CrossFit Risk Rentention Group

You chose to open a CrossFit gym because you believe that you can help others work hard to build a healthier lifestyle through exercise. You aren’t alone. Around the world, there are more than five million people practicing CrossFit to improve their health and lose weight. There are more than 5,000 CrossFit gyms in the United States alone.

As a CrossFit gym owner, you’re also a small business owner with a lot to do on their to-do list. You know that you need CrossFit affiliate insurance to protect your investment if there’s an accident, injury, or some other catastrophic event. You have questions.

While you don’t mind paying your fair share in taxes, you don’t want to pay a penny more than you need to spend. You know that there are items that you can deduct from your taxes and wonder if CrossFit affiliate insurance is one of them. Here’s your guide to affiliate insurance and tax deductions.

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What Is CrossFit Affiliate Insurance?

As a licensed CrossFit gym owner, you’re required to purchase insurance and name CrossFit as an additional insured party on your policy. The license you get to use the CrossFit name is basically a stamp of approval from CrossFit.

If there’s an accident or injury at your gym, the lawsuit might include CrossFit because they licensed your gym. CrossFit affiliate insurance protects both your gym and the CrossFit name if something unexpected and unavoidable happens.

Here’s a look at its coverage:

Professional Liability:

  • $1,000,000 per occurrence
  • $3,000,000 annual aggregate
  • Communicable disease limit of $250,000

General Liability:

  • $1,000,000 per occurrence
  • $3,000,000 annual aggregate
  • Medical expenses – $5,000 per person
  • Personal and advertising injury limit – $1,000,000
  • Damage to rented premise limit – $300,000
  • Annual aggregate-general liability – $3,000,000
  • Abuse and molestation occurrence/aggregate limit – $100,000
  • Communicable disease limit – $250,000

With a CrossFit RRG policy, you can get the affiliate insurance that you need to meet the requirements of your license and to protect your gym if something happens. The cost of a policy with CrossFit RRG is $1,185 per year for gyms making less than $125,000 in revenue. Also, CrossFit RRG is a community-based company and requires you to have a membership that costs $1,000, which you can pay over five years as long as you pay $50 annually.

Is CrossFit Affiliate Insurance Tax Deductible?

It was Benjamin Franklin who originally said that the only two things guaranteed in life are death and taxes. He was right. Every quarter and once a year, you have to send a check to the Internal Revenue Service (IRS) for taxes withheld from employees’ paychecks and a percentage of the amount you think you might owe in taxes at the end of the year. You want that amount to be as low as legally possible.

As a business owner, you probably look at each expense you have and determine if it’s tax deductible before proceeding. While you can’t deduct the full amount from your tax bill, with CrossFit affiliate insurance, you can deduct the amount you pay in premiums as a business expense from your taxable income.

For example, if your taxable income is $25,000, and you spent $1,000 on CrossFit affiliate insurance, you can reduce the amount of your taxable income to $24,000.

This helps you pay less in taxes while protecting your business from lawsuits and judgments for accidents and other injuries. Other business expenses that you can deduct from your taxable income include:

  • Staff salary
  • Mortgage or rent payments
  • Office supplies
  • Utilities
  • Insurance
  • Equipment
  • Advertising
  • Cleaning supplies

The IRS is very generous in their business expenses, and you can make almost each business expense tax deductible from your taxable income.

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Other Benefits of CrossFit Affiliate Insurance

Of course, you want to save money on your taxes, but you don’t mind if there are other benefits that you enjoy from your insurance coverage. Here’s a look at some additional benefits along with the ability to use it as a deduction on your taxes:

Protection of Your Investment and Cash Flow

No matter how careful you are or how much training your staff has, it only takes seconds for an accident or injury to occur. When this happens, the injured party might sue your CrossFit gym for damages and medical bills.

With CrossFit affiliate insurance, you have someone on your side. The insurance will cover the cost of the lawsuit and any awarded judgments. In some cases, they might pay a settlement before the case goes to court.

Without affiliate insurance, you’d have to pay this money out of your revenue. It can hurt your cash flow and, in some cases, force you to close the gym because you don’t have enough money to cover the judgment.

Someone to Fight on Your Side

When your CrossFit gym is hit with a lawsuit, it can be a scary idea. However, with CrossFit affiliate insurance you have someone to fight on your side. The insurance company will take over the case after you notify them.

The insurance company will assign a lawyer to handle your case. You might need to answer questions, give a deposition, and appear in court, but the insurance company’s lawyers will handle the case. You can get back to doing what you do best — running your CrossFit gym.

Compliance With Local, State, and Federal Laws

Depending on where you live, you might be required by local, state, and federal laws to carry a certain level of liability insurance. This is for your protection as well as your customer base.

In some cases, a CrossFit gym owner used a startup loan to open their small business. If that’s the case, the lender may require you to carry a certain level of insurance to protect their investment.

CrossFit affiliate insurance is necessary and a wise decision for all CrossFit gyms. The best part is that you can deduct the expense from your taxable income. Contact us today to learn more.



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