Becoming a Fitness Consultant is a long, rigorous process, and opening your own Consulting business is an even bigger development in your career. Through a combination of your knowledge and expertise and confidence to work independently, you can be sure you’re on the right path to success.
Of course, if you’ve spent time working as a Fitness Consultant, it probably sounds relatively simple-after all, you’re doing the same job, just in a different setting. While aspects of setting up your own business are simply administrative, there’s one important aspect of opening a private practice you can’t forget: Liability Insurance.
Liability Insurance is vital to protecting your business’s financial future. Lawsuits, settlements, and verdicts can happen to even the best Fitness Consultants, and the consequences of these can be severe. Liability Insurance will help to keep your personal and business-related assets secure when faced with litigation.
Do All Fitness Consultants Need Liability Insurance?
Fitness Consultants can work in different fields but regardless of your area of expertise the reality is all Fitness Consultants face risks. When working closely with clients, a wrong decision can have a substantial impact on a business’s success. Fitness Consultants therefore face significant liability compared to other professions. The process of defending yourself from a lawsuit can be extremely costly and Liability Insurance gives you the peace of mind of knowing your legal fees are covered.
While no two incidents are the same, and many Fitness Consultants work their entire careers without having to deal with litigation, there are many real-life examples that show the importance of Professional Liability Insurance. Being covered could be the difference between maintaining your business and or losing it.
Two years ago, a Personal Trainer in Connecticut was found negligent of their duties and responsible for 75% of the damages, which worked out to be over 10 million dollars. It was determined that they encouraged their client to exercise beyond their capabilities, resulting in a stroke. Remember that while a criminal charge must be proven beyond a reasonable doubt, civil verdicts have a lower burden of proof, and liability can be shared by multiple parties.
Can’t Business Contracts Replace Liability Insurance?
Even though Fitness Consultants lose money from litigation every year, it’s a common misconception to assume a business contract is enough to stop any claims. The truth is it’s unlikely that your contract will completely protect you from being named in a lawsuit with no way to know in advance how a given contract will hold up.
If you choose to rely on business agreements make sure to consult an attorney to help you write your agreement. Of course, a good attorney will still likely recommend acquiring Liability Insurance as an affordable backup plan.
Commercial General and Professional Liability Insurance
Commercial General Liability (CGL) Insurance is intended to protect you from claims alleging that financial loss was caused as a result of your business activities. It covers incidents like personal injury for example someone tripping at your office or property damage.
On the other hand, Professional Liability Insurance (also known as Errors and Omissions Insurance) is recommended to anyone who provides a service for a fee, such as Fitness Consultants, Lawyers, and Accountants. It’s specifically intended to protect you from claims of failure of delivering your professional responsibilities, including issues such as inaccurate advice and unintentional mistakes.
How Much Does Liability Insurance Cover?
Liability Insurance is more affordable than you think, typically under $10 per day for substantial coverage. Policies come with two kinds of limits: per-occurrence and aggregate, with each usually ranging from $500,000 to $4,000,000.
Your policy limit is the maximum amount of coverage allowed under your plan. If your limit is $500,000, for example, and you are responsible for a $1,000,000 verdict, your plan will only cover half of the damages, leaving you responsible for the other $500,000. A few dollars a day is a small price to pay for more extensive coverage.
How Can Liability Insurance Help My Business Grow?
In addition to protecting you from litigation, Liability Insurance can be beneficial for your business in other ways. You may find many clients will refuse to work with someone who isn’t insured in order to keep their businesses secure.
Liability Insurance will be essential in case you hire more people. Even if you never have any claims found against you personally, your business could be liable for claims against other employees. Finally, Liability Insurance premiums can be tax-deductible, another reason to think about coverage.
What If I Don’t Get Liability Insurance?
Not taking out Liability Insurance, can be a significant financial risk not only to your business but to yourself as well. Did you know that if your business doesn’t have the financial capacity to pay the full amount of a claim you may be held personally responsible for the costs?
When you weigh up the costs of a high-quality Liability Insurance policy there’s no reason not to get covered. You’ll be protected from any settlements or verdicts found against you, and you’ll find it easier to grow your business. If you’re interested in finding the right policy for you and your business, check out BizInsure for a free quote.