Health clubs

What type of insurance do I need?
At a minimum, there are three basic types of insurance coverage that you will need as club owners. Liability insurance to help protect you from litigation arising out of injuries sustained by members and guests while on your premises; property insurance to cover your building or tenant improvements, contents, and loss of income and workers' compensation insurance to cover injuries and lost wages sustained by your employees. The insurance application will help guide you through these various exposures and will allow us to offer a proposal outlining these coverage areas.

How much will insurance cost?
The price of your insurance will vary depending upon the types of exposures you have in your club (i.e. child care, tanning, pools, climbing walls, etc.). Property insurance rates also vary based on the type of construction that you club is located in and area of the country. The only way to determine the cost for your club is to go through the application process.

How long will it take to get a quote?
It typically can take up to 72 hours from the time we receive your application until we send the proposal. However, if the situation is a rush, please contact us at +1.800.985.2021 and we can prioritize your application and get your quote to you in the same day.

Is workers' compensation insurance included in the quote?
No, workers' compensation is its own separate insurance coverage issue. However, getting a quote is easy. To receive a workers' compensation quote, please contact Nicole Baker at +1.888.500.3344.

How do I know if I need a bond?
Most states do not require a bond. However, there are several states that do. The easiest and most effective way to find out if you need a bond is to contact your State Department of Consumer Affairs. They should be able to determine if a bond is needed based on your method of collection membership dues.

How do I determine how much liability coverage I need?
Markel's health club liability policy provides $1,000,000 per occurrence with a $3,000,000 policy aggregate. This meets or exceeds the industry standard for liability insurance protection. However, there are times when a client is required by a landlord or lending institution to purchase additional liability limits or a club owner may have a personal reason for choosing higher limits. We make no recommendations on how much is "enough" but can provide limits up to $10,000,000 if necessary.

How do I determine how much property coverage I need?
When determining the property insurance, it is important to look at what it would take to "replace" your building and/or tenant improvements, your equipment, furniture, inventory, stock, and computer systems in the event you had a total loss. The property insurance policy will have a coinsurance clause that requires you insure up to full replacement value. Many club owners who lease their premises are unaware that they may be responsible by lease contract with their landlord to replace all of the improvements and fixtures...regardless of who owns them.

What is business income coverage?
Business income coverage is an extremely important coverage you should consider as part of your overall property insurance protection. This coverage is designed to protect your loss of revenue and your ability to pay your ongoing expenses in the event of a major loss, resulting in your business being forced to close its doors for an extended period of time. It is important to ask the question, "how much money would I need each month to continue my normal operating expenses, and how much net income would I lose from new sales and suspended memberships?" Keep in mind that if you had a serious loss, it would take at least a month to clean up the mess, a month to pull your permits and line up contractors and then several months of rebuilding. It could conceivably take up to six months to get back in business. Calculating the proper amount of coverage can be very difficult. We recommend that you carry enough coverage for six months of your ongoing expenses and lost profits, but it is up to you to determine your own limit of protection.

Are my trainers and instructors covered under this policy?
Yes, if they are employees; no if they are independent contractors.

How do I get a certificate of insurance?
You can submit an online request, fax a written request with the needed information to 678-290-2200, or email to mscsupport@markel.com. Your request are normally be processed within 24 hours. Please provide a fax number or address where you would like your certificate to go.

Are there any membership age restrictions?
The insurance policy does not contain restrictions concerning the age of a member. If you plan to have minors (anyone under 18 years of age) working out at the club, let us know. Although we encourage today's youth to exercise, there are specific underwriting and safety issues that you need to consider.