3 minute read
Reduce Your Stress and Exposures in 2021
Proven advice to help you mitigate threats to your business
By Murray Mackenzie
One way to reduce your stress and make sure you and your business are covered properly in the coming year is to put a comprehensive insurance plan in place to mitigate your risk.
As the leading fitness insurance broker in Canada, we at Gallagher are frequently asked how fitness instructors and gym owners can reduce risks associated with their clients and/or premises. We have seen many different claims scenarios during our tenure as the only endorsed broker for the canfitpro “Protect Yourself” insurance program. This has allowed us to share the following advice to help you mitigate threats to your business:
- Be certain to carry liability insurance that includes an Abuse extension. Even if your claim never goes to court, expenses can be in the tens of thousands or much higher. We recommend carrying at least $2M of liability coverage as lawyers can be expensive and can deplete liability limits very quickly in lengthy claims situations. Some other programs insuring those in the fitness industry offer limits of $1M, and even $500,000, and as noted these limits can be eroded to the point where you do not have enough insurance to cover the claim.
- Insure contents related to your fitness operations for theft, fire, and damage as these are expensive to replace. If you operate a gym, be sure to have business interruption insurance. This will cover the profits you would have made and can be the difference between your business surviving a significant claim or not.
- Have a response plan available to all staff so they are prepared for various loss scenarios including injuries, sickness, CPR, as well as procedures to deal with the COVID-19 exposure.
- Realize that any clients under the age of 18 are not allowed to enter into a contract, so while parents can sue for negligence now, the minor can also come back later when they become an adult and pursue legal action again. For these reasons, be very careful about training minors.
- Ensure your staff have the proper training and certifications to carry out the duties they are performing, otherwise their insurance may not respond as this is a requirement of the policy.
- Be sure to have a commercial liability policy to cover your exposure if you work from home and have clients come into your residence. Should your homeowners’ insurer find out that you have a commercial operation without proper insurance, they may cancel your homeowner’s policy.
By using these practices, you will greatly reduce your stress, exposure to claims, protect not only your business but also your personal assets, and help to avoid a stressful, drawn out litigation and potential trial.
Insurance exists to protect you in the event of an unforeseen accident or occurrence. These situations, however, can be mitigated with some careful steps, some of which have been outlined in this article.
Should you wish to obtain a quote as either a fitness trainer/instructor, in-home studio operator or gym owner, we can be reached from the canfitpro website or directly via our website at ajgcanada.com/canfitpro.
Murray Mackenzie, C.I.P., B.Comm., is Senior Vice President of Commercial Insurance at Gallagher. Murray has been working in the insurance industry for over 30 years. He is a graduate of McMaster University. Contact him at murray_mackenzie@ajg.com or visit ajgcanada.com/canfitpro.
