Matt Hands, VP, Insurance and MoneySense
Health and fitness insurance is a specific type of business insurance that protects owners in the wellness industry from the risk factors of day-to-day operations. This covers the general risks for any type of business, such as property damage or theft, but it also encompasses specific circumstances in health and fitness, such as sporting injuries.
Three common insurance policies for health and fitness businesses are:
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Whether you’re a personal trainer or a martial arts instructor, an accident or injury is not uncommon in your line of practice. The risks to your business can be reduced with insurance, so any commercial owner in the health and fitness industry should consider purchasing a business insurance policy specific to their health & fitness business needs to remain financially sustainable in the long run.
This includes the following types of health, sports and fitness businesses:
- Fitness gyms
- Martial arts gyms
- Boxing gyms
- Climbing gyms
- Dance studios
- Pilates studios
- Yoga studios
- Personal trainers
- Private instructors
- Sports instructors
- Health coaches
General Liability Insurance
Professional Liability Insurance (E&O)
How much does sports and fitness insurance cost?
Expect to pay anywhere between $300 annually, for a private small-scale business, and $5,000 annually, for a larger-scale fitness center. The cost of health and fitness insurance depends on the level of risk your business brings as well as your chosen insurance package.start my quote
Commercial property insurance protects your business property, including the contents within it, such as gym equipment and inventory. Damage caused by flood, fire, vandalism, or theft can be covered with this policy.
Commercial property insurance is highly recommended if you operate on your own property as any uninsured damage to your location could prevent the business from running. If you’re just renting a studio space for your classes, however, contents insurance is enough to protect your physical assets because your landlord is in charge of the building, and your CGL will protect you if are at fault for any damage.
Although all health and fitness industries present some level of risk, it’s clear that some businesses are far riskier than others in terms of personal injury and equipment. So a fully-loaded gym with weight racks, machines, and cardio equipment will cost more to insure than an at-home pilates instructor.
Operating a couple of large-scale gym locations in the city versus owning one local dance studio presents a significant difference in risk. The larger your business operations, the higher the quote as more property and assets will need to be protected.
Like any business, the location of your gym will impact your gym insurance quote. Areas with high crime rates can result in a higher quote as well as other location-based risks such as earthquakes and flooding.
Having experience in any business is a good sign of lower risk. In health and fitness industries, experience is key to reducing claims of professional liability by lowering the risk of an accident. Therefore, the more experience you have in your health and fitness field, the lower the insurance rate.
Training, education, and certification
Like your experience, your level in training, education, and certification can also impact your insurance quote. Having the proper knowledge and credentials can reduce your risk of a claim, therefore lowering your insurance rate.
Business insurance history
If you’ve had many past insurance claims before, it’s likely that your quote will increase because of this. Your insurance history gives your insurer an outlook of what may be to come, and having a troubled history shows higher possibilities of protection needed in the future.
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Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio
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