Gym and fitness popularity are on the rise again with memberships and attendance nearly doubling pre-pandemic levels. With the number of different people, offerings, and operations happening daily at the gym, fitness centers have a lot of risk associated with their business. By addressing the unique risks associated with their operations, you can help your clients determine what insurance their gym needs.
What are the common risks associated with gyms and fitness centers?
Equipment
There are many risks inherent to fitness centers. One obvious risk is equipment. Beyond the typical hazards associated with most businesses operating at a physical location, fitness centers have increased liability due to the exercise equipment in use. Along with the risk of it breaking, there’s also the possibility of improper use, dropped weights, and injury. Along with equipment issues causing injury and business disruption, they can also cause harm to your client’s reputation.
Crime
Most fitness centers and gyms have locker rooms. With patrons’ valuables all being housed in the same area, there is the risk of theft. Belongings can be stolen or damaged, there can be violence and fights, and injury can occur. These potential crimes are a liability to your client’s business and can be costly.
Cyber
When people sign up at a gym, their membership usually requires payment information and personal information such as name, age, and phone number. With most fitness centers storing this sensitive membership information electronically, they expose themselves to the risk of potential cyber-attacks. These attacks can compromise sensitive information and be costly to repair.
Additional risks that can be associated with fitness centers are workers comp, property, and liability. So, what types of coverage could help your clients manage their risk?
Insurance Coverage for Gyms & Fitness Centers
General Liability: General liability insurance protects businesses against a variety of claims including injuries or property damage arising from business operations. These policies can protect your clients in the event of bodily injury or property damage that occurs at their fitness center.
Cyber Insurance: Many fitness centers find themselves at cyber risk as a result of storing sensitive membership information electronically. Cyber policies help protect your clients from rising cyber threats, safeguard sensitive data, cover recovery costs, ensure legal compliance, and manage reputational risks—offering peace of mind.
It’s important to fully understand the common exposures associated with fitness centers and the extent of coverage that will benefit them the most. Learn more about Coterie Insurance’s small business coverage and the ways we can help you serve your clients.
