Rising insurance premiums and unexpected coverage gaps are creating new challenges for health and fitness operators. In a recent interview with Jayson Scott, the director of business development — US Brokerage at Players Health and a 25-year veteran of the commercial sports and recreation space, he shared what’s driving these trends and how club leaders can protect their businesses.
Why Insurance Costs Are Climbing
According to Scott, clubs across the country are facing higher premiums for several reasons:
- More claims and larger payouts. Increased participation has led to a higher frequency of claims. At the same time, “nuclear verdicts” — court awards that are significantly larger than historical averages — are pushing costs higher, particularly in personal injury and abuse cases.
- Expanding services increase risk. From childcare and wellness programs to unstaffed operations and aquatics, every new amenity raises potential liability exposures.
- Rising property and equipment values. As clubs invest in higher-end equipment and tech upgrades, replacement costs — and therefore property premiums — have surged.
- Market instability. Fewer carriers are willing to write policies in the fitness space, largely due to historic loss data.
The Hidden Danger of Coverage Gaps
Scott warns that many operators discover too late that their policies don’t cover key exposures such as cyber liability, abuse and molestation, or employment practices. Scott recommended not assuming everything’s covered and to watch out for exclusionary language and perform annual reviews with a broker who truly understands the fitness space.
Turning Insurance Into a Business Strategy
Rather than treating insurance as an afterthought, Scott recommends making it part of your strategic plan:
- Work with a specialized broker. Partner with someone who knows the unique risks of health and fitness operations and can spot overlapping policies or unnecessary add-ons that drive up costs.
- Regularly assess risk. Review policies any time you add services or amenities to ensure coverage keeps pace with your offerings.
- Implement a risk management plan. Fewer claims lead to stronger insurability and more stable premiums over time.
Innovation Spotlight: Incident Mapping
One forward-thinking practice Scott highlighted is incident mapping — a proactive strategy that visually tracks where injuries or accidents occur within a facility or across multiple locations. By quickly identifying patterns and high-risk “hot spots,” operators can create targeted safety plans, improve staff training and standardize emergency procedures. It also streamlines claims documentation with detailed logs, timestamps and surveillance footage.
Final Advice for Operators
Scott’s closing guidance is simple but powerful: “Know what you’re covered for and what you’re not.” From property coverage for pools and courts to liability protection for evolving programs, annual policy reviews ensure your insurance aligns with your growth plans.
