This would be the largest areas for claims, with many industrial area gyms suffering water damage due to leaking roofs and water runoff following heavy rain.

This would be one of the highest payout claim types, yet it’s most overlooked by customers. Modern gyms run phone systems, CCTV, PA systems, Multiple TV’s and Mains powered cardio equipment. Lightning strikes are the most common cause for these items to blow up (fuse) due to power surge, yet a surprising amount occurs due to human error in multitenancy situations where electricians or other trades have worked in the main power distribution board room. Most lease agreements, unfortunately, enforce responsibility for covering items such as air conditioners back onto the tenant, and most equipment hire/lease agreements put the responsibility for this type of loss back onto the gym.

This is another important area of insurance. It only pays out following a claim under another policy section but replaces the businesses lost income for up to 12 months following a claim. Examples of claims have included:

o Factory fire in an industrial estate, where due to chemicals in the premise the fire department closed the entire estate down so our insured could not operate for 9 days.

o Upstairs tenant left a tap running which “flooded” the gym below causing extensive damage to reception area and office. The Gym closed for approx. 1 week whilst the entrance was rectified and the flooring dried. A few weeks later it was discovered that mold was growing in the walls and carpet, so the gym was closed for a subsequent 3 weeks whilst effectively gutted and refitted.

Many businesses do not have the correct cover for their business property insurance and as such close within 18 months following a major event.