Leisure centre insurance
Leisure centres can range from small, membership-only centres with a specific focus to larger establishments offering a wide range of activities to the general public. As such, many businesses can be defined as leisure centres, including:
- Sports centres.
- Health clubs.
- Cinemas and bowling venues.
- Pool and snooker clubs.
- Ice rinks.
- Swimming pools.
- Night clubs.
- Golf clubs.
- Wine bars.
In fact, any business that offers sports, exercise and recreational facilities can be classed as a leisure centre.
If you own a leisure centre, you are no doubt aware of the unique risks your business faces on a daily basis. While you can reduce these risks by ensuring your staff are fully trained and your facilities regularly inspected, purchasing leisure centre insurance can help to guard against the potential costs of these threats.
Some of the key policies you may be offered as part of a leisure centre insurance policy include:
- Public liability insurance:
With members of the public visiting your centre on a regular basis, public liability insurance can be crucial for your business. This cover can provide financial assistance if you find yourself faced with an accusation from a member of the public that your business has caused them to become ill or injured – or caused damage to their property. This typically includes clients and members, along with visitors to your business. If you operate a cloakroom or lockers as part of your leisure centre, you may consider making sure your policy protects third-party personal possessions against loss and theft.
Click the link to find out more about public liability insurance cost.
- Product liability insurance:
If you serve food or drink as part of your leisure centre activities, you may benefit from product liability cover, which can provide financial assistance if you need to defend against claims by members of the public that your product has caused them injury or illness. This can also be applied to health and wellbeing products, and may include gym equipment. Of course, you must make sure all goods and services you provide comply with legal standards and regulations. For more information, including product liability insurance rates, click the link.
- Professional indemnity insurance:
You may find professional indemnity insurance useful, which can provide financial assistance if a customer claims that the service or advice you have provided has caused them material, physical or financial loss. Leisure centres most vulnerable to this type of claim include those that offer treatments and advice on fitness, nutrition and lifestyle. If you would like more info, visit our 'what is professional indemnity insurance' page.
- Employers’ liability insurance:
If you employ staff at your leisure centre, you are legally required to purchase employers’ liability insurance. This applies whether you employ full-time or part-time staff, and staff that are paid or unpaid. You will need to make sure this cover includes any doormen and security staff you employ at your business. Employers’ liability cover can provide financial assistance if you need to defend against or pay compensation for claims from your employees that they have fallen ill or suffered injury due to working for you.
You might also consider employee dishonesty insurance, which can provide financial assistance if you have lost money due to the fraudulent or dishonest actions of an employee. However, this can impact your employers' liability cost.
- Buildings insurance:
If you own the building where your leisure centre is based, it may be worth purchasing buildings insurance, which can protect the main structure of the building and its fixtures and fittings against unexpected damage – typically that which results from severe weather, fire, flood and vandalism. If you are a tenant, your landlord is likely to be responsible for purchasing buildings insurance – check with them to make sure they have adequate cover in place. You may consider purchasing tenants improvements insurance if you plan to make changes and improvements to the building, including signage and window decals.
- Contents insurance:
In addition to buildings insurance, contents insurance is concerned with the items within your leisure centre and can include leisure and fitness equipment, static and mobile rides, lighting and sound equipment, entertainment equipment, televisions and computers. You can add cover for cups, trophies and other memorabilia, if it’s relevant to your business.
Contents insurance can provide financial assistance if you need to repair or replace your business contents after damage, theft or loss. You can purchase business equipment insurance alongside this cover, which provides protection specifically for the equipment you make available to customers or use to run your business. It can also include provisions for computer breakdown and data recovery.
You may consider purchasing stock insurance if you regularly sell items at your leisure centre, alongside cover for seasonal stock increases so you are fully protected during your busiest times. If you serve alcohol or tobacco at your leisure centre, it is important to obtain the appropriate licences for them – and to ensure you are fully protected for these high-risk items.
You may also benefit from purchasing loss of licence insurance, which can cover the loss of income you may suffer if you lose your licence, although this cover will be dependent on the circumstances in which you lost your licence.
- Cash on premises cover:
Cash on premises cover can provide compensation if your business money is lost or stolen while in transit and at your premises, including money in safes, and in gaming and change machines. This cover typically includes personal assault cover, which provides financial assistance if you or a member of staff is assaulted during the theft or attempted theft of your business money. You may also be able to extend this cover to include business money placed in yours or an employee’s house outside business hours.
- Business interruption insurance:
Business interruption insurance can cover any loss of revenue you experience because you are unable to trade due to an event covered in your insurance policy. This cover may also pay increased costs of working – including any costs involved in setting up at a temporary location until you can resume normal business operations.
- Directors and Officers insurance:
If your leisure centre includes directors, officers and other executive-level staff, you may benefit from Directors and Officers (D&O) insurance, which can provide protection if these members of staff are accused of committing wrongful acts during their employment with you, such as negligence or releasing misleading statements.
- Engineering insurance:
Insurers often include an engineering service within their policy. If you need an engineer after electrical or mechanical breakdown of equipment and machinery – or need inspections for your boilers, lifts and other machinery – your insurer may be able to arrange for a qualified professional to visit your leisure centre.
- Member to member liability:
While public liability insurance covers your business and its employees against claims by third parties, it does not cover the actions of the individuals who visit your business and may cause injury or damage to other visitors or their property. Member to member liability can be added to your public liability insurance, and specifies that each member visiting your leisure centre is insured as an individual.
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