I’ve been in this industry long enough to see the same sentence repeated over and over:

“I’ve got insurance — so I’m covered.”

That assumption is where most exposure begins.

Having a certificate of currency and actually having protection aligned with your real operations are two very different things. Insurance is not a box you tick. It is a contractual document governed by definitions, exclusions, endorsements, and declared activities. If those don’t accurately reflect what happens on your gym floor every day, you’re relying on hope — not protection.

Let’s unpack what that really means.



What Does “Covered” Actually Mean?

Most gym owners carry public liability insurance. That’s the baseline. It protects you if a third party suffers personal injury or property damage and alleges your negligence.

But here is the critical question:

Does your policy accurately describe your activities?

If your proposal form says “gymnasium – general fitness,” yet you run high-intensity interval training, Olympic lifting, boxing circuits, youth programs, or rehabilitation sessions, there may be a disconnect between declared activity and actual exposure.

Insurers assess risk based on disclosure. If something material is omitted or vaguely described, you may face complications during a claim.

Coverage is not determined by what you intended to be insured for. It is determined by what the insurer agreed to insure.

That distinction matters.

The Activity Gap Most Owners Overlook

I regularly review policies where the business description is overly broad — or worse, incomplete.

A gym today is rarely just a “gym.”

You may have:

• Personal trainers operating as contractors
• Group fitness instructors
• External specialists hiring your space
• 24/7 access systems
• Retail supplements
• Child minding
• Online coaching services

Each of those adds layers of risk.

For example, if personal trainers operate independently but your insurance assumes they are employees, liability allocation becomes complex. If they are not required to carry their own professional indemnity cover, you may inadvertently absorb that exposure.

Insurance works best when it mirrors operational reality.

If your business model evolves but your policy remains static, you introduce vulnerability.

Public Liability vs Professional Indemnity

Another area of confusion is the difference between public liability and professional indemnity.

Public liability responds to physical injury or property damage caused by negligence.

Professional indemnity responds to financial loss arising from advice, instruction, or professional services.

Fitness instruction is professional advice.

If a member alleges that improper programming caused injury due to negligent instruction, that may trigger professional indemnity considerations.

Not every gym policy automatically includes this extension.

Owners often assume instruction is embedded within public liability. Sometimes it is. Sometimes it is restricted. Sometimes it is excluded beyond basic supervision.

You must read the wording.

If you are delivering structured programming, assessments, corrective exercise, or tailored instruction, you should ensure professional services are clearly contemplated within the policy structure.

The Myth of the Waiver

Let’s address another common misconception.

“I have waivers. So I’m protected.”

Waivers are risk acknowledgment documents. They support defence. They do not prevent litigation.

Courts assess:

• Duty of care
• Breach of duty
• Causation
• Reasonableness of supervision
• Equipment maintenance
• Staff competency

A signed waiver does not override negligence.

Insurance exists because claims occur even when waivers are in place.

If your defence relies solely on a piece of paper signed at reception, you are underestimating legal scrutiny.

Equipment, Theft and Business Interruption

Many gym owners carry liability insurance but assume it extends to equipment damage, theft, or forced closure.

It does not.

Public liability covers injury or damage to third parties.

Your own assets require contents or property cover.

Business interruption is separate again. That responds when an insured event (like fire or storm damage) forces closure and results in loss of income.

If your gym is shut for three months and you have no business interruption cover, rent, wages, and fixed expenses continue.

A single event can erode years of effort.

Insurance must be structured, not improvised.

The 24/7 Exposure

If you operate unstaffed hours, you alter your risk profile significantly.

An unstaffed facility introduces:

• Reduced supervision
• Increased injury potential
• Security risks
• Access control issues

Many insurers require specific conditions for 24/7 operations — CCTV monitoring, duress systems, controlled entry logs.

If those risk controls are not disclosed or maintained, claims may be disputed.

Opening your doors around the clock is not merely an operational decision. It is an underwriting consideration.

Underinsurance and Limit Selection

Another recurring issue is selecting the lowest liability limit to save premium.

Consider the environment you operate in.

Severe spinal injuries, catastrophic accidents, or long-term disability claims can escalate quickly. Legal defence costs alone can be substantial.

Many commercial leases require $20 million public liability. Some owners still opt for lower limits where possible to reduce cost.

Insurance should reflect exposure, not optimism.

Disclosure: The Non-Negotiable Obligation

You have a duty of disclosure.

If you introduce new services — youth classes, combat sports, outdoor training, retreats, competitions — your insurer should be notified.

Failure to disclose material changes can impact claim outcomes.

Your policy is not static documentation filed away once a year. It is a living contract that should evolve alongside your business.

Ask Yourself This

If a serious incident occurred tomorrow:

• Are you confident your declared activities match your operations?
• Do you know your sub-limits and exclusions?
• Are contractors correctly structured?
• Do you have business interruption cover?
• Have you reviewed your policy wording in the last 12 months?

If the answer to most of those questions is “I think so,” then you are relying on assumption.

Insurance is not about fear. It is about clarity.

Clarity reduces exposure.
Clarity protects longevity.
Clarity supports confidence.

Final Thought

Running a gym involves physical risk. That’s inherent in movement, training, and performance.

Insurance should not be an afterthought purchased on price alone. It should be a strategic safeguard aligned with how you genuinely operate.

When your cover accurately reflects your floor, your staff structure, your services, and your growth plans, you are not simply “insured.”

You are properly protected.