Yes, 2018 is here! On New Year’s Eve, many people made resolutions. Articles abound in January on the types of resolutions pledged (although not necessarily kept). In fact, there is a website Statistic Brain that offers the following: In 2017, ranking number 1 for 2017 was to lose weight and eat healthier (21.4%), while 5.5% (number 7) of resolutions dealt with to work out more often. Additionally, Statistic Brain reports that there are 153,000 gyms and health clubs worldwide, with 58 million people using these facilities, while 131,700,000 hold memberships. It would seem that controlling risks for good health is a priority for many across the globe. But today’s topic deals with fitness centers need for risk control.
Understanding the basics of risk management
There are a few synonyms for risk control, such as risk management or loss control. The Insurance Information Institute (III) sums up risk management when discussing risk management basics:
“Most entrepreneurs are risk takers, willing to invest resources with an expectation and hope, but no guarantee, of reward. But, from the viewpoint of insurance, “risk” is another word for “peril” and refers to things that can go wrong. Crime, vandalism, fire, a personal injury lawsuit, a computer virus, equipment breakdown, non-delivery of raw materials, death or illness of a key employee—the list of adverse events which can cause economic harm to your business or organization goes on.”
Undoubtedly, a good number of consumers will investigate joining a fitness center during January. Hopefully, they will stick to their resolutions, and they will find a fitness center that meets their needs. As well, many people will elect 2018 to be the year they become an independent business person and open a fitness center or current fitness center owners may use 2018 to review their business insurance coverage.
Risks for Fitness Centers owners to consider…
In late 2015, the U.S. Small Business Administration (SBA) published an informative blog article 6 Steps for Opening a Fitness Center. Take a few minutes and read this carefully. It includes six precise steps but also links to other critical essays about information and assistance provided by the SBA. Take note of the 6th step:
Business Insurance: “One last thing to ensure that you have covered is your business. Look into the insurance requirements for your state and the available insurance to protect you against workplace injuries and accidents.” Ask yourself: “What kind of business insurance do I need? And, when it comes to business liability insurance, remember “It’s not one size fits all.”
If your goal is to be open 24/7, here are just a few items to contemplate as you create your business plan, select your target market, choose your location, determine if buying or leasing equipment suits your needs, and define your staffing requirements. For example:
- Do you have emergency procedures in place?
- Will you allow members or their guests to be under 18 years old?
- Do you have panic alarms and systems in place?
- Does your customer/member contract include waiver wording, explicitly spelling out that the facility is unstaffed at times?
John Bailey Company offers Specialty Insurance for Fitness Centers
Fitness and Recreation Center Insurance is one of the John Bailey Company’s specialties. We understand that no two fitness or recreations centers are alike. Our highly competitive insurance policies can be tailored to fit your individual needs.
To learn more about our services and partners, call today: 865-524-0785. You can also fill out a confidential form, and a staff member will be in touch to answer any questions about specialty insurance.