Gym Insurance: Cost, Coverage & Best Providers 2023
Gym insurance can be a single policy, such as general liability, or a combination of policies, like a business owner’s policy (BOP) to protect your business in the event of customer injuries, subsequent lawsuits, and damage to your equipment. While costs can vary, general liability for a gym ranges from approximately $200 to $4,900 a year.
A gym or health club may require many different policies, so seeking a professional to help determine your business’s best coverage makes sense. Next Insurance, our top recommendation in this guide, is a great provider of gym, personal trainer, and fitness instructor insurance. Its quote system is simple and intuitive, and it provides customized coverage for your specific business needs. Get a free quote in minutes.
Gym Insurance Costs
Because of the nature of the business, gym insurance carries with it a higher level of risk, so the premium is higher than for other businesses. We received sample quotes for small facilities: around 2,500 square feet and revenue of less than $500,000 annually. The total insurance cost can still be more than $10,000 annually.
Annual Premium Cost
$200 to $4,900
$550 to $2,700
$500 to $1,000
$400 to $9,500
$500 to $1,000
$450 to $2,000
$500 to $1,000
Multiple factors affect gym insurance costs. When applying, be prepared to answer questions about the gym’s square footage, the number of employees, and whether you hire minors or let minors work out. Other questions may include your hours of operation and if you offer massage therapy. Insurance companies may also ask, or even require, members to sign a general waiver.
You may be interested in learning more about what a business liability waiver is. We included a free release of liability template that you can use for your fitness business.
Keep in mind that many insurers have excluded the following activities or will charge significantly more for them:
- Training minors
- Giving nutrition or diet advice
- Hosting fitness competitions
- Selling private-label supplements
- Teaching martial arts
When applying for gym insurance, be honest about the type of business you run and the activities available. While it may mean a higher premium, it goes a long way to eliminating coverage issues when you have to file a claim.
What Type of Gym Insurance Do You Need?
At a minimum, general liability and professional liability are best for fitness instructors and a BOP is ideal for gym owners. Some other businesses that should look into coverage are:
- Boutique, health, and 24/7 key access clubs: BOP and workers’ compensation for employees
- Fitness centers and Pilates, yoga, and dance studios: BOP, professional liability, and workers’ compensation for employees
Did You Know? Even virtual trainers need to consider insurance. When teaching online classes, you could be held liable if your instruction for a specific exercise is incorrect and ends up injuring a client.
Combination of general liability and commercial property and will sometimes include lost business income coverage
Liability coverage for third-party losses involving bodily injury, property damage, and personal and reputational harm
Liability coverage for claims a service provided caused harm or financial loss
First-party property insurance for tools and equipment
Medical bills and wage replacement for employees who were injured or became ill as a result of their job
A BOP is a combination of two coverages: commercial property and general liability. Some providers add lost business income coverage to it too. This coverage is essential for boutique clubs, health clubs, and any business owner who owns the building and the gym.
General liability insurance is the most common and essential liability policy because the losses covered are so broad—it protects your business from third-party claims of injury and property damage. If someone slips and falls at your 24/7 key access facility, you could file a claim under this coverage for their injury. Note that this policy is unnecessary if you purchased a BOP.
This insurance is sometimes referred to as errors & omissions (E&O) insurance. This is a liability policy for any service industry because it protects your business from claims that a service provided resulted in harm or loss to the customer. Consider carrying this policy if your gym has a fitness, pilates, and dance, as well as any other type of, instructor.
If you do mobile instruction, say at a park, or rent a facility but own the equipment, then you need inland marine to cover your tools and equipment. This is a first-party property insurance where the coverage follows the listed items instead of being tied to a specific location.
In nearly every state, workers’ compensation is a required coverage. If an employee becomes injured or ill from their job, it helps with medical costs and wage replacement and in some states, also protects the employer from liability.
6 Best Gym Insurance Providers
- Next Insurance: Best for gym owners
- Simply Business: Best for comparing quotes from top providers
- The Hartford: Best for personal trainers
- Insurance Canopy: Best for affordable and quick insurance
- ACE: Best for outdoor classes
- K&K Insurance Corporation: Best for 24-hour clubs
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Next Insurance: Best for Gym Owners
Next Insurance, in partnership with the National Academy of Sports Medicine, is the best provider for gym owners. This is because it can offer all of the different types of insurance you may need: general and professional liability, workers’ compensation, and commercial property insurance.
It also offers savings up to 10% when you bundle multiple coverages through it. It is best for gym owners with standard operating hours because it provides high liability and property limits. You can learn more about it in our review of Next Insurance.
We received a quote for liability with three options for coverage and pricing:
- The basic coverage carried limits of $1.5 million. This translated into $500,000 per occurrence and $1.5 million aggregate for general liability and the same for professional liability. It also carried $100,000 in abuse and molestation coverage. This policy cost $152.34 monthly.
- The premier quote carried a limit of $3 million. It broke down similarly to basic with $1 million per occurrence and $3 million aggregate for general liability and professional liability and $100,000 for abuse and molestation. This level cost $172.84 monthly.
- The deluxe level of coverage had a $4 million limit for general liability and professional liability with $2 million per occurrence, respectively. It also carried the same level of coverage for abuse and molestation. This policy cost $191.92 monthly.
You can obtain a quote and purchase a policy online with Next. If you want to speak with someone directly, it is only available Monday to Friday from 6 a.m. to 6 p.m. PT. However, unlike any other provider on this list, it offers an app exclusively for commercial services. The app functions like a 24/7 call center, allowing you to manage your policy, file a claim, or get an instant certificate of liability.
Despite being only seven years old, Next Insurance has an A- (Excellent) rating from AM Best.
Simply Business: Best for Comparing Quotes from Top Providers
Digital insurance brokerage Simply Business specializes in providing insurance options from over 15 top providers, online, without speaking to anyone. Its emphasis is on smaller businesses.
After entering key information about your business, Simply Business will provide multiple quotes with information on the coverage and provider, giving you the freedom to pick the right coverage. It isn’t simply good at comparing quotes—you can also purchase coverage and then manage your policy online after becoming a customer.
We received two quotes for a personal trainer:
- The one from NASW was for general liability and professional liability. It carried a limit of $1 million per occurrence and $3 million aggregate for both forms of liability. It cost $550 annually with no option for monthly installments.
- The other policy was through Hiscox, which carried a limit of $1 million per occurrence and $2 million aggregate for general liability. The professional liability carried a total limit of $1 million. The policy cost $1,046 annually or $87.16 monthly over 10 months with the first and last month of coverage due the day of purchase.
Simply Business lets you tailor the coverage so that after the quotes are generated, you can interact with the coverage and change the limits. Then, it will update the quotes in real time.
You can purchase the policy online or call to speak more about the coverage.
After purchasing a policy, you can manage it and initiate the claims process through your online account, which you have access to 24/7. You can also request a COI. If you prefer speaking with anyone, it is open Monday through Friday, from 8 a.m. to 8 p.m. ET.
Customers are happy with their experience using Simply Business. There are more than 600 reviews on the independent review site Trustpilot1 with a rating of 4.7 out of 5.
Simply Business works with top-rated carriers. For our quote above, the companies were NASW with a rating of AM Best rating of A- (Excellent) and Hiscox with an A (Excellent) from AM Best. Also, Simply Business is owned by Travelers, which AM Best rated A++ (Superior).
Get a Quote from Simply Business
The Hartford: Best for Personal Trainers
For gyms that employ fitness instructors or fitness professionals working as independent contractors, The Hartford is the best provider. It offers a professional liability policy specifically for fitness professionals. This policy helps you if, for example, you instruct someone how to lift incorrectly and they are injured. Our in-depth review of The Hartford can help you decide if the provider fits the bill.
A sample quote from The Hartford was $1,027 annually or $85.58 per month. To finalize the online quote, you will need to call. This quote included $50,000 in exercise equipment with a deductible of $1,000 and liability with a limit of $1 million per occurrence and $2 million aggregate.
With its wide variety of offerings, The Hartford has coverage options that are perfect for an independent contractor or a brick-and-mortar fitness center owner. It offers BOP, general liability, and workers’ compensation to complement professional liability.
The Hartford is available to its customers 24/7 for claims or policy services. It works with independent agents who can give you advice on your coverage, and you can manage your policy online. It is evident that its customers are happy with their experience since it has a lower-than-expected number of complaints filed with the National Association of Insurance Commissioners (NAIC).
An established carrier with over 200 years of experience, The Hartford has a rating of A+ (Superior) from AM Best.
Visit The Hartford for a Quote
Insurance Canopy: Best for Affordable & Quick Insurance
Insurance Canopy offers policies for personal, yoga, dance, Pilates, CrossFit, Zumba, and other instructors. It also has insurance for dietitians and nutritionists. It provides a standard policy for all of these different fitness jobs, and the policy starts at $12.50 a month. If you purchase an annual plan, you’ll save 14%, which brings the policy to $129.
These low prices make it the most affordable provider for gym insurance—and the ease of purchasing a policy in just minutes makes it the fastest way to get gym insurance. However, it does not have any mobile application to create and share COIs and if you want to change your policy by adding additional insureds, that will cost $30.
In minutes, we received a quote for $145 annually. It included $3 million for general liability and professional liability with $2 million per occurrence. It also contained $300,000 for any damage to a premise (think building) that you rent and $2,000 for your equipment. The equipment coverage had a $100 deductible.
For $30, you can add the ability to add an unlimited amount of additional insureds to your policy. A nice feature is that you can add liability coverage for dietitians and nutritionists for $75.
This quote included same-day coverage.
Once you purchase a policy, you’ll have access to all of your policy documents through the online account dashboard. There, you can manage your policy, obtain a COI, and begin the claim process.
If you need to speak with someone, there are agents available Monday through Friday, from 8 a.m. to 8 p.m. MT.
The policy is administered through the Great American Insurance Group, which AM Best rated A+ (Superior).
Visit Insurance Canopy for a Quote
American Council on Exercise: Best for Outdoor Classes
The American Council on Exercise (ACE) is a nonprofit organization specializing in certifying health and exercise professionals. The NCAA also approves its accreditations. ACE is the best provider for a personal trainer or group fitness instructor offering outdoor classes. It has broad liability coverage not limited to listed locations or premises on the policy. So, if you are leading a class at the local park, for example, your liability coverage extends there.
We received a sample quote from ACE for a $1 million general liability policy with a $3 million aggregate limit for $172 annually. There is an option to purchase this coverage for two years, the cost for which is $294.
According to the Philadelphia Insurance Companies (Phly), the carrier underwriting the policy sold by ACE, the policy comes with special events coverage for an event held by a club at another location. There is also an option to add liquor liability coverage. This policy is only for liability and does not provide any coverage for your tools or equipment.
Since Phly is the carrier underwriting the policy, it would be the one handling any billing or claims-related concerns. It has 24/7 customer service and online services for policy management and claims. It also has a dedicated fitness and wellness policy and claims services team. Also, the fitness policy comes with risk management services.
Complaints filed against Phly with the NAIC are lower than the national average.
Phly is a subsidiary of the global company Tokio Marine Holdings Inc. It has an AM Best rating of A++ (Superior).
K&K Insurance Corporation: Best for 24-hour Clubs
Being open 24 hours is a type of risk many providers do not wish to insure. However, K&K Insurance Corporation will cover facilities that have controlled access to a gym open all day and night; thus, it is the best provider for a 24-hour club.
To obtain a quote, you will need to call K&K, reach out to an independent agent, or create an online account and request one.
K&K offers a general liability policy, with add-ons, such as inland marine, for your equipment. The policy is for smaller businesses: the gym must be less than 3,000 square feet, and the company must have $2 million or less in yearly revenue.
Those limitations aside, there is a lot it covers, such as saunas, massages, gyms with childcare, and noncontact martial arts. There are options for maintaining your policy and filing a claim online. You can also work with an agent.
Unfortunately, K&K is not available 24/7. You can reach it Monday through Saturday, from 7 a.m. to 7 p.m. CT.
K&K Insurance is owned by Aon, which has an A (Excellent) rating from AM Best.
Frequently Asked Questions (FAQs)
Gym insurance is a policy or combination of policies purchased to protect a gym from the financial loss of claims. For a gym club owner, the best policy is a BOP closely followed by workers’ compensation for employees. For a personal trainer or fitness instructor, they will want to consider professional liability.
General liability for a gym can range from $200 to $4,900 annually. Gyms occupy a potentially risky space, especially if it is open 24/7, employ dieticians, or host fitness competitions. This, coupled with the expensive property and equipment, can lead to a premium being over $10,000 annually.
No. While a business liability waiver can help protect your business from lawsuits, it isn’t a magic shield that covers every scenario. It must be in compliance with state laws and regulations and, depending on the activity or loss doesn’t mean the injured party cannot still pursue litigation against your business.
You can get gym insurance by contacting an agent or insurance company directly to get a quote and purchase a policy. You can also go with a broker like Simply Business which works with multiple providers. The advantage of working with a broker is they can give you options from different providers, letting you compare coverage and pricing, and picking the best one for your business.
It’s easy to sweat the small stuff, but with the right policy, you won’t need to worry about your business. Whether you own a 24/7 fitness club or work as a personal trainer, gym insurance is a key part of a successful business. It protects you against claims of negligence and provides coverage for your equipment and building. Next Insurance can help you protect your gym and your livelihood with quality coverage that is customized to fit your needs. Get a quote and purchase a policy in just minutes.
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