What You Need to Know About Insuring your Fitness Studio

The health and wellness industry is booming. Over the last few years, there has been a greater demand for health and wellness services beyond traditional medicine. As a fitness center or studio owner, you prioritize the health and wellness of yourself and your patrons. As you look to continue to grow your business, it’s important to also look out for the health and wellness of your business.

Whether your fitness studio focuses on cycling, yoga, martial arts, boxing, or it is a classic space for people to come throw some weight around, you need to ensure your business is protected. Let’s get started!

Insurance Coverage for Fitness Studio Owners

General Liability

General liability coverage is, first and foremost, the coverage you need to cover incidents when your employees, products, or services may be deemed negligent or cause injury or property damage. This coverage protects your fitness business from general claims from patrons when they are on your property.

Professional Liability

This coverage ensures your business remains protected in case of claims against employees who act on your behalf. For example, trainers, physical therapists, or yoga instructors who work in your studio. 

Workers’ Compensation

You should also ensure you have workers’ compensation insurance to cover potential employee injuries while on the job. Some states contain workers’ compensation statutes that cover injury in an employer-sponsored fitness center, therefore it’s important to understand what your state covers. 

Occurrence Coverage

Occurrence coverage covers incidents that have occurred in the past. Within the fitness industry, an example would be a former patron injuring themself on your equipment and issuing a complaint years later.

Business Income & Extra Expense Coverage

Accidents happen, however, if your studio isn’t properly insured, those accidents may turn into something much larger. In the case of fires, floods, or other studio-closing events, you need the coverage to relocate your facility and continue to provide for your members.

Business Personal Property Coverage

Your fitness studio may include additional amenities such as locker rooms, pools, a sports court, and classrooms. These amenities also need coverage in the case of unexpected accidents. 

Equipment Breakdown Coverage

Coverage in the case that equipment breaks is important to have if you own a fitness facility. This coverage protects you and your business from expenses that are incurred due to the breakage of equipment. 

Premises Liability Coverage

This coverage is essential to your fitness studio, as you likely have a high volume of foot traffic. This coverage, however, not only covers potential injury within your facility, but it also covers injury if the patron gets injured on another area of the premises (for example, in the parking lot).

There are a few ways you can begin to mitigate these risks. First, your facility should provide spotters for weight lifting–– especially with free weights. You should also ensure your facility has a well-maintained parking lot and entrances/exits to limit the risk of slips and falls. 

Participant Liability & Accidental Medical Coverage

Not all fitness studios need this coverage. This coverage mainly applies to fitness facilities that sponsor tournaments or supervised competitions. This liability insurance protects from liability claims that are a result of injury during competitions.

What you need to know about employee insurance coverage

As a fitness studio owner, you may decide to hire independent contractors, trainers, physical therapists, or teachers. In doing so, you will need to make sure they have a certificate of insurance with a general liability insurance limit of at least $1 million incidental medical malpractice coverage.

Depending on how you choose to classify your employees, the insurance options may vary. If you choose to classify your employees as W-2, your trainers and other employees will be covered under your business’s liability coverage. 

It’s equally as important to understand when you can classify your workers as 1099 contractors. Many states argue that as a fitness center, you are setting appointments, schedules, and dress codes, which leads to an employee/employer relationship.

As you look to begin your journey in opening your fitness center, you need a partner who is ready and prepared to help you mitigate your risk. Contact Brenda Jo and her team at Competitive Edge to get started!