Keeping members safe and controlling costs are two priorities that are near the top of every club owner and operator’s priority list. These priorities also have quite a correlation.
When your members are safe, they are happy. They also are able to return to work out time and time again if uninjured. As these happy members continually return, that positively impacts your bottom line with steady revenue you can use to reinvest in your clubs and grow memberships. In addition, by keeping members safe, club owners can reduce or avoid increased expenses for insurance, marketing campaigns and PR efforts to overcome the negative publicity associated with incidents and costly lawsuits. It’s a win-win!
The keys to providing a safe and secure facility include a comprehensive review of your club’s waiver practices, equipment maintenance program and trainer certifications, as well as continuing education on the latest trends, training practices for emergency situations and sexual misconduct prevention.
Address Changing Conditions and Trends
Many liability claims result from someone getting injured on a piece of cardio or strength equipment that has not been properly serviced, maintained or removed from the floor if compromised. Using a vendor to maintain and service equipment on a regular basis can often mitigate certain losses. It’s also helpful to have an on-site maintenance staff that is well-versed in the equipment.
It is also not uncommon to see professional losses arising from injuries that occur during personal training sessions. With the rise of intensive boot camp style training and continually evolving new methods, trends and equipment, injuries can occur if a trainer or group exercise instructor is not careful. Assuring that certifications are up to date, and that trainers and instructors continually assess the latest industry trends, will help your clubs keep up with the fast pace of fitness.
Perhaps the most vital step your club can take to protect its interest is having proper waiver language in place and handling waivers separately from the membership application. As always, it is advisable to consult with your attorney to become versed in the state’s legal climate and verify that your waiver language meets the current statutes and is supported by the case history.
Be Prepared for the Big One
A concern that keeps many owners and operators up at night is the potential for that one high-impact incident affecting a member’s health and well-being. Severe injuries, health emergencies, weather catastrophes or allegations of sexual misconduct are some of the incidents that can lead to large lawsuits and damage to the reputation of a club.
Preparation can help your club avoid or control the damage from such incidents. Complete background checks on all employees who interact with members, especially children. In addition, establish emergency response procedures and consistently practice and review them to assure that your staff is ready to react in the event of an emergency. Many liability claims result not from an injury or cardiac emergency, but rather from the lack of a timely response or proper care.
In addition to local counsel, your local insurance agent can act as a valuable resource to keep up with the changing conditions within the health club industry and to provide risk management guidance, solutions and recommended best practices. A fantastic resource to tap is the expertise of an insurance agent or carrier partner who provides loss control walk-through inspections and risk assessments.
By assessing and testing your club’s practices to see if they meet the best practice standards of your industry, then training and educating your staff, you can have a club that keeps members safe. That will go a long way to keeping costs down and profits up!
Brian Rawlings is the Target Market Manager for The Cincinnati Insurance Company’s Fitness and Recreation program. He can be contacted at 513.218.9105 or by e-mail at brian_rawlings@cinfin.com.
