How to Open a Gym Business Insurance

Every how to open a gym needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.

This article will cover the main types of business insurance and help you find the best how to open a gym insurance.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a How to Open a Gym

The most common and comprehensive type of how to open a gym business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While a how to open a gym isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your how to open a gym is sued, you could face fees totaling hundreds of thousands of dollars (or more).

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Cost of General Liability Insurance

The average gym in America spends between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a how to open a gym to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Common Situations That General Liability Insurance May Cover for a How to Open a Gym

Example 1: Gyms contain a lot of heavy equipment and weights. If a patron of your exercise facility gets injured on a piece of equipment, they could file a lawsuit in order to get compensation for their medical expenses. In this instance, your general liability insurance (GLI) covers certain related expenses to the injury and any associated lawsuits.

Example 2: Personal training and fitness classes are generally covered by the completed operations clause in your GLI insurance policy. In a patron slips and falls, your GLI policy may cover the costs associated with treating the injury. If a lawsuit arises from the covered event, your GLI policy may help cover lawsuit-related expenses, including settlements and attorney's fees.

Example 3: Gyms often seek out the newest and most effective pieces of exercise equipment, including stair-steppers, all-in-one machines, and weightlifting benches. In some instances, that new piece of equipment may be defective, and if a patron is injured on that defective equipment, you could be responsible for those injuries. Your GLI insurance may help pay for the injury-related expenses and expenses related to any lawsuits.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage How to Open a Gymes Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all gyms should obtain:

Commercial Property Insurance

Commercial property insurance protects your building and the property inside your building if it is damaged by a covered event. Common events that are covered under this policy include fire, theft, and vandalism.

Workers’ Compensation Insurance

Workers’ compensation pays for employee injuries that occur while they are working. For example, if one of your employees is moving a piece of exercise equipment and accidentally pulls a muscle or drops the equipment on their foot, your workers’ compensation policy pays the medical bills associated with your employee getting treatment for his or her injuries.

In addition to the policies outlined above, there are a few other types of coverage your gym may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Commercial Umbrella Insurance

Commercial umbrella insurance is a type of supplemental policy that pays for insurance claim overages. For example, if your gym experiences a lawsuit and it exceeds your policy limitations, you could be held liable for paying the costs that are in excess of the maximum authorized payout amount.

Commercial Auto Insurance

If your gym provides vehicles for your employees in order to attend events or hold personal training sessions at other locations, you will need a commercial auto insurance policy. These policies pay for vehicle damage and medical expenses that occur while your employee is driving in the company vehicle on a work-related task.

Cyber Liability

Cyber liability insurance protects your business against claims that are the result of customers’ personal data being stolen by hackers.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your how to open a gym:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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How to Open a Gym Business Insurance FAQ

Can I buy business insurance online for my how to open a gym?

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a how to open a gym?

You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my how to open a gym from everything?

Not necessarily. Certain exceptions may be written directly into your how to open a gym insurance policy, and some perils may be entirely uninsurable.

Is general liability the same as business owners?

A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.

How do I choose the best general liability insurance?

The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles. 

However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.

Do I need business insurance if I already have an LLC?

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.

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