New Year, New Risks: Are You Covered?
An insurance pro breaks down must-have coverages and why fitness businesses should review their policies now
As personal trainers and fitness instructors prepare for the new year, taking stock of their insurance coverage is a critical step toward safeguarding their businesses. Whether leading online classes, training clients in homes, or working in varied locations, evolving risks require a solid plan for risk management.
“For fitness professionals, there are two coverages that are key to protecting your business: general liability and professional liability,” says JoAnne Hammer, CIC, program manager at Insurance Canopy. “While these two coverages may be purchased separately, the best protection comes when these coverages are combined in the same policy. This helps improve claim processing time and will reduce your cost for insurance.”
Hammer encourages fitness professionals to close out 2024 with an insurance audit, and prepare as best as possible for the New Year.
The Risks Fitness Professionals Face
Fitness professionals encounter unique challenges that can lead to costly claims. As new exercise formats and equipment are introduced, the potential for injuries increases. According to Insurance Canopy’s internal data, the top claims filed by personal trainers include:
- Slips, trips and falls (50%): A $62,059 claim covered after a client tripped over a BOSU ball during group training and required shoulder surgery.
- Damage to personal gear and equipment (25%): A $2,000 claim covered after a student accidentally knocked over a cabinet, damaging streaming and lighting equipment.
- Professional errors (15%): A $61,045 negligence claim covered after a trainer failed to accommodate a client’s medical history, resulting in injury and hospitalization.
Beyond these risks, Hammer highlights an often-overlooked area of coverage for fitness professionals who work in varied environments.
“One coverage that fitness trainers may not consider is Inland Marine, or coverage for your tools and equipment,” she explains.
“Many insurance companies offer a coverage called Business Personal Property, which only covers your tools and equipment that are located at your place of business. If you train at a variety of locations and bring your equipment with you, this coverage will not cover losses to your equipment when it is away from your main location. Inland Marine coverage goes where you do to more fully protect your investment in your training equipment.”
Staying Ahead of Industry Growth
The fitness industry has undergone significant changes in recent years, with trainers adapting to new formats and environments that require more professional education. According to Insurance Canopy’s data:
- The number of online instructors has grown 20% since 2021, reflecting a steady rise in virtual training.
- Trainers increasingly teach in diverse settings, such as community centers, public spaces, and senior living facilities, which add layers of risk.
- Fitness injuries occur at a rate of approximately 1.8 injuries per 1,000 training hours, underscoring the importance of liability waivers and adequate coverage.
“We monitor insurance trends, competitors and industry trends to make certain that we are providing a top-of-the-line insurance product at the best price possible,” Hammer says. “By monitoring trends in the fitness industry, we can make certain that new training techniques are covered in your insurance policy coverage, keeping your policy as up to date as your workouts.”
As fitness professionals adapt to industry changes—whether expanding into virtual training or operating in diverse locations—insurance needs are evolving too. Conducting a thorough review of your policies is a practical step to mitigate risks and ensure your business remains resilient in the face of unforeseen challenges.