Why Insurance for Gyms and Health & Fitness Centres is Critical

The past few years have been challenging for businesses in the health and fitness industry. Covid-19 forced many gyms and exercise centres to temporarily (and in some cases permanently) close to curb the spread of the virus. Thankfully, most of these restrictions have since been lifted. With an estimated two-thirds of South African adults doing some form of exercise, there’s a good chance they could be heading to you or one of the 42% of independent and private centres that make up the local market. If you fall into this category, you'll know how quickly things can change for your business. 

Fortunately, issues such as public liability, theft and business interruption insurance are things that insurance for gyms can safeguard against. Keep reading to discover how DialDirect can guide you through the process.

What is insurance for gyms?

It’s a common misnomer that the insurance for gyms is restricted to the traditional gym with its booming music and rubber floors, and dozens of weights, treadmills and personal trainers. While these businesses fall into the category, so do many others. You may not know that gyms insurance can include health and fitness centres that offer group and individual indoor and outdoor activities or specialised classes with trained instructors. This can range from one-on-one pilates classes to self-defence kickboxing classes for groups of up to twelve. There are even dedicated cycle labs for those who are into mountain biking or road racing. 

Insurance for gym facilities can cover your business, no matter what kind of exercise or movement-based service you offer to third parties. However, what suits some in the gym and fitness industry might not be the best gym insurance for your unique business! That’s why it’s best to tailor-make your gym insurance to fit your business’s needs.

Why should a health & fitness centre have insurance?

All businesses need insurance coverage. Now that you know what kind of business can benefit from sports club liability insurance or fitness business insurance, you’ll want to know what this type of insurance covers.

Any business with multiple people spending time on its premises faces the risk of someone getting injured or having their property damaged. This can happen despite your best efforts to prevent it from taking place. Some fitness centres will face a higher risk of potential accidents than others. For example, a ballet studio that doesn’t use equipment and involves low-intensity barre work will pose a lower risk to clients than a weightlifting studio where people use potentially dangerous and heavy barbells and weights. 

It's important to understand that having this type of insurance isn’t an admission of guilt should an accident take place. It also isn’t a sign that your business premises are unsafe or that you aren’t equipped to offer a service. The reverse is true – having this type of insurance is evidence that you take your professional role seriously. And although the reality is that liability-related accidents are rare, if they do occur, they can be costly enough to put you out of business for good.

Similarly, an unforeseen disaster, such as the Covid-19 pandemic, can impose huge financial losses on your business that would be hard to survive without the relevant business insurance.

What kind of insurance do gyms need?

No two businesses are identical so you will face unique concerns and risks. For this reason, a range of insurance products exists for business owners to choose from. Public liability insurance, for instance, can cover you for accidents that take place on your premises. Here are a few others that might be relevant to your operations:

• Commercial property: This can cover the building where you operate and its surrounds. It covers you in instances of theft as well as deliberate or accidental damage to the property, its equipment or its vehicles. It can cover your intangible business assets (such as intellectual property) and sometimes include workers’ compensation. For example, should your gym experience a break-in that results in the computers being stolen and windows shattered, it will cover the repair and replacement costs.

• Business interruption: This can cover some of the costs you face should the business be unable to operate for a certain period under specific circumstances. It can cover your business's rent, salaries and other regular financial obligations. An example of how this could benefit you can be seen by considering the recent floods that impacted KwaZulu-Natal, costing local businesses a staggering R7 billion[1]. Should this happen to your business, commercial insurance would cover the cost of restoring your business to its original state, while interruption insurance would help you honour your financial commitments until your business can operate again.

Gym insurance cost: how much insurance do you need?

Gym insurance costs are likely to vary depending on many factors. Generally speaking, the larger your business and its premises, the more you can expect to pay monthly. This will also be impacted by the factors listed below:

•         Geographic location

•          Number of employees

•          Number of members/clients

•          Revenue generated monthly/annually

•          Equipment (estimated retail cost)

•          Property (owned or rented)

•          Services offered (level of risk)

•          Claims history (with past insurers)

The more detailed and accurate this information is, the more accurate your insurance quote is likely to be.

Get insurance for gym facilities from DialDirect

Choosing the best gym insurance for your business is a major decision and not one you want to make without all your questions being answered. As insurance experts, the DialDirect team is well-placed to help you select the right coverage you need to keep your business profitable and secure for years to come. For further information, get in touch with us today.

Sources:

[1] Reliefweb: Damage to KZN companies estimated at R7 billion

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.