As a gym owner, you may be required to secure a health club surety bond. It is important to understand what a bond really is and how it differs from general liability insurance. Surety bonds protect the interests and investment of the consumer, while the general liability insurance protects you, the gym owner, from the financial effects of a lawsuit.
Q: Why do I need a health club surety bond?
A: In many states, health club owners must be bonded. This type of bond protects the customer of the health club. If your club does not make good on your customers’ prepaid membership due, a claim can be filed against your bond. Health club owners are required to be bonded so if any fraudulent or illegal actions are committed by employees or owners of the health club, the customer will note take the financial loss.
Q: What are my state requirements?
A: Most states require a bond for each health club location. State laws should be checked to determine whether or not a bond is required. The state will also outline the value of the bond and the length of time it needs to be in place. Fitness Insurance can help you research the requirements.
Q: How much does a bond cost?
A: Bond premiums are usually a small percentage of the bond amount. They can vary by applicant and bond amount.
Q: I need to purchase a different type of bond. Is that something Fitness Insurance can help me with?
A: Yes! Fitness Insurance can help you secure many type of bonds in addition to health club surety bonds including construction bonds, performance guarantee bonds, utility bonds, notary bonds and more!