Owning a CrossFit gym might be your dream, but dealing with the business side of things like getting insurance probably isn’t. It’s still a necessary evil, however. If you’re just opening a CrossFit gym, you might wonder why you actually need insurance, and what types are available to you.
WHY DO PERSONAL TRAINERS NEED INSURANCE?
The obvious answer is to prevent a lawsuit. It’s one of the less fun aspects of owning a gym, but it’s true.
It’s all too easy for your members to get injured. Whether they pulled a muscle lifting weights too heavy for them, or they tripped walking through the door, you don’t want to be held liable.
That’s where the insurance part of owning a gym comes in.
AM I REQUIRED TO GET INSURANCE?
Yes, CrossFit requires all affiliates to carry General Liability and Professional Liability insurance.
According to Iron Bull Strength, common CrossFit injuries include wrist strains, tennis elbows, Achilles tendonitis, lower back injuries, iliotibial band syndrome, patellar tendonitis, shoulder rotator cuff tears, hernias, herniated discs, and neck injuries.
Many of these injuries can not only prevent your client from training for weeks, but it could keep them out of work. If you don’t have insurance, you’re covering that cost out-of-pocket.
GENERAL LIABILITY INSURANCE
A general liability insurance policy is a must-have if you own the gym. According to TRUiC, it will help cover things like bodily injury, property damage, medical payments, personal and advertising injury, and legal defense and judgment.
While it might make you uncomfortable to think about things like that, it could happen. That’s why it’s better to be prepared.
Let’s say that one of your clients injures her back while she’s bending. Now she can’t go to work for three weeks. With general liability insurance, she gets her wages and medical treatment fees covered.
PROFESSIONAL LIABILITY INSURANCE
General liability insurance is great, but there are other forms of insurance that you should consider. Professional liability insurance isn’t required, but it can definitely help in a pinch.
This insurance covers you when you give clients advice. While you may explain a move carefully and even demonstrate, your client may perform the move incorrectly, and become injured. If that happens, the client could try to sue on the basis of negligence due to human misunderstanding or error.
If you find yourself in this situation, then your professional liability insurance would kick in and cover your legal fees and settlements.
COMMERCIAL UMBRELLA INSURANCE
General liability insurance is great, but it does have its limits. When you’ve exhausted all your resources under the general liability, commercial umbrella insurance kicks in, making sure that any extra expenses are covered.
PRODUCT LIABILITY INSURANCE
If you’re interested in taking your CrossFit gym to the next level by selling other products, then you seriously need to consider getting product liability insurance. It covers you in the event that something you sold leads one of your clients to become injured.
Let’s say you’re selling smoothies, and a client buys one. Then they break out in hives due to a previously undiagnosed allergy. They didn’t know they were allergic, and neither did you. They could make the argument that your product led to them getting sick, however.
With product liability insurance, you’ll be protected. All your fees will be covered. The best part is that you can specify it to the products you are selling.
DO MY EMPLOYEES NEED INSURANCE OF THEIR OWN?
If you own the gym, then it might seem like a given for you to get insurance. The question is, do your personal trainers working under you need insurance?
According to Exercise.com, “If the trainers are self-employed and rent space from the gym, the gym’s insurance policy doubtfully covers claims against them. New and even experienced personal trainers may not think about matters related to liability insurance. Such an oversight can prove disastrous if ever found at fault for a client’s injury. Liability insurance protects professionals whose assets could be at risk after a mishap.”
It’s another case of better safe than sorry. Why take a risk when you can know you’re covered no matter what happens?
HOW MUCH IS IT GOING TO COST ME TO GET INSURANCE?
There are a ton of variables to take into consideration, so while you might get a quote, you need to speak to an agent to find out exactly how much it’s going to cost you.
Just like when you first got your driver’s license, and your car insurance rate was much higher than your parents, the same applies to personal training. If you’re new to the field, you’ll pay more than someone who has been training others for the past 20 years.
You also need to keep in mind that location comes into play. If you live in a rural area, you’re probably going to pay less than someone who owns a gym in the nearby city.
Working fewer hours might be a way to get a lower premium. Providers will see you as lower risk since you aren’t working with clients as long. In other words, there’s less chance of injury if you’re not training anyone. If you work full time, your premium is probably going to be higher.
If you have an excellent record with none or very few claims, you can probably negotiate a better deal. It’s not a guarantee, but it helps when you have a sparkling record to show that you know what you’re doing.
The price range for insurance can be anywhere from $200 to $500 for individual trainers, and around $1,500 annually for affiliate owners. While that might seem expensive, especially if you’re just starting out, please consider that it is cheaper than having to pay someone else’s medical bills due to an injury that happened in your gym.
At CrossFit RRG, we specialize in helping those in the CrossFit industry. We know what you do, and can help you avoid any pitfalls that comes along with running the business side of things. Contact us today for a quote and more information on how we can help.
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By partnering with NEXO, you can offer your clients the peace of mind that comes with knowing they have the right insurance coverage in place. To learn more about NEXO Insurance Services and how they can help you grow your business, visit our Agents & Broker website or contact us today.