What Is the Cost of Gym Insurance? Blog | What Is the Cost of Gym Insurance?
Insurance Basics 03/09/20

What Is the Cost of Gym Insurance?

When operating any business, you need to be sure you’re protected against all possible legal injunctions. In tech, you have to be diligent about data security and IP theft. Restaurants need general liabilities and liquor licensing. In the fitness industry, you need excellent general liability insurance, professional liability, worker’s compensation, and property coverage.

How much does this all cost? And why do gyms need such comprehensive insurance coverage? To learn why your business needs wellness and fitness insurance, read ahead.

What Gym Insurance Protects Against

The nature of being the owner of a gym or fitness center is that you have a high-risk business. Within your four walls, people are exerting themselves in high-intensity workouts and operating fitness equipment that can weigh up to 500 pounds, all while pushing themselves to exhaustion. This clearly constitutes high-risk

So what does gym insurance protect against, and where exactly does the cost of gym insurance accumulate?

  • Accidents – Basic protection needs to cover mishaps. Tripping downstairs, slipping in the shower, and other accidents are commonplace. Since it happens on your property, you’re responsible for any damage or injury that takes place.
  • Injuries – The injury rates are high in the fitness industry (when compared to other businesses); be sure to protect yourself against the array of injuries that can occur.
  • Worker’s Compensation – Injuries are not limited to the gym members. Personal trainers, class instructors, and other fitness professionals or employees are liable for injury and must be paid worker’s comp when unable to work.
  • Health Emergencies – Overdoing it on cardio equipment can induce cardiac arrhythmia or worse. Too much weight put on machines can lead to serious bodily harm. These health emergencies can include the cost of ambulances as well as the proceeding litigation and medical costs.
  • Litigation Costs – Court settlements, lawsuits, and defense teams can bankrupt businesses unless they have an insurance plan to cover the legal fees.
  • Medical Bills – Because the rate of injury is high for gyms, expect to pay medical bills in court settlements. Having an insurance plan prior to this can avoid seriously harming your business.

Ultimately, gym insurance protects against bankruptcy. With more businesses being taken down by lawsuits than by debt, you need to ensure you pay the proper amount to be adequately covered. This begs the question: what factors affect the cost of fitness center and gym insurance coverage?

Factors Affecting Gym Insurance Costs

The amount you pay for your insurance policy directly corresponds to the basic factors of what your gym entails. That includes:

  • Size of the gym – A Planet Fitness operating for a community of 10,000 local members is going to operate differently than your local pop-up gym that has 500 recurring members. The amount of liability coverage needed grows exponentially with size.
  • Location – Similarly to the size of the gym, the location will also affect your policy costs. Operating in Manhattan, New York will cost more than Barberton, Ohio.
  • Number of employees – The more employees means more people that need to be covered under worker’s compensation insurance. However, this cost is offset by the sheer fact that the more employees you have around your gym, the fewer injuries are likely to happen. A balancing act this one is.
  • Services offered – What services your gym offers will significantly affect the type of insurance policy needed, thus the cost of gym insurance. Consider if you have any of these offered in your gym:
    • Boxing, martial arts, or combat sports
    • Massage therapy
    • Supplements, food, or drinks for sale
    • Personal trainers

Wherever your gym falls along these categories will decide how much you pay for your policy. To understand some specifics, let’s look at small gyms and medium-sized gyms.

The Average Cost of Protection for a Small to Medium-Sized Gym

Taking these factors into account, your gym is extremely vulnerable when it comes to the high cost of medical bills and litigation expenses. These are no small fees to contend with. That’s why the average cost of protection is in the thousands.

FitSmallBusiness found that the starting annual rates for insurance for gyms that are roughly 2,000 square feet have a single front desk operator, and at least $100,000 worth of gym equipment includes:

  • General Liabilities – Starting minimum: $1,500 – General liabilities cover basic accidents, injuries, and health emergencies for the gym. 
  • Property Coverage – Starting minimum: $1,000 – Covers damage, theft, and vandalism to the building. It also covers renovations, construction, and natural disasters when they occur.
  • Worker’s Compensation – Starting minimum: $950 – Covers employee’s loss of wages due to injury or death at the workplace.
  • Professional Liability – Starting minimum: ~$1000 (varies on size of business)  – Covers mistakes and wrongful acts made by your business that potentially could cause harm to a client or customer.

This brings the total minimum cost for small to medium-sized gyms to about $3,450. This is a good baseline to start to understand your specific business needs and your own risk aversion. Consider the factors listed above when considering how much you want to pay to stay covered.

Cost of Protection: Cost-Benefit Analysis

An important tool to understand gym insurance is a cost-benefit analysis. Remember that a single lawsuit with extensive medical bills can cost gyms enormous fees that they may not be able to cover without accruing debt. While paying annual fees in the thousands of dollars can seem like a large out-of-pocket expense to cover, the costs of not having insurance coverage when you need it can be detrimental.

Protect yourself, before someone in your gym wrecks themselves.

 

Sources:

CBS News. Study: Most bankruptcy due to lawsuits, not debt level. https://www.cbsnews.com/news/study-most-bankruptcy-due-to-lawsuits-not-debt-level/

FitSmallBusiness. Gym Insurance: Cost, Coverage & Providers. https://fitsmallbusiness.com/gym-insurance/

Blog

Tips for protecting yourself and your business.

Healthcare

Malpractice Insurance FAQs: What Is a “Retro Date”?

Pharmacy

Why You Should #ThankAPharmacist This Month

Mental Health

Why School Counselors Should Consider Malpractice Insurance

Insurance Basics

Am I Legally Required to Get Small Business Insurance?

Occupational Therapy

Liability Risks for Occupational Therapists

Insurance Basics

What Are the Exclusions on a General Liability Insurance Policy?

Nurses

Nurse Liability Insurance: 7 Reasons to Get a Policy Even If Your Workplace Is Covered

Lab Technician

Four Common Mistakes Lab Techs Make

Pharmacy

Upskilling and Reskilling in Pharmacy

Insurance Basics

How Can I Reduce My Professional Liability Insurance Cost?

Healthcare

Is Administrative Staff Covered by Medical Malpractice Insurance?

Mental Health

What Can Happen if a Clinical Counselor Doesn’t Carry Malpractice Insurance?

Mental Health

Mental Health Technicians Are More Important Than Ever in 2021

Mental Health

Why Every Counselor Should Have Malpractice Insurance (Even If You’re Just Starting Out)

Consultants

Five Reasons Why Marketing Consultants Need Insurance

Speech Therapist

Speech Therapist Insurance: What Do You Need to Cover?

Insurance Basics

General Liability and Workers’ Comp: What’s the difference?

Event Planning

What You Need to Know About Planning Your Comeback Event

Event Planning

Top Tech Tools for Hosting a Hybrid Event

Mental Health

Are You at Risk? Four Potential Liabilities When You’re an Uninsured Drug Counselor

Consultants

Consulting in the Tech Field? This is the Insurance Coverage You Need

Event Planning

How to Use Virtual Reality for Your Hybrid Event

News

Bold Penguin and NOW Insurance Partner to Make Professional Liability Insurance Easier to Quote and Bind

News

Matt Higgins Joins NOW Insurance as Executive VP of Engineering

Event Planning

Planning a Conference? You Need Event Insurance

Consultants

Five Steps to Buying Consultant Business Insurance

Nurses

Nursing Board Discipline: Know the Process

Event Planning

Eight Things Commonly Forgotten by Event Planners

Event Planning

Hybrid Events Are the New Norm – What Should Event Planners Know?

General

How Much Is Professional Liability Insurance? 6 Factors That Affect Price

Mental Health

Providing Peace of Mind: Insurance for Mental Health Workers

Mental Health

7 Reasons Rehabilitation Counselors Should Get Malpractice Insurance

Pharmacy

Pharmacy Technician: What’s Next?

Consultants

Common Mistakes When Starting a Consulting Business

Mental Health

8 Reasons a Family Counselor Should Be Insured

Mental Health

Professional Liability Insurance for Mental Health Technicians: What Does It Cover?

News

NOW Insurance Partners with Hiscox on Medical Malpractice Insurance

Healthcare

What to Know About Multi-State Healthcare Licensure

Healthcare

6 Risks of Being a Substance Abuse Counselor Without Malpractice Insurance

Healthcare

What Are the Best Upskilling Opportunities in Healthcare?

Healthcare

How Virtual Care Expands Access to Specialists

General

Thinking of Becoming a Therapist? 5 Things to Know

Healthcare

Do School Counselors Need Their Own Insurance Policy?

Healthcare

5 Rewards of Being a Mental Health Technician

Home Health

What are Key Compliance Issues in Home Healthcare?

Home Health

The Home Hospital: What Is It and How Will It Affect Future Care?

Healthcare

What Challenges Should School Counselors Expect as Schools Reopen?

Pharmacy

Sharing the Workload: Questions You Can Ask Your Pharmacist Instead of Your Doctor

Healthcare

5 Situations Where Testing Labs May Be Legally at Risk

Healthcare

Do Marriage Counselors Need Professional Liability Insurance?

Healthcare

8 Malpractice Insurance Terms Every Medical Professional Should Know

Healthcare

Social Worker Insurance: Do I Need My Own Coverage?

Mental Health

Pandemic Pressures Drive Increased Need for Mental Health Technicians

Nurses

Celebrate National Student Nurse Day on May 8

Nurses

National Nurses Week: Celebrate May 6-12

Healthcare

Why Nursing Students Need their Own Professional Liability Policy

Home Health

How to Find Affordable Professional Liability Insurance for Home Health Providers

Healthcare

5 Benefits to a Career as a Pharmacy Technician

Healthcare

How Digital Pharmacies Will Change the Industry

Healthcare

How to Become A Pharmacy Technician

Healthcare

Supporting Providers in the Age of Telehealth

Healthcare

12 Keys to Finding the Best Physical Therapist Insurance

Healthcare

When Are Lab Technicians Liable? Five Reasons to Carry Professional Liability Insurance

Healthcare

What Is and Isn’t Covered by Malpractice Insurance?

Healthcare

Why COVID Testing Labs Should Carry General Liability Insurance

Healthcare

Do Occupational Therapists Need Malpractice Insurance?

Healthcare

Can Lab Technicians Be Sued for Malpractice?

Cyber

5 Reasons Cyber Security Insurance Is Becoming More Important Than Ever

Healthcare

What Sort of Insurance Will Cover Physical Therapists?

Cyber

Helping Hesitant Patients Embrace Telehealth

Cyber

Why COVID Testing Labs Should Have Cyber Security Insurance in Case of a Data Breach

Nurses

GI Nurses and Associates Week: Highlight A GI Nurse Hero March 21-27

Nurses

What Malpractice Risks Do GI Nurses Face?

Nurses

What Kind of Nurse Should You Be? Check Out the Growing Field of Gastroenterology

Healthcare

6 Risks Lab Technicians Face Without Professional Liability Insurance

Healthcare

Do Contact Tracers Need to Protect Themselves with Professional Liability Insurance?

Cyber

Telehealth Rules Relaxed During Pandemic

Cyber

Telehealth is More Than Just Video Appointments

Healthcare

Pharmacists: Which Specialty Is Right for You?

Healthcare

Sued for Malpractice: A Guide for Nurses and NPs

Healthcare

A Guide to Medical Director Insurance and the Costs

Healthcare

2021 Trends to Look for in Occupational Therapy

Healthcare

Become a COVID-19 Contact Tracer

Healthcare

How Much Does Physician Assistant Malpractice Insurance Cost?

Healthcare

Lab Technicians: Is a Travel Job Right for You?

Home Health

Why Your Agency Needs Home Healthcare Insurance

Lab Technician

Covering Covid-19: Is Your Medical Laboratory at Risk?

Healthcare

A Complete Guide to Insurance for Physical Therapists

Healthcare

The Costs of Medical Staffing Agency Insurance

Home Health

Why Start a Non-medical Home Care Business

Healthcare

IV Nurse Day: Celebrate Jan 25

Healthcare

How to Become an IV Nurse

Healthcare

Charting by Exception: Errors by Omission or The Efficient New Norm?

Healthcare

Are You a Culturally Competent Nurse?

Healthcare

Risks of Abbreviations in Nurse Charting

Home Health

A Guide to Starting a Home Healthcare Business

Nurses

Nurses and The Good Samaritan Law

Cyber

Cyber Liability and HIPAA Compliance

Cyber

Why Hackers Love Healthcare Data

Cyber

Ransomware Rampant in Among Small Businesses

Cyber

What is the cost of a data breach?

General

NOW Insurance closes $2.5 million seed round, enhances AI-enabled platform

Cyber

Cost of a HIPAA Violation

Cyber

How to Create a Small Business Cyber Security Plan

Cyber

Small Business and Cloud Storage: Is Your Data Secure?

Cyber

Social Engineering: 7 Common Red Flags

Event Planning

Getting Liability Insurance for Events

Event Planning

Starting an Event Planning Business: A to Z

Event Planning

How Much Does Event Planning Insurance Cost?

Event Planning

Insurance for Event Planners: What You Need to Know

Event Planning

What’s Included in Event Planning Insurance Coverage?

Insurance Basics

What Can a Tax Preparer Be Held Liable For?

Insurance Basics

Tax Preparer Insurance 101

Medical Staffing

4 Nurse Staffing Issues to Avoid

General

What You Need to Know to Be a Tax Preparer

Insurance Basics

Insurance for Bookkeepers: A Complete Guide

Medical Staffing

How to Start a Nurse Staffing Agency

Insurance Basics

What is Liability Insurance for Bookkeepers?

General

How to Build Customer Relations in Your Business

Medical Staffing

A Guide to Medical Staffing Insurance

General

Developing an Effective Risk Management Plan

Insurance Basics

All You Need to Know About Therapist Insurance

Mental Health

What is Malpractice Insurance for Counselors?

Mental Health

Benefits of Therapist Liability Insurance

Insurance Basics

What’s the Average Counselor Malpractice Insurance Cost?

Insurance Basics

Risk and Hazards of Being a Massage Therapist

Insurance Basics

Do Nutritionists Need Insurance?

Insurance Basics

What’s Included In Massage Insurance Coverage?

Insurance Basics

Everything You Need to Know About Malpractice Insurance Coverage For Nutritionists

Insurance Basics

Do Massage Centers Need Insurance?

Insurance Basics

How Much Does Nutritionist Insurance Cost?

Insurance Basics

Insurance Plans For Nutritionists: Everything You Need to Know

Insurance Basics

Massage Therapy Insurance: A Beginner’s Guide

General

Coronavirus Outbreak: 3 Tips to Keep Your Healthcare Business Safe

General

Company Working From Home? Stay Safe of Cyber Attacks

Insurance Basics

Business Interruption Insurance and Coronavirus

General

4 Best Practices for Medical Workers During the COVID-19 Outbreak

Insurance Basics

Inside the Hacker’s Mind – Social Engineering

Insurance Basics

Do Consultants Need Insurance?

Insurance Basics

Fitness Center & Gym Insurance: A Beginner’s Guide

General

Should Your Company Work From Home During the Coronavirus Outbreak

Insurance Basics

Why Your Business Needs Wellness and Fitness Insurance: A Comprehensive Guide

Insurance Basics

What Is the Cost of Gym Insurance?

Insurance Basics

What Insurance Do Consultants Need?

Consultants

How Much Is Insurance For a Consultant?

Consultants

Benefits of Consulting Insurance Coverage

Healthcare

Pay as You Go Insurance for Healthcare Professionals

General

You Have Your Physician Assistant’s License: Now What?

Healthcare

Why Are You Still Buying Occurrence Malpractice Coverage?

Healthcare

What Does Malpractice Insurance Cost?

General

Physician Assistant Malpractice Coverage: A Practical Guide

Nurses

Do Student Nurses Need Malpractice Insurance?

Nurses

Ouch, You Hurt Me! Do Nurse Practitioners Need Their Own Malpractice Policy?

Nurses

What Type of Insurance Do Nurses Need?

Insurance Basics

Understanding Insurance Terms: Back to Basics

General

What Does Professional Liability Insurance Cover?

General

Types of Insurance Available for Small Business Owners

General

Potential Small Business Risks

General

General Liability Insurance: How to Keep your Business Protected

General

Choosing a Business Insurance Provider: Everything You Need to Know

General

Business Insurance Plans – Do I Need One?

General

Benefits of Professional Liability Insurance

General

What Is the Average Cost of Errors and Omissions Insurance?

General

What Is Cyber Liability Insurance?

General

What Does Errors and Omissions Insurance Cover?

Cyber

Cyber Insurance 101: Why You Need It

Cyber

What Does a Cyber Liability Policy Cover?

General

Errors and Omissions Coverage: What Is It & How Does it Work?

Cyber

What Is the Average Cost of Cyber Liability Insurance?

General

Who Needs Errors and Omissions Coverage?