Guest article by insurance agent Gil Engelman, Center for Sports Insurance
Anyone who opens a gym, naturally, wants the place to be managed in a professional, orderly and correct manner, over time. To this end, he employs professional and experienced fitness instructors, buys or rents equipment and facilities at the highest level and makes sure to provide his customers with the best service, and try to fulfill their needs as much as he can, optimally.
One of the things to consider if you want to manage a gym professionally and correctly, over time, is insurance for the gym. In the following guide we will review the most important points regarding gym insurance.
The main coverages of gym insurance
Anyone interested in owning and managing a gym, whether it's a branch of a chain or a completely independent gym, must take into account the risks they may find themselves facing. What can serve him is a suitable gym insurance policy, which includes all the required components, in a way that matches his needs and the conditions of the place and the field.
Here are the main covers you need to know:
Gym building insurance
Building insurance refers to every aspect of the building in which a gym operates. Walls, plumbing, electricity, and every single detail. It refers to everything in the walls and everything adjacent to it. The insurance covers cases of fires, earthquakes, natural damage, floods, and more. Things that can happen as a result of sabotage, or as a result of force majeure.
Content insurance
A gym contains a lot of equipment, facilities, objects, devices and other things related to the operation and use of gyms. The policy covers any damage that may be caused to the contents, for various reasons. It is important to note that the insurance should include a set-up value, that is, the coverage value will be adjusted to the current market price and not to the price the item is worth today in the second-hand market.
third party insurance
This is one of the most important and essential components of gym insurance policies. The definition of the coverage is "unforeseen accidental damage" so it is very important to invest time, money and patience in this. Unfortunately many times gym owners prefer to save on this aspect, which may cause them financial damage in later stages.
Third party insurance refers to cases where damage is caused to the trainees, whether it is in aspects of the body or whether it is in aspects of property. For example, if a trainee finishes training, gets in the shower and slips in the shower, then he can file a tort claim against the institute. Third party insurance will help him cover the compensation he will be required to pay. Of course, it is important to note that the insurance also covers accidents during the training itself, whether it is a fall from the treadmill, a dumbbell that fell on the exerciser, etc.
Professional liability insurance
One of the most important elements in any field of work and in particular in the field of fitness training, gyms. This part is for the responsibility that trainers and instructors at the institute have towards their trainees. The insurance covers cases in which trainees are injured during or after training, as a result of the trainers' negligence and unprofessional conduct and they suffer physical damage.
The difference between the component of third-party insurance and professional liability insurance is due to the fact that the component of professional liability is direct and related to the training and professional negligence of the trainer and the institute, while third-party insurance is not necessarily related to professional negligence or the conduct of the trainer towards the trainee, but rather results from an "accident".
It is highly recommended for gym owners to have professional liability insurance coverage as part of their business policy, and in addition, the freelance fitness trainers who work at the gym should consider purchasing professional liability insurance for fitness trainers separately to cover them in case of claims from trainees that are addressed to them personally.
Employers liability insurance
This part refers to the claims of salaried employees against the owners of the premises, if, God forbid, they suffered damage at the workplace. That is, here we are talking about damages that may be caused during training to the trainers and not to the trainees.
If we assume a certain facility will not be stable and safe, therefore caused to the coach. Although he will receive compensation from National Insurance, it is likely that he will also sue the institute and the employer separately. That's why it's important to have this component. It is important to note that this component refers to administrative workers, cleaning workers and more.
Additional highlights on business insurance:
In addition to the insurances recommended for a fitness business, it is important to know several important points:
Excessive insurance requirements
The owner of the fitness business will often be required to show "proof of insurance". This is a legal document that is intended to give a sort of "official confirmation" from the insurance company that the business owner has a policy that covers their various types of coverage. Usually the owner of the institute will meet this approval when signing a lease or work contract with certain contractors or authorities.
It is important to know that many times parties who request this approval request "generic approvals" with inflated insurance amounts by default and it is possible to negotiate with them to lower the excessive insurance requirements. This, of course, will directly lead to significant savings in the policy.
Extension outside the institute
If the business conducts activities outside the gym, for example activities in parks or other places, then an "outdoor activity expansion" must be purchased. This is an extension of business insurance for activity carried out outside the areas defined as a business.
Protections and approvals for the business
During the process of purchasing business insurance, the insurance company will want to send an inspector to examine the place, examine its risks, and of course want to see all the permits required to operate the place, to make sure that it is indeed operating legally, according to all the relevant requirements.
Sometimes the insurance company will require certificates such as an electrician's certificate of integrity on the main electrical panel, a constructor's certificate on the voltage facilities, parallels, a fire extinguisher certificate, a business license, etc. It is important that in every business other things are required depending on the size of the business, the number of trainees, the value of the business content and more.
It is important to note that the accompaniment of a skilled insurance agent will be able to help the business owner obtain reduced insurance requirements with the insurance company and thus save on the large expenses of setting up expensive protection systems in the business.
Dedicated insurance for renovation and construction works of the gym
If you are in the phase of setting up the gym and you are in the phase of setting up or you are in the process of renovating the business, it is important that you know that the gym's policy excludes renovation activities and contract work.
That is, even before you purchased gym insurance with all the components we mentioned, already at the stage of the construction and establishment of the place, it is highly advisable to purchase contracting insurance. This insurance is a separate insurance that covers a wide range of details related to the construction process (including in cases of renovation) and especially damages that may occur to a third party.
In recent years, unfortunately, we have witnessed severe deaths and injuries of workers in the construction industry. Every damage event of this type exposes the person ordering the work (the owner of the gym) to claims of millions of shekels!
Another event that may happen during the renovation work is a fire that occurred in the business during the electrical work that burned down the neighboring business.
The policy offers coverage for raw materials, third-party insurance for damages that may be caused to nearby buildings, employer's liability insurance for contractor employees, and more.
It is important to make sure to purchase this policy so that you are already covered during the construction or renovation phase of the place.