Fitness professionals, gym owners, and personal trainers work with clients to help them be fit, lose weight, and get rid of their chronic injury. Although a job that provides a lot of value in the client’s life, being a personal trainer or a gym owner comes with significant risks.
The health industry is a trillion-dollar industry. This includes both health insurance and the fitness training sectors. Every year health insurance companies pay billions of dollars for the treatment of illness, disease, and injury that might be preventable or treatable with dietary changes and guided exercise. If you are wanting to work as a medically effective personal trainer your business and guidance need to be toward the goal of improving the health of the individual client that will save the insurance company money in the long-run.
So how does it work? In basic terms, a healthcare professional or allied healthcare professional provides a service to a patient who is insured by a private insurance company, Medicare, or managed care. The provider completes and submits the necessary paperwork to the insurance company, including diagnosis and billing codes, a referral number, visit codes, the patient’s insurance plan number and any other information the insurance company requires. After weeks or months, the provider either receives payment from the insurance company for services rendered (usually on a negotiated rate, not the provider’s fee schedule) or is denied reimbursement for the claim
Fitness training requires lifting of weights and utilizing the strength of the body to its maximum potential. Clients might get injured, or may claim of not being satisfied with your training, and services. This condition can lead them to file a legal suit against you. Trainers in the gym working for you may get injured at your gym premises, and you being the owner of the gym will be held responsible. Moreover, some clients will not be satisfied with your services and may demand compensation.
If any such thing happens, you will have to face a significant loss in your assets and can turn out to be disastrous for your business. While some of these conditions can be avoided by being extra careful, there are a few situations that are not under your control. To avoid such problems, gym owners and personal trainers should always buy personal trainer insurance and group health insurance.
Although none of these insurances are mandatory to buy, there is no good reason to avoid them.
Public Liability Insurance
Public liability insurance is one of the most critical insurance fitness professionals should buy. People working out in the gym may get injured. This injury can be as small as a muscle strain and can be serious conditions like fractures, and dislocations.
Although the trainer is not always responsible for the injury, if the client files a lawsuit against you for being responsible for the injury, you will need to spend a lot of money while defending yourself. Public liability insurance covers the cost and expenses you will incur while going through the legal and court proceedings.
Having public liability insurance gives you mental peace while working because injuries in the gym are common. And, a minor looking muscle pull can turn out to be some serious muscle tear.
Employers Liability Insurance
Insurance liability insurance is a type of group health insurance that covers the cost of injuries that can happen to your employees in the gym. If you are a personal trainer or a gym owner with no employees, you might not need employers liability insurance. But, if you have a few employees in your gym working for you, group health insurance is vital.
Most employees are covered by workers’ compensation laws established at the state level (federal employees work under federal workers’ compensation laws). States require most employers to carry workers’ compensation insurance. Workers’ compensation provides some level of coverage for medical expenses and lost wages for employees or their beneficiaries when an employee is injured, sickened, or killed as a result of their job.
There is no need for the employee to sue the employer to establish a fault to qualify for workers’ compensation. However, if an employee feels that workers’ compensation does not adequately cover their loss perhaps because they feel their employer’s negligence caused their injury hey may decide to sue their employer for punitive damages such as pain and suffering.
Employers’ liability coverage is designed to cover expenses not covered by workers’ compensation or general liability insurance. In the event of a payout under an employers’ liability insurance policy, an employer can help limit their losses by including, as a condition of the payout, a clause that releases the employer and their insurance company from further liability related to the incident.
Employers Liability Insurance covers the cost you might incur if any of your employees get injured or fall ill while working for you in the gym. The employer’s liability insurance also provides coverage if any of your employees get into a quarrel with a client or sudden events in which your employee gets assaulted by a client in your gym.
Professional Indemnity Insurance
Your clients may not feel satisfied with your services. Or, your clients may claim they have not noticed the desired progress that was promised. In some cases, your clients can sue you for not providing adequate services. Professional indemnity insurance is also known as professional liability insurance and also as errors & omissions (E&O) in the United States.
It is a type of liability insurance that works to protect businesses and individuals who provide consultation and services with the compensation for full and hefty costs arising from the loss that they have caused to their client. The coverage provided by the insurance company focuses on the alleged failure of the service delivery by the company, which has led to financial loss due to errors and omissions in the service or consultation.
The insurance company handles the confidential data of its clients and their intellectual property to analyze before it provides consultation and required services. Keeping in mind the confidentiality of such information, it becomes very important for a business to take up professional indemnity insurance or professional liability insurance.
Some companies seek business with consultation and service providers demand that the individuals or businesses need to be covered by professional indemnity insurance. This is to lower the risk of not getting compensated for the losses caused by the business during the tenure of their service. Some individuals or organizations that need to have such insurance are accountants, financial advisors, healthcare professionals, solicitors, architects, chartered surveyors, etc.
Most organizations decide to take up professional indemnity insurance keeping in mind their protection against coughing up a large sum of money, in case they have caused their clients a huge loss due to their own mistakes and have to compensate for that amount.
It does not matter if you share a good business relationship or bond with your clients. A mistake that may lead to a financial loss will disrupt the peace between you. Therefore, it is very important to take up professional indemnity insurance for protection.
Professional indemnity insurance is important because no matter how good a trainer you are, or how effectively you manage your gym, there will be some clients who will not achieve their goals.
Some of them will accept that it is their responsibility to stick to their routine and recommended diet; some of them may file a lawsuit against you for not working properly with their regime. Therefore, professional indemnity insurance covers the cost of defending yourself in the costs and providing your clients with their compensation payments.