Risks That Could Put Your Fitness Center Out Of Business

Source: sadlersports.com - Risks That Could Put Your Fitness Center Out Of Business
Author: John Sadler

Running a fitness center is no small feat due to the constant management of contract employees, members, front desk agents, maintenance staff and the like. Collecting member dues and keeping your numbers up is probably one of your greatest concerns, but you also have major risks that you need to manage in order to survive.

The 5 Hidden Risks
Disaster-related loss

Studies have shown that nearly 60% of businesses are underinsured, leaving them vulnerable to significant losses in the face of natural disasters. Protect your fitness club by investing in adequate health club insurance coverage and having a set recovery plan in place to minimize your risk for total loss.

Emergency Losses

Accidents happen every day – explosions, violent acts, outbreaks of disease such as Legionella; these incidents can significantly impact both your finances and your reputation.  Speak with your insurance agent and make sure that your business is adequately covered for catastrophic liability and property losses.

Cyber-Security Breach

You store a lot of member data on your computer system: birthdays, home addresses, even credit card numbers are kept on file. Did you know that nearly half of all businesses have experienced a data breach? However, only one in 10 of those businesses are covered for cyber-liability.  A Cyber Risk policy should protect your fitness center from client data breaches in the event that negligence on the part of your company is determined to be the cause of breach.

Personal Trainer Liability

If your fitness facility employs personal trainers, you may be liable for their negligent behavior, even if they are only a contracted employee. Sexual harassment, physical injury, even poor dietary advice can result in a lawsuit against your company. It is safest to require your contract trainers to carry their own General Liability / Professional Liability policy.  However, some fitness facilities choose to add coverage for contract trainers under their fitness facility policy.

Treadmill Injuries

You see them all the time, one of your clients will be running on a treadmill, nose in a book, texting or bobbing along to their iPod. This multitasking often leads to injuries that you are likely to be liable for. The average cost of any treadmill-related incident is $250,000.

Source – Hidden Risks Faced by Fitness Centers

 

Read Full Story: http://www.sadlersports.com/blog/5-risks-put-fitness-center-business/