As a gym owner or a self-employed fitness instructor, your passion is to help people become the fittest and healthiest version of themselves. While your top priority may be your clients’ health and wellbeing, it’s important not to overlook the wellbeing of you, your business and your employees. One slip, trip, faulty equipment issue or injury could pose a significant threat to your business and result in financial risk exposure, lawsuits and reputational damage.
Taking out adequate insurance can provide you with a solid footing to run your business with confidence. There are several types of insurance that all gyms and fitness businesses should consider:
- Workers’ Compensation
- General Liability Insurance
- Professional Indemnity Insurance
- Business Property and Contents Insurance
- Business Interruption Insurance
- Management Liability Insurance
- Income Protection Insurance
1. Workers’ Compensation
If you own a business in Australia and you employ staff, you are required by law to take out Workers’ Compensation Insurance. Workers’ compensation provides financial compensation to your employees if they are unable to work due to a work-related injury or illness. It’s designed to cover medical care, rehabilitation costs and living expenses. As an employer you are not typically covered by your Workers’ Compensation policy, so you’ll need to consider alternative options such as Income Protection Insurance.
2. General Liability Insurance
General Liability Insurance (also known as Public Liability Insurance) may protect you, your employees and your business activities if they are alleged to have caused bodily injury to your students, gym members or other members of the public, as well as damage to third party property. For example, if a member at your gym slips on the floor and twists their ankle you may be coerced for legal fees and claim costs.
3. Professional Indemnity Insurance
Professional Indemnity Insurance can cover claims relating to financial loss, injury or illness as a result of the professional advice or services you or your employees provide to clients. For example, if a client lodges a claim against you alleging that the tailored exercise plan you created for them led to chronic back pain, you may be covered for legal fees and compensation costs.
4. Business Property and Contents Insurance
Business Property and Contents Insurance covers your business premises such as offices, storage rooms, changing rooms, studios and recreation facilities as well as gym equipment and machinery. It can cover costs of damage, theft, fire damage, water damage, storm damage and other claims.
5. Business Interruption Insurance
Business Interruption Insurance is designed to protect your business and its financial health in the event of a disruption that leaves you with no other option than to close your doors. It may cover the shortfall in profits (or up to an agreed amount) while your business is out of action so you can continue to pay your bills, staff and other financial commitments. It can also cover the cost of repair and renovation works to get your business up and running again.
6. Management Liability Insurance
Management Liability Insurance can protect your business from liability claims and financial exposures that come with running a business. It can cover legal fees, claim settlement and compensation for claims arising from mismanagement or negligent actions of past, present and future directors and managers (and other employees involved in managing a company). Small businesses often overlook this type of insurance, but claims like bullying and harassment, unfair dismissal, discrimination and employee misconduct can be made against any company.
7. Income Protection Insurance
Income Protection Insurance is recommended for all self-employed business owners to assist you and your dependents financially if you are unable to work due to sickness or injury. It pays out your regular income (or up to a percentage of it) while you’re off work to help you pay your rent/mortgage, bills and living expenses.
Gym Insurance HQ is a leading insurance broker for gyms and fitness professionals. We understand the ins and outs of running a fitness business and can create a tailored insurance package to protect your business and livelihood. For more information or to discuss your options, contact our brokers on 1300 815 344.