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Workers’ compensation insurance for sports and fitness businesses

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Workers' compensation insurance

Workers’ compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees.

Workers’ comp protects employees at your sports and fitness business

Teaching sports and fitness always involves physical risk. If an instructor at your yoga studio sprains a muscle, or one of your personal trainers develops a work-related back injury and requires surgery, your business could end up responsible for the medical bills.

Workers’ compensation insurance can pay for an injured worker's medical expenses as well as partial missed wages.

Workers’ compensation can help pay for an injured employee’s:

  • Immediate medical costs, such as emergency room expenses
  • Partial lost wages while the employee is recovering
  • Ongoing medical costs, such as physical rehabilitation

Workers’ comp protects sports and fitness business owners

Typically included in a workers’ comp policy, employer’s liability insurance provides protection when an employee decides to sue a business owner over a work-related injury.

Employer’s liability insurance can help cover:

  • Attorney’s fees
  • Court costs
  • Settlements and judgments

Even if a lawsuit is found to be without merit, you could find yourself paying for a costly legal defense if not properly insured.

How much does workers' comp cost for sports and fitness businesses?

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula is:
Classification rate  x Experience modification rate  x (Payroll / 100) = Premium

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State laws set workers’ comp requirements for sports and fitness businesses

Each state maintains its own laws for workers’ compensation requirements. For example, every Pilates studio in New York must carry workers’ compensation insurance for its employees – even a single part-time worker. However, business owners in Alabama are only required to carry workers’ compensation when they have five or more employees.

While self-employed or independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance, you can purchase this policy to protect yourself, too.

Monopolistic state funds

In certain states, sports and fitness businesses must purchase workers’ compensation insurance through a monopolistic state fund. Those states are:

If you purchase workers’ comp through a monopolistic state fund, it may not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.

Lower workers’ comp costs with risk management

Employees in the sports and fitness industry are at high risk for injuries. If an instructor is injured on the job, it can lead to an insurance claim, which will most likely bump up your workers' comp premium.

At any fitness business, you can mitigate risks. For example, you can create a safer work environment with:

  • Employee safety training
  • Regular maintenance of exercise equipment
  • Regulations that enforce proper footwear

Taking these steps should reduce workplace injuries, which can result in lower insurance premiums.

Other important policies for fitness professionals

Workers’ compensation insurance offers protection for your employees and to some extent your business, but it doesn’t provide coverage for many common risks. Sports and fitness business owners should also consider:

General liability insurance: This policy covers expenses related to customer injuries and property damage. It also covers advertising injuries, such as an accusation of slander from a competitor.

Business owner's policy (BOP): This policy bundles general liability insurance with commercial property insurance, often at a lower premium than if the policies were purchased separately.

Professional liability insurance: This policy, also called errors and omissions insurance, covers legal expenses related to work mistakes, such as client injury from improper training.

Get free quotes and buy online with Insureon

Are you ready to safeguard your sports and fitness business with workers’ compensation or another type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

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What kind of work do you do?
How much does sports and fitness business insurance cost?Protect against common risks with general liability insuranceGuard against work mistakes with professional liability insurance Bundle insurance policies and save money with a BOP Lessons in flexibility: Trepta Yoga’s story