There are close to 75% of U.S. businesses that are underinsured. Being underinsured is often times not intentional. It has been found that many times businesses are underinsured due to misunderstanding the insurance requirements or an error in calculation rather than an intentional attempt to save cost. It is important to understand the needs of your business as well as understanding your insurance policy and the limits you have been advised to choose.

Umbrella Insurance

Umbrella Insurance is additional liability insurance that provides coverage above your current limits. It is designed to help protect you against lawsuits and major claims and in turn will help protect your future and assets. It is imperative that fitness facilities consider purchasing umbrella coverage. GO BIG - The difference in premium when having $1,000,000 in umbrella coverage as opposed to $5,000,000 is minimal, therefore making it an easy decision to choose a bigger limit to be on the safe side. 

Liquor Liability

Many fitness facilities have cafes which may serve alcohol, but may not have the proper training for the employees serving the alcohol. If a patron is served too much alcohol you would think that he would be responsible for his actions and have to pay. The fact is that the establishment that served the alcohol could be liable for damages, injuries, or both that happened as a result of behaviors, conduct, or actions of the person who drank too much. It is important to invest in liquor liability insurance but as a business owner it is just as important to be proactive in limiting alcohol-induced claims. By enforcing safe alcohol and serving practices, you can greatly diminish your chances of dealing with unwanted claims. A great way to do this would be to train your employees to refuse serving alcohol to overly intoxicated persons, ensuring strict measuring of alcohol in mixed drinks, and encouraging patrons who are drinking to have a designated driver or a taxi.

Equipment Breakdown

Equipment is a key part of running a successful gym. When equipment breaks down, it can bring your business and income to a halt. Equipment Breakdown insurance covers the sudden and accidental, physical damage to equipment that requires its repair or replacement. It will provide coverage caused by Mechanical Breakdown, Centrifugal Force, Steam Explosion, Short Circuits, Electrical Arcing, and Power Surges and it can also pay for Direct Property Loss (the cost to repair or replace damaged equipment), Expediting Expenses. Loss of Business Income, Service Interruption, and Spoilage due to a covered equipment breakdown. Think about the loss of income your facility would suffer if say your electricity or air conditioning shut down due to equipment failure? Equipment breakdown is a coverage you should look at closely with your agent to be sure you are protected for special circumstances that may affect your gym. 

These are just three ways your fitness facility may be underinsured. If you have questions or would like a full review, please contact us to have a Fitness Insurance representative get to work for you.