The Need for Insurance
Insurance is basically risk management. It protects you, your assets, and your business against situations that could cause you financial difficulties. There is insurance for just about everything these days: automotive, fire, theft, and rain. You can even buy specialty insurance for personal watercraft and winter sports. Availability is certainly not a concern when you are shopping for insurance, but it can be difficult to know what types of insurance to buy.
As a personal trainer, this type of insurance is a must. It will cover you and your employees in the event of injury due to:
Improper use of equipment
Even if you are insured through your employer, you should still obtain your own policy, especially if you do any training outside of the club. If you do not have this type of insurance, you could end up paying hundreds of thousands of dollars in court fees, legal fees, medical bills, lost wages, and pain and suffering. You may purchase this insurance and never need to use it. But if you are sued, even if the suit is unwarranted, and you do not have coverage, you will probably lose everything.
Medical insurance provides coverage against loss due to illness or injury. It pays for doctor appointments, prescriptions, hospital stays, trips to the emergency room, and some other health-related situations. This form of insurance is important because medical expenses can add up quickly. Prescriptions can cost hundreds of dollars per month, as can a visit to the doctor with blood work. A hospital stay can leave you with thousands of dollars in debt.
Each plan is unique in the deductibles, copays, and coverage offered. If you are employed by a health club as a full-time employee, you may be covered through their medical insurance policy. However, with the rise in medical costs, many health clubs are either not offering medical benefits or are requiring their employees to pay a portion of the cost. If you are an independent contractor or own your own business, medical insurance can be one of your biggest expenses. If you think you are healthy and do not need insurance, you are mistaken. One major illness or injury will leave you paying medical bills for a very long time.
Before you purchase liability insurance, check to see if your legal fees will be covered. This can become a huge expense, even if a lawsuit does not make it to court. Lawyers charge a significant hourly rate, and you want to make sure you can afford the best when it comes to defending yourself in a court of law.
Disability insurance covers you in case you are unable to work for an extended period of time. The reason behind your injury or illness does not matter for coverage. This should not be confused with Worker's Comp insurance. With disability insurance, you will receive benefits even when the problem is not work related. If you are an employee, find out if your employer pays for your disability insurance. Most of the time, purchasing this form of insurance will be your responsibility. If you are self-employed, this is a must. Again, even the healthiest individuals can end up unable to work due to accident or illness.
Business Insurance Plan (BOP)
BOPs are insurance packages for small businesses. They simplify life by offering a combination of insurances so all major property and liability is in one package: property insurance, business interruption insurance, and general liability. You will only need this type of insurance if you lease or own the building you work in. Notice that professional liability is not included in a BOP and must be purchased separately.