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Swim Club Insurance

Business Insurance for Swim Clubs

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From water aerobics classes to competitive swim training, swimming clubs provide multiple opportunities for members to engage in rigorous exercise, take part in a team sport, or learn a very valuable life skill. While running a swim club can certainly be rewarding, there are many risks involved with this type of business. As such, it is essential to maintain a comprehensive range of insurance coverage to protect your business from hazards you may be held liable for. 

What insurance coverage do I need for my swim club? 

There are many types of insurance coverage to consider, but these policies are particularly relevant to swimming clubs:

General Liability Insurance 

General liability insurance covers incidents of third-party property damage, bodily injury, personal injury, and advertising injury. With a high number of visitors to your premises and many physical hazards involved with swimming, general liability insurance financially protects your swimming club by covering medical expenses and legal fees associated with third-party claims. After all, students, spectators, and other third parties are all at risk for slip-and-fall incidents, illnesses stemming from pool-borne bacteria, heat-related illnesses, and even accidental drowning. 

In addition to these physical injuries, general liability insurance covers third-party bodily injury or property damage resulting from product liability. If your swimming club provides food concessions or sells swimming gear, you could be held liable if a customer is injured or becomes ill. 

General liability insurance can also protect your business from lawsuits based on non-physical injuries. These claims include copyright infringement in advertising, slander, and libel. 

Examples: 

Professional Liability Insurance

If your swim club employs swim instructors or coaches, your business may face several liability risks. Your clients place a lot of trust in your instructors, but even a single mishap during a swim lesson can put your business on the wrong end of a claim. Professional liability insurance covers the costs of lawsuits and damages related to the professional advice and services that your swimming club provides. 

Perhaps one of your swim instructors suggests swim techniques that aren’t appropriate for a client’s abilities or pushes a member beyond their limits and causes a physical injury. These clients may file a lawsuit against your business for negligence. Professional liability insurance can protect your business in this instance and  cover your legal fees and any settlements or judgments against you. 

Example: 

Workers’ Compensation Insurance

Workers’ compensation insurance provides financial and medical benefits to your employees if they are injured or fall ill as a result of their work. Workers’ comp can also provide funeral, burial, and death benefits to dependents in the case of a work-related death.

Patrons of your swim club are not the only ones who are at risk for injuries. Employees of your swimming club are just as susceptible to strains, slip-and-fall incidents, and back injuries while training, instructing, or watching over your clients. Even maintenance employees are exposed to pool chemicals which may result in contact dermatitis, as well as lung and respiratory illness. Workers’ comp can pay for medical expenses, rehabilitation, lost wages, and sometimes even vocational training. Depending on the severity of an injury, an employee may be eligible for benefits during the period of recovery, or in cases of permanent disablement, for life.

Each state has its own regulations and requirements for workers’ comp, so it is important to understand your state’s requirements to ensure that you have adequate coverage for your employees.

Example: 

Commercial Property Insurance

Because your swimming club relies almost entirely on your pool and swimming equipment,  purchasing commercial property insurance is important to protect the value of your business’s property. If an unexpected disaster damages or destroys your property, it can be difficult and expensive to recoup your losses. Commercial property insurance can help your company recover if your property is damaged. Commonly covered perils include fire, theft, vandalism, windstorm, and water damage.

Example

Business Income Insurance 

Business income insurance (also known as business interruption insurance) provides coverage for loss of income and operating expenses if your business must temporarily close to recover from physical loss, damage, or destruction by a covered peril. This coverage includes a business’s net profits and normal operating expenses such as rent, employee salaries, and taxes. 

Swim clubs are entirely reliant on functioning swim equipment and an open business location, so any damage to your business property directly impacts your ability to operate. With a lack of backup facilities easily available to rent, it is essential for swimming clubs to have the necessary preparations in the event of an interruption of business. 

Example:

Additional Coverages

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a swim club with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for swim clubs:

ProviderGeneral LiabilityProfessional LiabilityBusiness Owner's Policy
Embroker??????
CoverageSmith??????
CoverWallet??????
Hiscox??????
Thimble??????

Business Insurance and Coronavirus

Swimming clubs have not been immune to the major impacts of COVID-19. Business owners are likely wondering how insurance can provide coverage during the pandemic. It is important to note that you cannot purchase a new policy to cover coronavirus-related losses that have already occurred. 

If you have business interruption insurance, the losses you’ve suffered from temporary closures due to COVID-19 are not typically covered. Unless your policy specifically includes coverage for losses caused by communicable or infectious diseases (which is rare), your business interruption policy will likely only cover losses caused by a direct physical loss or damage.

Workers’ compensation for COVID-19 greatly varies depending on the state. If your employees contract COVID-19 while working, they may be eligible for workers’ compensation payments in some states.

If a client or other third party sues you claiming that they contracted COVID-19 after visiting your business, some commercial general liability policies will provide coverage. Once again, this depends on your individual policy and the laws of your state.

Consult our FAQ on coronavirus and business insurance for more information.

Final Word 

For years, swimming clubs have provided exercise and recreation for people of all ages. These indoor and outdoor facilities host team events, competitions, water polo matches, water fitness programs, and swim lessons. Your swimming club plays an important role in your community and obtaining adequate business insurance is necessary to assist your business should any unexpected catastrophes arise.

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