Ken Reinig, the president and CEO of Reinig Insurance Solutions, shares how to lower your risk and insurance costs.
Many gym operators treat purchasing insurance as a “set it and forget it” task. However, this approach can be costly in the long run. Insurance might seem tedious and detail-oriented, but its primary purpose is to protect your business. Instead of adopting a passive attitude, taking proactive steps to manage your insurance can significantly reduce your costs over time.
Once you’ve set up your yearly policies, it’s tempting to relax. But do you know what happens each time you file a claim? Your annual premium increases. The more claims you file, the higher your costs will be. There’s a more effective way to handle this — one that involves reducing your yearly claims, which in turn decreases your costs both short and long-term.
To achieve this, you must be proactive. By addressing the areas of greatest exposure, you can lower your risk and, consequently, your insurance costs. Here are some actionable steps:
- Ensure Adequate Spacing: Make sure there’s enough space between machines to allow for safe movement and prevent accidents.
- Strategically Locate Childcare Facilities: Place childcare facilities near exits for easy access and to minimize risk during emergencies.
- Maintain Equipment: Regularly check all machines are fully functional and properly maintained to prevent accidents and equipment failure.
- Train Your Staff: Keep your staff informed and trained on the latest workplace sexual harassment and discrimination policies, as well as workers’ compensation procedures. This not only protects your employees but minimizes potential claims.
- Consider Construction and Labor Costs: When selecting a new policy, factor in potential increases in construction and labor costs for any new projects. This foresight ensures your coverage will be adequate even as costs rise.
- Juggling these priorities can be challenging, especially for gym operators who often handle both ownership and operational responsibilities. However, being proactive in managing these aspects will reduce your risk and, consequently, your insurance costs.
There are numerous resources available to help you mitigate risks and lower your yearly expenses. These resources can provide guidance on best practices and help ensure you’ve taken all necessary steps to protect yourself, your staff and your business.
By actively managing your insurance policies and addressing potential risks head-on, you’ll not only save money but also gain peace of mind. Knowing you’ve done everything possible to safeguard your livelihood allows you to focus more on growing and improving your gym. In the end, taking a proactive approach to your insurance is not just beneficial — it’s essential for the long-term success and sustainability of your business.
