained in exchange for a discount.