Advice for Health Clubs on Arranging Insurance

In many respects a health club will require the same essential business insurances as most other companies. A health club will need to insure its property, loss of income and its potential liabilities.

Some of the considerations needed by a health club, and the specific aspects of insurance cover recommended, are as follows: -

Buildings

If you lease then ensure that the Landlord is fully insuring at a competitive premium. Remember that the cost will be passed on to you.

If you own the buildings or lease them under a full repairing lease, then insure for the cost of rebuilding. Consider including Subsidence cover and/or Full Terrorism cover.

Tenants' Improvements

The amount that you have spent improving or converting the landlord's building needs to be covered. This may include the costs of studio flooring, partitioning, changing rooms, wet areas etc. Allow for inflation and don't forget any tenants' improvements made by previous occupants.

Stock

Insurers will require you to quantify any wines or spirits from other stock held. Insure for the maximum amount of stock held.

General Contents

Simply calculate the total replacement cost of all gym equipment, carpets, furniture, kitchen equipment, office contents etc.

Loss of Income

Insure your Gross Income against loss following a fire, water damage etc. The maximum indemnity period needs to allow not only for the anticipated period of rebuilding but also the time required to regain customers etc. The maximum indemnity period is usually a standard 12 months however you should consider a longer period (18, 24 or 36 months) if you think that it might take this long to get back to the same financial position.

Employer's Liability

Employer's Liability - you are required by law to insure Employer's Liability for a minimum £10,000,000 Limit of Indemnity. This covers your liability at law for death, bodily injury or loss to all employees. The premium is based on the wageroll.

Public Liability

This covers your liability at law for bodily injury or loss of or damage to property of members of the public (not employees). We recommend a minimum Limit of Indemnity of £2,000.000 although an increasing number of Clubs are now insuring for a £5,000,000 Limit.

Any policy arranged for a health club should provide cover for advice given and in addition should cover any treatments provided such as massage or beauty treatments.

The premium is based on the annual turnover or number of club members.

Money Insurance

You should have cover for stolen cash. You will need to use a safe for high limits of cover.

Glass Insurance

This can cover all internal or external glass (automatically included if the Buildings are insured).

Loss of License

You may like to insure against loss of your alcohol license.

Personal Accident

Personal Accident insurance can provide cover for staff.

Legal Expenses

Legal expenses cover includes a free legal advice helpline.