From professional liability insurance to workers’ compensation, learn how to understand and purchase the right insurance for your sports and fitness business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Sports and Fitness Business Insurance Basics
Types of Sports and Fitness Business Insurance
Who needs sports and fitness business insurance?
All sports and fitness businesses can benefit from some form of business insurance coverage, and in fact, some minimum levels of liability coverage may be a requirement of doing business. In the sports and fitness world, physical injury is top of mind, and protecting your business, as well as your employees and clients, against the consequences of bodily injury is an important part of managing business risk. Other liabilities and risks, from property damage to cyber threats, may be applicable to your specific business as well. Ensuring that your business has the right set of insurance policies is a crucial step in building a comprehensive risk management strategy.
If your sports and fitness business meets any of the following criteria, you should consider purchasing business insurance:
- You provide professional services, advice, or instruction
- You own or lease office or retail space
- You work at customer homes or offices
- Your business owns valuable property, such as specialized fitness equipment
- You employ others
- You store sensitive customer or employee information
- Your business facilitates high-risk physical activity
Sports and Fitness Business Insurance by Profession
Why is sports and fitness business insurance important?
Accidents and injuries can happen, especially in the sports and fitness field.
Benefits: Business insurance can provide financial protection in the face of unfortunate accidents or injuries. If a client is injured as a result of your professional instruction, professional liability insurance can protect you against any lawsuits. If someone is injured on your business property, general liability can provide coverage. And if an employee is injured in the course of their work, workers’ compensation insurance can provide financial and medical benefits for them.
Risks: Without insurance, a single accident or injury could put your entire business at risk. If your business is unable to come up with the funds to pay for damages or pay the legal fees necessary to defend your business, you may need to sell your business assets or declare bankruptcy.
Owning or leasing a commercial space opens your business up to a number of risks.
Benefits: Business insurance can protect your business in case anything happens to your business property. If you own a gym or rent studio space, commercial property insurance can provide funds to repair or replace business property that is damaged by a covered peril, including fire, theft, vandalism, and more. If your business needs to shut down temporarily due to property damage, business interruption insurance can provide funds to cover lost income and operational expenses.
Risks: If your business heavily relies on property or equipment, not having property coverage can put your company at severe risk. If a natural disaster occurs or if your commercial space is burglarized, you may have difficulty recovering financially on your own. Without insurance, you will be picking up the entire cost of repairing or replacing damaged or lost property, and if your business is forced to shut down temporarily, you will need to pay out of pocket to keep your business going.
Certain types of business insurance may be required in your state.
Benefits: In most states, companies are required by law to carry workers’ compensation insurance. Even in the safest conditions, accidents can happen, which is why insurance is a necessary solution. If an employee is injured while working for you, insurance will cover you financially as well as make your business compliant with the law.
Risks: Without workers’ compensation, your organization is wide open to financial loss should a worker get injured or sick as a direct cause of working for you. Moreover, multiple injuries could lead to financial losses that ruin your business. As many places make workers’ compensation part of the law, avoiding the coverage can land you in legal trouble resulting in penalties, fines, and in some cases, imprisonment.