If you run any kind of business, you know any business runs with a certain degree of risk. However, gyms and fitness studios, with their heavy equipment and intense physical activity, carry an even higher risk of injury.
Insurance for your small fitness studio is vital to protect yourself from claims, lawsuits, hazards, and severe costs if something unexpected happens.
Things will inevitably go wrong at any fitness studio. It’s a fast-paced, energetic environment filled with passionate (and sometimes overzealous) individuals of all ages and skill levels.
Therefore, client injuries are bound to happen quite often.
A member could injure themselves severely if a hefty piece of equipment falls on them. Or if they don’t know how to use the equipment properly. Perhaps a member trips over a loose cable on the ground. All of these instances leave your business liable for a cost.
But various insurance policies for your studio are necessary to install if you want to stay protected.
If a client is injured, you will want to cover their immediate medical bills, especially to show that you care about their well-being. General liability insurance helps you to cover these without taking money out of your pocket.
Employee and Instructor Mistakes
We all know that your gym employees and instructors can’t be everywhere all at once, micromanaging each member. But your employees must be fully meeting their professional standards, including warning gym members about potential safety hazards.
However, human error and forgetfulness are normal.
A pilates or yoga instructor could stretch their client a little too far. A personal trainer could push their client to lift weights that are too heavy or provide the wrong technique for using a machine. A health and wellness coach could recommend a product to a client with unknown allergens. Or maybe a spin instructor didn’t explain the possible risks of intense cycling on cardiac stress.
Any damages that may arise from a major error or omission can be detrimental to your business. Professional liability insurance ensures protection from lawsuits and additional costs in these circumstances.
While member injuries are common, gym employees are also at risk of injury.
You’ll have instructors, janitors, cleaners, etc., who could also injure themselves while moving or cleaning a piece of heavy equipment. Any employee injuries that happen when they’re at work could be expensive for your small business.
One of many types of insurance policies that are a must for small businesses is workers’ compensation insurance. This insurance type would cover medical costs, lost wages while your employee takes time off work, rehabilitation, and survivor benefits if a team member dies on-site. Altogether, these could build up to an immense cost that would come out of pocket without insurance.
No matter what your business entails, if you have employees, you need this policy.
Customer Data Hacking
In this day and age, most businesses lean heavily on technology and data. Everything is stored online in the digital world. Therefore, every business owner needs to remain vigilant of cybercrime to protect their clientele’s private information.
Cyberattacks are extremely common nowadays. And just because you’re not a large company, doesn’t mean you’re not at risk. In fact, small businesses are at higher risk of being scammed than larger companies.
It’s too easy to hack and steal important information from databases. And your clients’ personal information, banking details, payment data, and credit card details will most likely be stored on your business’s digital fitness platform.
This is where cyber insurance or cyber liability comes in. This type of insurance protects you if your clients’ personal information is hacked and stolen.
Another reason you need insurance for your small fitness studio is in case of disasters.
Fire, hail, tornadoes, earthquakes, and other naturally-occurring disasters could all happen unexpectedly. And they could cause immense damage to the building in which your studio is located.
Commercial property insurance typically protects the building and the contents within the building. It also covers repairs and replacements, as well as necessary construction costs.
Without insurance, property damage could put you out of business. With insurance, however, you could emerge with minimal losses. This kind of insurance could essentially make or break you.
Whether severe or mild, having to close one’s business for a specified time could change the lives of you and your employees.
Some risks can be avoided and some we can deal with. But some are completely unexpected and result in tremendous financial loss.
And in most instances of natural disasters, they happen spontaneously and without warning. For example, no one expected a worldwide pandemic (COVID-19) would occur and force many businesses to shut down for an extended period.
Business interruption insurance safeguards your business while it’s closed. Therefore, once everything is sorted out, you can get up and running in no time.
Damaged or Faulty Equipment
Your fitness studio will likely be filled with high-end and high-tech equipment that can be a nightmare of an expense to repair or replace.
Your equipment will undoubtedly get damaged at some point or another. And this can also happen spontaneously, without warning. But you surely want to keep everything fully functioning for a smoothly and professionally run fitness studio.
Business equipment insurance is a godsend, even in the case of maintenance or upgrades of your aging pieces of gym equipment.
You should also consider covering equipment outside of the studio grounds. At an outside boot camp or an outdoor personal training class, for example.