Here's something most gym owners learn the hard way: your lease agreement probably requires insurance, but the bare minimum coverage won't protect you when something actually goes wrong. In 2023 alone, emergency rooms saw approximately 483,000 exercise-related visits—that's an 8% jump from the previous year. And when the average liability claim in the fitness industry costs $25,000, you can't afford to skip essential coverages or forget about optional protections that could save your business.
This checklist walks you through exactly what your gym needs, what you should consider adding, and when it's time to update your coverage. Whether you're opening your first studio or running a multi-location fitness empire, you'll know exactly where you stand.
Essential Coverages Every Gym Must Have
These aren't suggestions—they're the foundation of your risk management strategy. Skip any of these, and you're essentially gambling with your business.
General liability insurance is your first line of defense. It covers bodily injuries when a member trips over a dumbbell, property damage when someone accidentally puts their water bottle through your mirror, and even reputational harm claims. Physical injuries account for 50% of all gym insurance claims, so this isn't theoretical—it's protecting you from the most common risks you face every single day. Industry standards recommend $1 million per occurrence with a $2 million aggregate limit, and most landlords won't even let you sign a lease without proof of this coverage. Expect to pay around $69 per month or $825 annually for a basic policy.
Professional liability insurance (also called errors and omissions insurance) covers a completely different set of risks. This is about what you say and advise, not just what happens in your space. If a personal trainer recommends an exercise that injures a client, or if nutritional advice you provide causes harm, general liability won't touch it—but professional liability will. Any gym offering personal training, nutrition counseling, or specialized fitness programming needs this coverage. It typically runs about $42 per month or $503 annually.
Commercial property insurance protects the physical stuff that makes your gym function. Your equipment, computers, furniture, and even improvements you've made to your leased space—all of it needs coverage against theft, fire, and water damage. When you're looking at tens of thousands of dollars in equipment, this isn't optional. A business owner's policy (BOP) typically bundles general liability and property insurance together for an average of $86 per month or $1,031 annually, often saving you money compared to buying policies separately.
Workers' compensation insurance isn't just recommended—it's legally required in almost every state if you have employees. When a staff member gets hurt on the job, workers' comp covers their medical bills and lost wages. It also protects you from lawsuits related to workplace injuries. Whether you have one part-time front desk person or a team of 20 trainers, this coverage is non-negotiable.
Optional Coverages Worth Considering
These coverages aren't required by law or your landlord, but they protect you from specific scenarios that could otherwise sink your business.
Cyber liability insurance has become essential for modern gyms. If you're using software for bookings, collecting payment information online, or storing member health data, you're holding sensitive information that hackers want. A data breach doesn't just cost you in system repairs—you'll need to notify affected members, potentially offer credit monitoring, defend against lawsuits, and rebuild your reputation. For gyms relying on digital systems, this coverage is quickly moving from optional to essential.
Business interruption insurance covers the income you lose when you can't operate. Fire, flood, extended power outages—any disaster that shuts down your gym for repairs could destroy your cash flow even after the physical damage is fixed. This coverage pays for lost income and ongoing expenses like rent and payroll while you're closed. If you're operating on thin margins or your lease doesn't excuse rent during closures, this protection can mean the difference between recovering and going under.
Equipment breakdown insurance (sometimes called inland marine insurance) is critical if you have expensive machines or if you offer mobile training services. Standard property insurance often excludes mechanical breakdown, so when your $15,000 treadmill stops working, you might be stuck with the repair bill. This coverage also protects equipment in transit, which matters if you're moving machines between locations or bringing equipment to clients' homes or offices.
Abuse and molestation coverage protects against claims of sexual misconduct, harassment, or abuse. It's an uncomfortable topic, but false accusations can destroy your business even if they're ultimately unfounded. The legal defense costs alone can be devastating. While your screening and supervision practices should minimize risk, this coverage provides an additional layer of protection.
When to Add or Update Coverage
Your insurance needs change as your business grows. Here's when you should add coverage or increase your limits.
Add professional liability insurance the moment you start offering personal training, nutrition advice, or specialized programs. Even if it's just one trainer offering occasional sessions, you need this coverage. The risk kicks in the second you're giving professional advice, not when you reach some arbitrary revenue threshold.
Increase your property coverage whenever you buy expensive new equipment. That $20,000 worth of new machines you just financed? Your current policy might not cover it all. Call your insurance agent before the equipment arrives, not after it's stolen or damaged.
Add cyber liability when you start collecting member data digitally. Once you're storing credit card information, health histories, or personal contact details in any digital system, you're exposed. Don't wait until you have hundreds of members—get this coverage when you implement your first digital booking or payment system.
Review your coverage limits when your revenue jumps significantly. If you've doubled your membership or added a second location, your current limits might not adequately protect your larger operation. Most insurers recommend reviewing your policy whenever your annual revenue increases by 25% or more.
Annual Insurance Review Checklist
Set a recurring calendar reminder to review your insurance every year. Your business changes, your risks evolve, and insurance markets shift. Here's what to check during your annual review.
Verify that your property coverage matches your current equipment value. Add up everything you'd need to replace tomorrow—computers, machines, furniture, improvements to your space—and make sure your policy limit covers it. Equipment depreciation works in your favor when calculating premiums, but replacement cost coverage is what you want in a claim.
Confirm your general liability limits still make sense. The standard $1 million per occurrence might have been fine when you opened, but if you're now running high-intensity programs, serving hundreds of members, or operating in multiple locations, you might need higher limits. Talk to your agent about whether umbrella liability coverage makes sense for additional protection.
Update your workers' compensation coverage to reflect current payroll. If you've hired more staff or given raises, your premium should adjust accordingly. Underreporting payroll might save you money now, but you'll owe the difference during an audit—plus penalties.
Review any new services you've added. Started offering physical therapy? Added a juice bar? Began renting space to independent contractors? Each new service or revenue stream can create new risks that your current policy might not cover. Let your agent know about any changes to your business model.
Check whether your lease terms have changed. Some landlords increase the required liability limits when you renew. Make sure your insurance still meets or exceeds any requirements in your current lease agreement.
How to Get Started
Start with the essentials: general liability, professional liability (if you offer training or advice), commercial property, and workers' compensation (if you have employees). Get quotes from at least three insurers who specialize in fitness businesses—they understand your risks better than general business insurers and often offer better rates.
Ask about bundling options. A business owner's policy typically combines general liability and property coverage at a lower rate than buying them separately. Then layer on the specialized coverages you need based on your specific operations.
Don't shop on price alone. The cheapest policy usually has the most exclusions or the lowest limits. Focus on getting adequate coverage from a financially stable insurer with good claims service. When you need to file a claim, you want an insurance company that pays promptly and fairly, not one that fights every dollar.
Insurance feels like just another expense until the day you need it. With 483,000 exercise-related emergency room visits last year and the average claim costing $25,000, the question isn't whether you can afford comprehensive coverage—it's whether you can afford to operate without it. Use this checklist to make sure you're protected, review it annually, and adjust as your business grows. Your gym's success depends on your ability to manage risk, and insurance is your most important risk management tool.
