CrossFit Gym Insurance: How Much Do You Need, and What Does It Cost?
There’s a lot going on in a CrossFit gym. While instructors are trained to keep everything safe, in such a busy environment, accidents can happen. While all businesses are required to carry general liability insurance for accidents that occur under on their site, there are plenty of options for insurance to protect your employees, your guests, your equipment, and any other part of your investment in a CrossFit Gym.
Liability Insurance for CrossFit Gyms
Liability insurance is the most basic of all insurance and any CrossFit gym will typically be legally required to carry a liability policy. As with most insurance plans for CrossFit, using a provider who specializes in the fitness industry offers you a specific policy, customized to your needs. As your needs and liabilities differ greatly from most businesses, a specialized CrossFit insurance provider can get you a better deal with more comprehensive coverage. Doing business with someone familiar with your industry is priceless, especially in CrossFit.
Liability insurance is required by law in many states because any business could incur financial liability in certain circumstances. Without proper liability coverage, one lawsuit or injury claim could destroy a business with astronomical bills. Liability insurance is an affordable protection from this risk, with most CrossFit gyms in the country paying $1,185 for general liability insurance.
Protections offered by liability insurance:
- Protection from legal action incurred during the operation of a business
- Coverage of any damages owed to patrons from accidents or negligence
- Legal defense fees if necessary
Workers’ Compensation Insurance
Workers’ compensation insurance (often referred to simply as Workers’ comp is absolute must-have insurance coverage for CrossFit gyms. Workers’ comp is protection that is required by law for all businesses to maintain for any employees in their organization. In CrossFit, this is more important than just a legal imperative.
Workers’ comp offers protection and compensation for employees hurt during the course of their normal job functions. As you can imagine, this is very important in the CrossFit environment. As your employees and instructors are commonly participating in high-intensity workouts and activities, you want to make sure they have excellent protection if they are injured. While workers’ comp is usually very reasonably priced, its pricing can vary greatly depending on state regulations and prior claims. You won’t be required to provide this for independent contractors, partners, or yourself but it’s still not a terrible idea to consider.
What determines the cost of worker’s comp:
- Prior claims. The more often employees claim worker’s comp, the more your risk factor raises and so does the price.
- Safety training, regular equipment maintenance, and safety regulations (like proper footwear) can lower your worker’s comp premiums.
- Whom you employ. Every $100 of regular payroll will increase your workers’ comp rate, as more employees require more protection.
Almost an essential for CrossFit gyms, property insurance can go far beyond just protecting land and a building when designed by an insurance partner who understands the fitness industry. Property insurance plans customized for CrossFit can offer protection from a number of issues and are often easily bundled with general liability insurance. This is an area where working with a provider familiar with the needs of fitness really pays off. You don’t just make money with your building, but with valuable and essential equipment within it. While liability insurance typically protects you from legal jeopardy, property insurance protects the infrastructure essential for your business and can protect you from catastrophic losses.
What’s covered under property insurance:
- Broken glass, facility disrepair, water damage or fire
- Theft or robbery
- Lost revenue compensation as a result of a covered event.
Other types of coverage
There are many other types of coverage that can help you protect your assets and the wellbeing of your team, patrons, and business. While many of these peripheral options come down to specific circumstances, many gym owners will want to at least consider their options with them. Insurance is about limiting risk to an acceptable amount, so it will always depend on what risks you’d like to avoid and what risks you are ok taking.
Yet again, working with an insurance provider who is specifically involved in the fitness community offers you a significant advantage here, as they will often be able to bundle together the best protections for your specific industry.
- Employment Practices Insurance –This type of coverage offers specific protection against human resources issues. Wrongful termination, sexual harassment claims, or discrimination cases are commonplace in a fitness environment. This coverage protects against those claims.
- Special Event Insurance- These plans typically cover short-term events that go beyond the normal functions of the business. When you are holding events that would typically go beyond the risks you reported in day-to-day business, these policies give you the extra protection you need quickly.
Choosing Coverage and Bundling Policies
Working with an insurance provider who’s familiar with the CrossFit community has significant advantages in choosing policies. Insurance is complicated, but the right provider as a partner can guide you to exactly what you need to minimize risk and cost to yourself. While extra costs to running your business are always troublesome, proper insurance for your CrossFit gym is worth it. Costs will vary greatly depending on the location, size, and traffic of the gym, and the value of the property the gym is built on and bundling policies can easily reduce the costs of individual plans. For most CrossFit gym owners, however, this tends to be a very small part of operating costs and is a welcome freedom from worry about the unexpected derailing their way of life.
CrossFit Risk Retention Group
CrossFit Risk Retention Group exclusively works with the CrossFit community. We understand the risks and hardships that affiliate owners and trainers, deal with on a daily basis, and we have a vested interest in seeing our community succeed. We provide comprehensive coverage that can be customized to your specific circumstances and needs at a great price. Why go outside the CrossFit community for coverage when over 2500 member affiliates already trust our results. Don’t wait, contact us today and find out how we can help manage your risk and help your CrossFit gym succeed.