The Fitness Industry Has Changed, but the Need for Insurance Remains
The fitness industry has been significantly affected this past year. An increased focus on mental health, along with restrictions resulting in a more sedentary lifestyle, has forced gyms to reevaluate existing services in order to accommodate the needs of members.
According to Bloomberg, 75% of consumers said they will return to pre-pandemic routines and the gym. Among that 75%, most said they would likely retain a hybrid between gym visits and virtual training.
This mindset has led to an increased focus on smaller, safer gyms due to the fears and restrictions surrounding large gatherings. Small gyms offer a less populated atmosphere, creating a more comfortable experience and helping to ease the minds of members. These gyms have also placed an increased emphasis on virtual classes for those wary of using equipment in person or in heavily trafficked, large fitness centers.
The characteristics prevalent to these exposures require careful risk management. Small fitness centers require coverage for a variety of exposures, including property, general liability, professional liability, and abuse and molestation.
Take the following general liability and abuse and molestation claims as examples:
- A customer slipped and fell in the entranceway of a small fitness center due to the floor being wet from the rain. The customer sustained a non-displaced fibular fracture and sued the fitness center for $12,000 in medical expenses and lost wages.
- A member sued a fitness center, alleging the negligent hiring of an employed instructor who exhibited inappropriate behavior when training the member. The cost to defend the claim was $17,000.
With the shift in the industry to smaller, safer fitness centers, it is necessary to evaluate the appropriate coverages for all aspects of the services they offer.
USLI’s Fitness Center product offers the following key advantages:
- Professional liability coverage and abuse and molestation coverage included for no additional premium
- Expanded definition of bodily injury to include sickness or disease caused by mental anguish or emotional distress
- Club members automatically included as additional insureds
- Defense costs provided outside the limits
- Ability to consider 100% virtual operations
With quotes available online, over the phone or through your USLIs underwriter, it is easy to take advantage of our minimum premiums and ease of doing business for your fitness center risks.
For more information or a quote, please contact your Commercial Lines underwriter.
As always, thank you for your support and business.
Contact Bridget Cullen,
Assistant Vice President, Underwriter | 888-523-5545 Ext. 2151
Written by Jacob Dawson
September 2, 2021