As a studio or gym owner and operator, keeping your staff, members, and investment safe is a continuous priority for you. Whether it’s your landlord’s requirement, your own peace of mind, or a conscientious decision to ensure your business and bounce back from a loss, having insurance is key for business owners. Yet buying the proper insurance at the right price can be a difficult road to navigate. Do you purchase the highest limits for the most money? Or do you risk getting by with the bare minimum? The “bare minimum” can also mean different things: it can be buying the bare minimum in limits or buying limited coverage. Policies have different language and sometimes people buy insurance and later realize most claims aren’t covered due to exclusions. These are business decisions that every owner is faced with, but you can minimize your exposure by working with the right broker to understand the coverage you’re buying.
Understanding Your Options
Let’s talk about your studio. Consider aspects such as your geographic location, your genre of workout, and the type of clients coming to your workout. What additional insurance could you benefit from aside from General Liability? Below are some important coverages to consider and how they fit into a comprehensive program:
General Liability: Coverage for the slips, trips, and falls of your guests.
Workers Compensation: Coverage in the event of an injury to your employees on the job.
Professional Liability: Coverage for liability arising from the services you provide.
Rented Equipment Coverage: Protecting against damage to rented equipment.
Umbrella Coverage: Excess liability that kicks in when the underlying limits are eroded.
Hired & Non-Owned Automobile: Protection for your business in the event of a car accident.
Property Coverage: Coverage for property you own.
Employment Practices Liability: Liability defending your actions as an employer.
Sexual Abuse & Molestation: Protection against allegations of sexual abuse or misconduct made against your employees.
Cyber Liability: Protection in the event of mishandling personally identifiable information (PII) or breach of data.
Each business has their own unique needs, so talk with a broker to help determine what you would best benefit from. It’s also important to note that not all insurance companies are the same. A poorly rated insurance company may have cheaper coverage but lack the financial capability to pay out a big claim, which effectively renders the coverage obsolete. Understand what your insurance company does from a claims handling perspective. Are you receiving clear claims reporting instructions? Are there any additional services being offered within the policy that can help to alleviate the stress of navigating a complex and intricate situation?
More Than a Stack of Paper
Finding the right insurance broker is an important aspect of risk management as every business is unique. A professional broker will have stringent requirements for any insurance company they conduct business with. He/she should feel like an extension of your team and should listen to your needs versus selling to you. Further, look for an experienced broker who is able to work with you throughout all stages of your growth, whether that is new locations, increased membership or branching out to new ventures.
Look for an experienced broker who is able to work with you throughout all stages of your growth.
It’s also key to have a firm understanding of what additional services your broker can offer. They should be on the cutting edge of technology, proving you with current trends or data regarding loss control. Taking advantage of these additional tools and resources can provide you with the knowledge to keep your business running in the event of a loss, and to hopefully prevent one before it can occur.
When working with your broker or placing coverage for the first time, ask yourself:
- Have I chosen a reputable broker with an understanding of my business needs and exposures? Can I trust the coverage I am buying is comprehensive and protects my investment?
- Do I understand the coverage I have purchased? Am I aware of specific policy exclusions and where I am not covered? Am I comfortable with my level of risk?
- If I am working with a broker, are they able to grow with my business or am I comfortable using an online platform without additional conversations?
The situation for every small business owner and their insurance needs are unique, but with the right broker you’ll have the best opportunity to find the policy that fits your business.
This blog was sponsored and written by AJG. Protect your business today and learn more about Arthur J. Gallagher by visiting www.ajg.com. To receive your competitive and comprehensive online quote for your business click here.
Arthur J. Gallagher & Co. is global insurance brokerage firm based in Rolling Meadows, IL providing comprehensive brokerage and risk management solutions to its clients. Founded in 1927 as a family owned business, AJG continues to practice its shared values, corporate culture, and passion for excellence that define “The Gallagher Way” of doing business. Among its various awards and recognitions, Arthur J. Gallagher & Co. is proud to be the only insurance broker on Ethisphere Institute’s list of the World’s Most Ethical Companies. Visit www.ajg.com to learn more.