Liability risks for gyms are higher by the very nature of the activities that take place inside their walls. Not only are there services being provided and goods sold, but there are also tons of activities and equipment that can cause injuries.
Many gym owners may not be aware that their business can be held liable for injuries and property damage or may underestimate the costs associated with liability claims. It’s important to ensure your business is protected with commercial general liability insurance and you should also work on reducing the risks associated with your gym as much as possible. The first step is identifying liability risks for fitness centers and learning how to mitigate them.
Here are the top 5 liability risks for gyms:
- Injuries
- Staff Advice
- Cybersecurity
- Harassment
- Damage to personal property.
Injuries
Between the complex equipment and intense activity, it’s no wonder that injuries are a huge liability risk for fitness centers.
For example, a fall on a treadmill can cost your gym a lot of money. It’s a popular piece of equipment, but gymgoers may not be paying enough attention while using the treadmill. Along with walking or running, they’ll text, read, or watch a show, which opens the door for accidents.
To prevent injuries, below are some steps you can take:
- Always keep all equipment well-maintained.
- Purchase equipment with safety features and make sure gymgoers understand how these safety features work.
- Ensure safety rules are well communicated and enforced by all staff. Safety signs should be posted.
- If you have personal trainers operating at your fitness centre, ensure they’re qualified and also follow rules to ensure the safety of your clients.
- Keep your gym tidy and clean to reduce trip-and-fall hazards.
- Require patrons to rerack weights and have specific areas for free weights and other equipment to ensure they’re not left in walkways.
- To prevent falls, place mats at the entrances and maintain your parking lot and sidewalk.
- You should also require all customers to sign a waiver. The details of this waiver should be discussed with your insurance company and lawyer. Even with a waiver signed, you can still be held liable for an injury.
Staff Advice
The situation can be a bit tricky when it comes to personal training staff. Did you know that since personal trainers provide advice to clients, they (and you) can be held liable for damages or financial loss that this advice allegedly causes? If you employ personal trainers or allow them to train in your gym, you should make sure they’re qualified and require that they purchase their own professional liability insurance policy. You may need to extend your gym’s policy to cover staff if you provide training or classes.
Cybersecurity
Cybersecurity is a less obvious liability risk for fitness centres. Gyms often store a lot of information about their members digitally, including birthdays, addresses, and credit card information. Is this data sufficiently protected? It’s important to physically and digitally secure this data. You can do this by taking the following steps:
- Keep access to records behind a physically locked and secured spot.
- Password-protect computers and software using complex passwords.
- Backup your data on the cloud.
- Encrypt your data.
- Employ a cybersecurity company to perform an audit and recommend best practices for protecting your data.
- Establish procedures to ensure staff protect client information and important documents.
Despite the rising awareness of the importance of cybersecurity today, nearly half of all companies have experienced some kind of cyber breach. That’s a pretty frightening statistic. Your business could be held liable for the damage caused by a cyber-attack. To protect yourself and your business, purchase a suitable cyber liability insurance policy. You should also make sure your employees are aware of the importance of cybersecurity and protecting client data.
Harassment
Fitness centres and gyms are unique because they have a large target audience and draw in different kinds of people. Acts of violence between members, sexual harassment, or conflict and claims arising from these incidents can damage your business’s reputation and finances. To reduce this risk, here are a few steps you can take:
- Consider installing surveillance cameras in your gym.
- Develop and enforce policies and rules to discourage violence and inappropriate conduct.
- Train staff on spotting and handling situations of inappropriate conduct and deescalating conflict.
- Ensure gymgoers are aware of your gym’s rules and policies.
Damage to Personal Property
Customers often bring their personal belongings to the gym. Sometimes, these items can be damaged or stolen. Your gym or fitness centre can be held liable for this property damage or loss. A commercial general liability insurance policy will help protect you, but it’s good practice to have security cameras and offer lockable storage. Posting signs stating that your gym is not responsible for unattended items is also a great idea.
Protect Your Gym from Liability with Commercial General Liability Insurance
Naturally, gyms carry lots of risk, but mitigating these risks is not impossible. Getting a reliable commercial general liability insurance policy and committing to the precautions listed above, you can rest assured that your business is ready for any unpleasant surprises. If you’re a fitness instructor or a gym owner, get a quote today!
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