Hello! Hope everyone has had a great week and enjoyed my last post. Today we will be covering General Liability insurance. You've heard about it, but how much do you really know?
Your first step to insuring your gym is (Commercial) General Liability insurance: This coverage protects your business from claims arising from alleged bodily injury, personal injury or property damage liability. It includes protection for services you render or products you sell. Coverage payments can include judgments, attorney fees, court costs, or other related expenses.
What I just recited to you is the textbook definition of General Liability insurance, but what exactly does that mean? I like to think of GL as insurance against damage to “others.” Think of it this way, your entire company acts on behalf of you. Your employees, building, and property are all part of a single entity: your company.
General Liability protects a company’s assets and pays for obligations incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. What are some examples of this coverage protecting you as an owner? Here is one, from my own experience.
I have had lower back issues since I displaced a disk during a home run derby I took place in during high school. Now that I am older, a few years ago I decided to make an appointment with a physical rehabilitation center to strengthen my back and prevent pain or spasms. I went for 5 appointments and my physical therapist, Sarah, was awesome. On my 6th appointment, Sarah wasn’t there like she was supposed to be, and another guy I never met took over. We went through the routine fine, until we hit the heavier weights, and because of his unfamiliarity with me he put too much weight on the machine. I tried to lift, and he pushed me to keep lifting, but my back wasn’t strong enough and it gave out. I was now limping and in serious pain after this guy simply made a mistake. If I chose to, I could have filed a lawsuit (FYI – I did not sue, mainly because I was hurt before I went to physical rehab and I honestly didn’t believe the injury was now worse, but just that the injury was a flare-up). Now, who would that law suit be filed against? The trainer? Absolutely not, it would be filed against you as the owner of the sole proprietorship or as a corporation (we will talk about those differences later). Whether or not the suit is legitimate this would cause you to put in a claim with your insurance company to protect you from losses arising from that lawsuit.
Your next question may be….is that all General Liability protects me from? After all, all of my clients sign waivers so they can’t sue me anyways. Well, waiver or not they can still sue, and whether the suit is legitimate or not doesn’t change the fact that you have to pay lawyers to defend you. Could the plaintiff cover your court costs if they lose? Maybe, but what happens if they win? This is just one reason why General Liability insurance is important.
Your General Liability policy can also include important coverages such as Professional Liability, Personal and Advertising Injury Liability, Medical Payments, Premises/Operations and Products/Completed Operations. I will talk more about these coverages in my next article, but until then please contact me with any questions or conversation!
Please keep in mind that we can insure any Fitness, Health and Wellness Company in the state of California. I offer excellent customer service, so if you have any interest in allowing me to shop your insurance to find you a lower rate, please contact me!
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Derek I. Jimenez Lic. # 0K18952
Caldwell Insurance Agency Inc.
481 E. Whittier Blvd. Ste D
La Habra, Ca 90631
Office: (562) 697-6200
Toll Free: (800) 662-0596 Fax: (562) 697-1622
General Liability, Commericial Auto, Property & Workers Comp Available to fit your Insurance needs!!
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