If you run a gym, yoga studio, CrossFit box, or any fitness center, you've probably wondered whether you really need business insurance—and if so, what kind. Here's the reality: one lawsuit from a client who trips over a kettlebell could cost you tens of thousands in legal fees alone, even if you win. That's where a Business Owners Policy (BOP) comes in. Think of it as the insurance industry's version of a combo meal: you get general liability and property coverage bundled together, usually for 10-15% less than buying them separately.
But here's what surprises most gym owners: a BOP isn't automatically the right choice for everyone. There are revenue limits, coverage exclusions, and situations where you'll need additional policies. This guide breaks down when a BOP makes sense for your fitness business, what's included, what's not, and how to make sure you're getting the coverage you actually need.
What's Actually Included in a BOP for Gyms
A Business Owners Policy combines two essential coverages into one package: general liability and commercial property insurance. Let's break down what each piece protects.
General liability coverage handles the everyday accidents that can happen when you're running a public space. A member slips on a wet floor near the showers and breaks their wrist? That's covered. Someone claims your social media post used their image without permission? Covered. A client's designer gym bag gets stolen from your facility and they sue you for negligence? Covered. Your policy typically includes legal defense costs, medical payments (even for minor injuries where the person doesn't sue), and settlements or judgments up to your policy limits—usually $1 million per incident and $2 million total per year.
Commercial property insurance is the other half of your BOP. This covers your physical stuff: treadmills, weight machines, yoga mats, sound systems, computers, furniture, even your leasehold improvements (that custom flooring and mirrored walls you installed). If a fire, theft, vandalism, or covered natural disaster damages your equipment or facility, your BOP pays to repair or replace it. For most fitness centers loaded with expensive equipment, this coverage alone can be worth $100,000 or more.
Many BOPs also include business income coverage, which is a lifesaver if you have to close temporarily after a covered loss. If a burst pipe floods your gym and forces you to shut down for three weeks, business income coverage can replace your lost revenue during that time—so you can still pay rent, utilities, and staff while you rebuild.
The Cost Savings: Why Bundling Matters
Here's why gym owners gravitate toward BOPs: cost. According to 2025 industry data, fitness businesses pay an average of $86 per month for a BOP—that's about $1,031 annually. If you bought general liability and commercial property separately, you'd typically pay 10-25% more. For a small studio operating on thin margins, that savings can mean an extra $150-250 in your pocket each year.
The bundling advantage doesn't stop there. Most insurers offer additional discounts of 5-15% when you add other policies to your BOP—like workers' compensation (legally required if you have employees in most states), commercial auto (if you have a company vehicle), or professional liability insurance. Stack these discounts and you could save hundreds of dollars annually while getting more comprehensive protection.
Of course, your actual cost depends on several factors: the size of your facility, the value of your equipment, your location, your claims history, and how long you've been in business. A 1,000-square-foot yoga studio with minimal equipment in a low-risk area might pay as little as $60 per month. A 10,000-square-foot gym packed with expensive cardio machines and free weights in a high-cost urban market could easily pay $150-200 per month or more.
Revenue Limits and Who Qualifies for a BOP
Here's where things get tricky. Not every fitness business qualifies for a BOP. Insurance companies design BOPs for small to mid-sized operations, and they use revenue caps to keep it that way. Many insurers limit BOP eligibility to gyms earning $2 million or less in annual revenue per location. Some specialized programs are even stricter—limiting coverage to gyms under $500,000 in annual sales.
If you're running a large commercial gym with multiple locations or your flagship location pulls in $3 million a year, you'll likely need a more customized commercial package policy instead of a standard BOP. The good news is that larger operations can often negotiate better rates and more tailored coverage through commercial insurers—but you lose the simplicity and bundled pricing of a BOP.
There are other eligibility factors too. Your insurer will look at your claims history (past lawsuits or property damage claims can raise rates or disqualify you), your years in operation (brand-new gyms sometimes pay more or need specialized startup coverage), and what activities you offer. A basic 24-hour gym with cardio and weights? Easy to insure. A facility that hosts competitive CrossFit events, aerial yoga, or martial arts tournaments? That's higher risk and may require endorsements or separate policies.
What's Not Covered: Critical Exclusions to Know
A BOP is powerful, but it's not a catch-all. Understanding what's excluded is just as important as knowing what's covered. The biggest gap for fitness businesses? Professional liability, also called errors and omissions insurance. Your BOP's general liability coverage handles accidents unrelated to your professional services—like someone slipping on a wet floor. But if a client claims your personal trainer gave them bad advice that led to a shoulder injury, or your nutritional guidance caused a health problem, that's a professional liability claim. Standard BOPs don't cover those.
Many BOPs also include an athletic participant exclusion. If you host competitions, races, tournaments, or events where people are actively competing, injuries that occur during those activities might not be covered. A member sprains their ankle during regular gym hours? Probably covered. That same member tears their ACL during your annual CrossFit competition? Your BOP might exclude that claim entirely.
Other common exclusions include cyber liability (if hackers steal your members' credit card data), employee injuries (that's what workers' comp covers), intentional acts, and certain high-risk equipment. Some policies exclude coverage for trampolines, rock climbing walls, or other specialized equipment unless you specifically add them as endorsements. Always read your policy carefully and ask your agent about gaps that matter to your specific operation.
Why Your Landlord or Lender Probably Requires This
Most states don't legally require gyms to carry liability insurance. But here's the catch: you probably need it anyway. Commercial landlords almost universally require tenants to carry general liability coverage—usually at least $1 million per occurrence—as a condition of the lease. The landlord wants assurance that if someone gets hurt in your space and sues, your insurance will handle it instead of them getting dragged into litigation.
If you financed your equipment or took out a business loan, your lender likely requires both general liability and property coverage too. They want to protect their investment—if a fire destroys $200,000 worth of equipment they financed, they want to know insurance will replace it. A BOP checks both boxes in one policy, which is why it's the go-to solution for most gym owners.
Beyond contractual requirements, there's the practical reality: lawsuits are expensive. Even a frivolous claim with no merit can cost $10,000-20,000 in legal fees to defend. One serious injury lawsuit could bankrupt an uninsured gym. The average fitness business spends just $1,031 per year on a BOP—a tiny fraction of what a single lawsuit could cost.
How to Get Started and What to Ask Your Agent
Shopping for a BOP isn't complicated, but you'll want to compare quotes from at least three insurers. Prices can vary significantly based on the carrier and what they specialize in. Some insurers focus on fitness businesses and offer specialized programs with better rates and coverage options than general business insurers.
When you're getting quotes, have this information ready: your annual revenue, square footage, number of employees, types of equipment and their total value, and what services you offer (personal training, classes, childcare, tanning, etc.). The more accurate your information, the better your quote will reflect your actual needs and risks.
Ask your insurance agent these questions: Does this BOP include professional liability, or do I need to add that separately? Are there exclusions for athletic participants or competitive events? What's the actual cash value versus replacement cost for my property coverage (you want replacement cost)? What additional coverages should I consider—cyber liability, abuse and molestation coverage, equipment breakdown? Can I save more by bundling workers' comp or other policies?
A Business Owners Policy isn't just about checking a box on your lease agreement. It's about protecting the business you've built from the kind of financial disasters that end businesses. For most small to mid-sized fitness operations, a BOP offers the sweet spot of comprehensive coverage at a bundled price. Just make sure you understand the limits, exclusions, and gaps—and fill those gaps with additional coverage where it makes sense for your specific operation.
