I can’t believe the end of the year is upon us. Although most of us are planning our holiday season and wrapping up 2004, this is also an excellent time to start outlining your business plan for the coming year. In addition to setting your sales goals, looking at possible equipment purchases, or considering an expansion or acquisition of another club, this is also a very good time to review your existing risk management procedures and safety protocol. I have highlighted a few areas that you should consider as part of your 2005 New Year’s resolutions.
1. Review your employee manual.
Most of us have not updated our employee manuals in some time. There are also several new club owners who have never gotten around to developing an employee manual. A well-written manual sets a foundation for staff training and can help eliminate employee liability issues before they start. Your employee manual should clearly outline what is expected of the employee and address your rights as an employer to terminate the relationship. Your manual should also contain your Anti-Discrimination and Anti-Sexual Harassment policies.
2. AED’s.
Many states have already passed legislation that will require health clubs to have an Automated External Defibrillator in 2005 and it is just a matter of time before AED’s are the industry standard. Many insurance companies are already developing endorsements that will exclude liability protection for those clubs that do not comply with mandated AED legislation. Even if you are in a state that has not yet addressed the AED issue, it is still a good idea to have one. They are a proven device for saving lives.
3. Digital Video Surveillance Systems.
Digital video surveillance is an excellent tool to help reduce crime in your parking lot and mysterious disappearance of your inventory. However, it is an even better tool for staff training and capturing incidents that occur at your club. Since most accidents that occur at a health club are caused by “member malfunction,” a video that captures the event is an invaluable tool to help curb your liability.
A good surveillance system should have cameras placed on all workout areas, front counter, parking lots and common walk areas. The cost of these systems are reasonable (around $10,000 for a typical 20,000 square foot club) and will allow a club owner to monitor his/her club(s) from anywhere in the world.
4. Modify or update your Waiver.
More and more jurisdictions are upholding a well-written waiver of liability and hold-harmless agreements. However, many clubs still bury their waivers on a membership contract or have the waivers printed on the back side of an agreement. At the very least, there should be a signature line or a box for the member’s initials required below the waiver that demonstrate the member has read the agreement. We recommend that a separate waiver/release form be utilized that becomes a permanent fixture in your member’s file.
5. Invite your Mom to the club for an inspection.
A great way to obtain an unbiased honest evaluation of your club’s physical appearance is to ask your mother to come by and point out any flaws she sees in the club. She will find that you have exposed electrical cords, rusted cables, torn carpet, mold accumulation, ripped upholstery and sloppily dressed staff. Most club owners get so accustomed to their environment that they fail to see the minor problems that can cause potential premises-related claims. If your mother is comfortable in the club, it is a great indication that you have a well-run operation. A clean club usually reflects a safe club.
6. Get to know your members.
Finally, the best risk management plan begins with good basic customer service. As club owners, we often get caught up in the day to day business of running a club and begin to lose sight of the reason we got in this business in the first place. Sometimes we tend to lose focus on making changes in people’s lives and are distracted by the disruptions of owning a business. If we and our staff maintain a commitment to helping our members reach their fitness goals, the rest of the “business” usually takes care of itself. Make it your staff’s number one goal to turn good customer service into GREAT customer service. Remember, friends don’t sue friends.
Ken Reinig is the President of Association Insurance Group. He can be contacted at 877.521.9930, or by email atken@clubinsurance.com.
