Association Insurance Group, Inc is entering its second decade as the leading provider of insurance services to the health club industry and, as President and Founder, I am optimistic about the future. I am convinced that health clubs are safer today than they were just 10 years ago and this trend is likely to improve. Probably the single biggest contributing factor to advancing the overall safety of fitness facilities is the improvement in the quality of the people that have chosen this industry as their career. Club owners, and the fitness professionals that work with them, are better educated today and more aware of the importance of creating a safe and effective workout environment that will enable their members to achieve their fitness goals without sending them to the hospital.
When health club owners advance their customer service skills, the inevitable by-product of this improved quality of service is a safer club. There are several areas that contribute to club development and to the ability to maintain a safe health club environment.
Better Better Health Club Design:
Clubs that will be built in the future, and those that will be undergoing renovation, will combine improved building materials with enhanced functionality to create cleaner, safer workout environments. Non-skid flooring materials for wet areas will continue to evolve and common area design for member traffic control will help reduce trip-and-fall incidents. The days of jamming as much equipment into a box are thankfully going away, too.
Reduced Wet Areas:
There was a time when most new health clubs with an area of over 20,000 square feet would not open their doors without throwing in a swimming pool and hot tub. Pools and hot tubs significantly increase a member’s exposure to injury. There usually is a very small segment of the membership base that will even use a swimming pool today.
Association Insurance Group is able to track not only the type of claims that occur at a health club, but they can also determine the average age associated with a specific type of injury. For example, the average age for a member who injures themselves by slipping and falling in a wet area is 72 years old. Injuries to an elderly member can be serious and recovery is much longer.
Another reason wet areas are being reduced is pure economics. Swimming pools are a pain, ask anyone. Hot tubs stink, and steam rooms create mold and mildew. It’s tough enough keeping showers and locker rooms clean. In general, wet areas are expensive to build and maintain. This is one reason why we are seeing the explosion of “express” clubs nationwide.
Improved Commercial Exercise Equipment and Less of It:
Club owners today are designing their facilities with more open space for group instruction, stretching areas, and room for social gathering. With space at a premium, the club owner is more likely to choose a high quality multi-functional piece of equipment over several single-function units. Fewer pieces of equipment signify less maintenance and reduced frequency of equipment-related injuries. Also, due to the cost of product liability insurance and the litigation associated with equipment injuries, the manufacturers are starting to understand the need to design safer equipment. I suggest that if you have any “museum” pieces of equipment, have a garage sale and open a “group X” area.
Technological Advances in Safety Monitoring:
Digital surveillance systems have now become a standard for club operations. Costs continue to drop as technology and demand increase. You can now purchase a digital 14-camera system for under $10,000. Club owners now understand that it is not only important to monitor the front desk, but that having surveillance cameras in all workout areas of the club (especially the treadmill areas) is crucial. Since most injuries that occur at the club are the result of “member malfunction,” having an event captured on digital disc is “golden.” Once a plaintiff attorney views the “Film at 11,” you would be surprised as to how many of these claims go away. Also, when a member knows that the club has surveillance cameras, they are less likely to misuse the equipment or attempt unsafe exercise routines. Digital cameras can also help eliminate vehicle break-in incidents in the parking lots. Surveillance systems enable the club owner to monitor their gyms from anywhere in the world. They not only improve club safety they are an excellent management tool to help train staff in raising their level of customer service.
Express Clubs and Training Studios:
As everyone knows, there has been an explosion of express fitness studios in the health club industry. The market is becoming saturated with these niche-type clubs along with significant increases in the number of personal training studios. Many experts in our industry are now saying that for every new express club that opens, one or two shut their doors. Despite the failure rate, this business model is likely to continue. From an insurance perspective, these smaller clubs have a much better safety record than a standard- or full-service health club. There are no wet areas, there is no heavy equipment and very few of these express clubs have any treadmills. (Treadmill accidents continue to be the most frequent type of claim that occurs in clubs.)
Education and Certification:
The club owners that will enjoy financial success in the future understand the need for education today. Every business owner, whether or not you are an insurance guy, club owner or personal trainer, needs to understand the importance of continuing education. Since a club owner is not “required” to attend continuing education seminars, they often don’t. It is a shame that many club owners can not take two or three days out of their life to attend a business seminar. There are several industry experts (Thomas Plummer, Karen Woodard, Casey Conrad, Mike Chaet, and Michael Scudder) that hold seminars nationwide. The long-term outcome of a more-educated owner is that they will make more money and have more fun doing it. A well-run, successful club is also a safer club. Club owners who are successful tend to keep their equipment in top condition, hire the best staff, and have created a “Cheers-like” environment for their members. Personal trainers and group instructors are required to take continuing education to maintain their certification. Club owners should also attend at least one seminar each year to maintain the keys to the gym.
As for the future of insurance issues for the health club industry, it is not only important to hook up with an agent that understands the gym business, it is equally important to utilize that agent and client relationship to its full potential. Association Insurance Group has been providing club owners with safety manuals since 1995. We continually update our risk management materials and work with underwriters to maximize insurance protection at competitive rates.
Anyone can go out and buy a cheap insurance policy, but insurance is only one aspect of a club risk management system. When I play my guitar at a Thomas Plummer seminar, I sing a song called the “Gym Owner Blues.” As a past club owner myself, I can relate to my clients and they get a kick out of the song. However, they also know how serious I am about protecting their gyms from lawsuits. At Association Insurance Group, we are committed to helping club owners improve the safety of their clubs.
Ken has authored volumes of helpful and informative media on the subject of risk management and he encourges all club owners to access this free information on his company website: www.clubinsurance.com.
Ken Reinig is the President of Association Insurance Group, Inc. He can be contacted at 877.521.9930, or by email at ken@clubinsurance.com.
