General Liability Versus Professional Liability Insurance: What Is the Difference?

Operating a gym or working as a trainer or fitness professional is not for the weak or unprepared. Fitness professionals are vulnerable to unique risks and liabilities that could mean financial ruin without the right provisions and resources, primarily insurance for gyms. Gym liability insurance is an investment that not only protects fitness professionals from certain issues that could impede their business operations but also helps keep their clients safe.

So, what should you do when looking for a comprehensive gym insurance policy from a credible and trusted insurer? Simply research your options and compare them to determine their suitability for your business needs. 

Consider the following information about general liability versus professional liability insurance and their differences.

1. What is covered under professional liability insurance?
2. What is not covered in professional liability?
3. What is covered under general liability insurance?
4. What is not covered under general liability?
5. What is the best reason to carry a general liability policy?
6. Why do small businesses need professional liability?

What Is Covered Under Professional Liability Insurance?

It’s not easy to navigate the many challenges of owning or managing a gym that can occur during its daily operations. Professional liability insurance for gyms covers fitness trainers and gym operators from third-party issues that arise during the delivery of services. It doesn't matter how professional or trained your staff is, it’s important to get the protection you need with professional liability insurance.

Whether you plan to train clients directly or hire trainers and affiliates, these types of services create unique liabilities for you, your staff, and your members. Lawsuits are common when client injuries, staff negligence, and other related incidents or allegations arise that could damage more than just the gym’s reputation. The financial consequences of these types of situations can be hefty and quickly eat away at any profits and revenue, making it harder to manage operational expenses.

It’s important to understand that professional liability coverage is not included in general liability policies. But it can be added to help close the gaps.

What Is Not Covered in Professional Liability?

Professional liability insurance for gyms does have limitations. Although it covers expenses related to claims and lawsuits related to mistakes, bad training guidance or instruction, and other issues related to professional gym training services, it does not extend to claims related to negligence and immoral acts. The most common types of professional liability insurance options are medical malpractice and errors and omissions.

What Is Covered Under General Liability Insurance?

General gym liability policies often cover medical and legal expenses related to direct and third-party claims involving property damage and bodily injuries. For example, when members are hurt while training or from simply being on the premises, gym owners are responsible for covering any costs the injured parties incur, such as pain and suffering, missed income, medical, and litigation. Unlike other industries, the risk of these issues is much higher and occurs more frequently, making general liability coverage an important consideration before starting a fitness business.

In the sports and fitness industry, the potential for property damage is high. Property damage isn't always a byproduct of vandalism or weather events. Accidents and intentional incidents can lead to equipment damage (think heavy weights being dropped on the floor, damaging the surface), facility damage, and repair issues. Not all gym businesses are stationary. Many trainers travel to clients, events, and other locations to provide their services, increasing the risk of third-party claims. These are the type of property damage situations general liability insurance for gyms covers for fitness and sports business owners.

Nexo is the only sports and fitness insurer in the industry that provides comprehensive property coverage to fitness professionals regardless of where they offer their services. That means trainers who offer their services offsite and gym owners or operators can reap the savings and convenience of having liability coverage for their property wherever they go.

What Is Not Covered Under General Liability?

General gym liability insurance policies from most gym insurers usually doesn’t include property damage coverage for incidents and claims that arise onsite. That includes theft, vandalism, fraud, training negligence, and intentional damage to the gym or its equipment. Most insurers require customers to purchase coverage for facility damage independently of mobile or off-site liability coverage. General gym liability coverage also does not cover claims associated with third-party or the business property leased or rental equipment and property.

What Is the Best Reason to Carry a General Liability Policy?

The answer is simple: to mitigate the daily risks and liabilities associated with owning a fitness business or offering related professional services. The key to growth and success in the fitness industry is being prepared for potential financial and legal issues that impact your business. That can only be done with a comprehensive general gym liability policy that includes coverage for property damage and bodily injury claims.

Why Do Small Businesses Need Professional Liability?

Sports and fitness business owners, professionals, and vendors who offer services and products belong to a specialized field and are liable for how their facility and services impact their members and third parties. Professional gym liability coverage includes staff and member-related accidents and negligence claims.

Key Takeaways About Insurance for Gyms

Successful fitness professionals know that working smarter and not harder to win the race requires preparation. General gym liability and professional liability insurance make it easier for owners and trainers to focus on their businesses and members with as little stress and inconvenience as possible.

To learn more about our low-cost general, professional, and concierge insurance for gyms, contact Nexo at 310-362-6503 today!