Fitness business insurance is an important part of running a successful fitness business. As a gym owner or a self-employed fitness instructor, your passion is to help people become the fittest and healthiest version of themselves. But while you prioritize your clients’ health, it’s equally important to secure the well-being of your business, employees, and yourself. A single accident, injury, or faulty equipment issue could jeopardize your business, lead to financial risks, and damage your reputation. 

What Insurance Do You Need to Run a Gym?

One solution to mitigate these risks is by securing adequate insurance coverage. Here are the seven essential fitness business insurance types that all gyms and fitness businesses should consider:

  1. Workers’ Compensation
  2. General Liability Insurance
  3. Professional Indemnity Insurance
  4. Business Property and Contents Insurance
  5. Business Interruption Insurance
  6. Management Liability Insurance 
  7. Income Protection Insurance 

1. Workers’ Compensation 

This type of insurance is mandatory for all employers in Australia and provides financial compensation to employees who can’t work due to work-related injury or illness. Workers’ Compensation Insurance covers medical expenses, rehabilitation costs, and living expenses. Note that you, as an employer, are not usually covered by this insurance, so it’s advisable to consider alternative options such as Income Protection Insurance.

2. General Liability Insurance

This type of insurance, also known as Public Liability Insurance, protects you, your employees, and your business activities if you’re alleged to have caused injury or property damage to clients or members of the public.

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 covers claims related to financial loss, injury, or illness resulting from the professional advice or services you or your employees provide to clients. For example, if a client claims that the exercise plan you created led to chronic back pain, this insurance can cover 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 protect against damage, theft, fire, water damage, storm damage, and other claims.

5. Business Interruption Insurance 

Business Interruption Insurance protects your business’s financial health in the event of a disruption that forces you to temporarily close. It can cover the shortfall in profits or a pre-agreed amount while your business is closed, and the costs of repair and renovation to get your business running again.

6. Management Liability Insurance

Management Liability Insurance protects your business from liability claims and financial exposures that come with running a business. It covers legal fees, compensation, and claim settlement for claims arising from mismanagement or negligent actions of current and future directors, managers, and employees involved in managing a company.

7. Income Protection Insurance 

Income Protection Insurance is highly recommended for all self-employed business owners and provides financial assistance if you’re unable to work due to illness or injury. It pays a portion of your regular income to help cover your bills, living expenses, and rent/mortgage.

Gym Insurance HQ is a trusted insurance broker for gyms and fitness professionals. We can create a customized fitness business insurance package to protect your business and livelihood. Contact us on 1300 815 344 or get a FREE quote now 

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