Gym Types and the Insurance They Require

As a gym owner or manager, you want to protect your business and ensure the safety of your staff and members. There are a variety of different types of gyms, and all of them need insurance. However, they don't all need the same types of insurance.

It can be confusing when you already have so many items on your to-do list to try and determine the type of insurance you need for your gym. There are some insurance policies that all gyms need and others that only apply to ones with a larger group of staff members. Here's your chance to learn more about the types of gyms and the insurance policies that benefit them.

Types of Gyms

Not all gyms are the same. There isn't a one-size-fits-all gym. With so many individuals looking to get healthy and take better care of their bodies, it isn't surprising that the way one person wants to exercise is different from others.

Your gym reflects the way that you enjoy exercising and becoming physically fit, and your method of building a business. The most common types of gyms include:

• Membership gyms: Each member pays a monthly fee and can use the equipment as much as they like. This can include fitness classes. In many cases, the members sign a contract, and they remain members for a certain period of time or until they cancel.
• 24-hour gyms: These are typically membership gyms that are open all the time. They aren't usually staffed in the wee hours of the night, so members are given a code to enter the gym when staff isn't there.
• CrossFit: These are similar to a membership gym in so much as the members pay a monthly fee. However, each member works with a trainer when they're in the gym.
• Boot Camps: These are large group exercise programs that are generally done outside. The exercises don't require equipment, and they're easier for people to pick up on quickly. During colder months, the boot camp program moves into a rented space until the spring.
• Training Gyms: These gyms almost always lack cardio equipment, and all the members are working with a trainer while they're in the building.

The type of insurance that you carry for your gym can vary by its type.

Most Common Types of Insurance That Gyms Need

When you own a business, especially a gym, you need to make sure that you have the right insurance. It can protect your assets when something goes wrong, whether it's employees or a natural disaster. Here are a few of the most common types of insurance gyms carry:

Liability Insurance

All gym types need to carry liability insurance, although it might be harder for a 24-hour gym to find a company willing to offer it to them. If a person is injured in your gym or something else happens to them, they might decide to sue you.

Liability insurance steps up to pay this type of claim, and the insurance company will also handle the court costs and attorneys for this type of case. Without this type of insurance, you might lose your business, or the member might come after your personal assets if you're the gym owner.

Eventually, there will be an accident or someone will pull a muscle during a cardio class. If you don't have liability insurance, you stand to lose a lot if their lawsuit is successful.

Equipment Protection for Gyms

All gym types except for Boot Camp gyms need to consider equipment protection. Since boot camp programs are generally done outdoors, and the owner isn't renting a gym, this wouldn't help them.

If a window gets shattered or a pipe leaks ruining the flooring, this is the insurance you need to cover those costs and not have to pay for them out of pocket. This type of insurance can also cover theft if someone breaks into your gym location during off-hours.

Workers' Compensation Insurance

If your gym has even one employee, you need workers' comp insurance. It doesn't matter what type of gym you own or manage. This insurance covers doctors' bills, time off from work, and other medical costs, if one of your staff members is injured on the job.

Most states require businesses of any kind to carry this insurance. You might face penalties from the city, state, or federal government if you don't have a policy in place.

Even worse than a fine from the government, paying for your employee's medical bills out of your business's profits. An accident could wipe out your business, and then the employee might come after your personal assets.

Employee Practices Insurance

This is another type of insurance that if you have employees, you need coverage no matter the type of gym. While you're careful to hire only the best people, it only takes a moment of unwanted flirting or an off-colored joke to find yourself battling a lawsuit.

Sexual harassment and other types of misconduct by your employees are a real possibility. It also leaves your gym liable for their behavior. Without employee practices insurance, you might end up paying the victim out of company funds or your personal accounts.

Special Event Insurance

If your gym is hosting special events, such as a charity event, then you need special even insurance to cover anything that unexpectedly goes wrong. You're investing a lot of time and money into the event, and you need a way to recoup your losses if something happens.

This type of insurance will cover a cancelation if something happens, and you can't go through with the event. It will also cover any accident or injury during the event. Since this event is in a gym, there's always the possibility of an inexperienced person becoming injured.

Insurance is designed to protect your investment in the gym and ensure that you're covered when a worst-case scenario happens. While the coverage can be confusing, NEXO Fitness Solutions can help you make the best decision for your gym no matter what type of gym you own or manage.