Exercise Equipment Store Insurance

Understanding Exercise Equipment Store Insurance

(Learn the basics of protecting your business with insurance coverage)

Exercise Equipment Store Insurance

Do you run an exercise equipment store? Providing your customers with fitness equipment and apparel can be a lucrative business model. While an exercise equipment store faces many of the same problems that other commercial businesses experience, there are many specific risk factors that could potentially threaten your livelihood:

  • A customer trips on your treadmill and files a claim against you
  • Your showroom is ruined from fire and smoke damage due to an electrical problem
  • A worker injured themselves in the stockroom and requires medical attention
  • A delivery vehicle loses control and causes an accident

In this article, you will learn about the insuring your exercise equipment store:

As with any major financial decision, it’s important to speak with an expert. That’s why consulting an independent insurance agent can go a long way toward providing your exercise equipment store with the best coverage available. Independent insurance agents offer unbiased advice and enable you to compare multiple ensure simultaneously, ultimately finding the coverage that your business deserves.

What Types of Insurance Coverage Do I Need for an Exercise Equipment Store?

An exercise equipment store needs insurance coverage for every aspect of the business. Sold under a business owners policy (BOP), your exercise equipment store can get coverage that prevents significant financial liabilities should a covered event occurs. Most BOPs provide the following coverages:

  • Commercial property coverage
  • General liability insurance
  • Workers compensation
  • Commercial automobile insurance
Type of CoverageDescription of CoverageExamples
Commercial Property CoverageYour exercise equipment  store needs property insurance in situations where the business needs to be reimbursed following property damage or lost property.  This policy covers the cost of replacing your business equipment or other property when lost/damaged by fire, theft, vandalism, or natural disasters. Property coverage may include equipment, Inventory, offices/premises, supplies, and tools.Smoke damage from an electrical fire ruined your inventory and interrupted your ability to handle customers until your showroom was rebuilt.  A burglar broke into your premises and stole your computer equipment.
General Liability InsuranceGeneral liability insurance covers your exercise equipment store from some of the most common liabilities. This coverage is particularly useful when you need to compensate third-party lawsuits from a third-party non-employees such as customers or contractors.  General liability covers legal bills and settlements resulting from personal injury, damaged property, advertising injury, and reputational damage. Because your exercise equipment store may hire installers to work on other people's property, this type of insurance coverage may prove useful when damage or physical injury is caused to third parties.A customer hurts themselves or damages their property while trying out your equipment on the sales floor. A competitor accuses your company of slander or libel and takes your exercise equipment store to court.
Workers' CompensationWorkers' compensation insurance is mandatory in most states for any non-owner employees. It is a broad form of coverage that protects your exercise equipment store from any number of costs arising from the workplace. This coverage is important for claims, as lawsuits are generally avoided if injured workers file a claim through workers' compensation.  Workers' compensation can pay for lawsuits, funeral costs, medical bills, ongoing wages for injured or sick employees, and support payment for any dependents.A worker trips and breaks their wrist. Your receptionist has to take time off since developing carpal tunnel syndrome (CTS) symptoms.
Commercial Automobile InsuranceA commercial automobile insurance policy can protect your exercise equipment store from losses that arise when car accidents happen.Your delivery driver accidentally backs into a customer’s garden.

Umbrella Insurance

Insurance is customizable for an exercise equipment store depending on its needs. Most insurers offer umbrella insurance, which increases the liability of existing insurance policies by paying a single premium. This coverage can include:

  • General liability insurance
  • Professional liability
  • Commercial auto insurance

The value of an umbrella is that it pays for any lawsuits that exceed the current limits of your coverage, typically in increments of $1 million for covered events. This can be useful if, for example, you are being sued by multiple parties after a warehouse fire occurred with injured employees at your exercise equipment store.

Consult an Independent Insurance Agent

As you may discover, every company treats the aforementioned coverages differently, which means that your exercise equipment store may have gaps in coverage, even if you believe otherwise. An independent insurance agent can help you determine exactly which coverage protects your store and which ones may be available if you need more coverage. 

For instance, your business owners policy may not protect your property that’s stored at your home or at a storage facility. By consulting an independent insurance agent, you can learn whether your BOP covers potential damages or whether your homeowners/renters insurance policy covers these events. Even better, an agent can recommend bundling coverage that lowers your premiums, which is something company-specific agents may not offer without you asking for it. 

What Is the Cost of Insuring My Exercise Equipment Store?

Let’s be clear: There’s no average cost of insuring an exercise equipment store. While premiums average around $1,200 annually for most commercial entities, an exercise equipment store can vary in size and scope. 

As an example, a store that sells to commercial entities such as gyms and hotels, will need a broader policy than a smaller operations that sells to the general public. Then again, depending on how many customers and employees are involved with your business, your may need more coverage than you think. Or, you may have some company vehicles that need to be covered while transporting equipment from job site to job site.

The following are some of the most common risk factors that influence premiums:

Risk Factors for Higher Insurance Premiums

  • Size of premises
  • Employment status of employees
  • Number of employees
  • Condition of the property
  • Business hazards
  • Payroll size
  • Claims history
  • Severity potential

Risk Factors for Higher Commercial Auto Insurance Premiums

  • Driver demographics
  • How and where youdDrive
  • Type of driving and vehicle
  • Driving record/claims history

NAICS Code for Insurance Costs

One of the most important factors that insurers use to determine coverage for your exercise equipment store is the government’s North American Industry Classification System (NAICS) code. NAICS codes are used for insurers to compute premiums and risk, as well as a variety of other financially related purposes, such as qualifying for business loans and taxation. 

In most cases, exercise equipment stores are classified under the primary code of 72, which stands for ‘Sporting Goods Stores.’ However, if your exercise equipment store is engaged in other forms of business, your business may have a different code. Consult an independent insurance agent to find out your NAICS code and learn more. 

How to Reduce the Cost of Exercise Equipment Store Insurance

There are a number of ways to reduce your insurance premiums for your exercise equipment store:

  • Bundling coverage
  • Reducing risks
  • Providing adequate oversight and intensive training
  • Investigating any discount options offered by an insurer
  • Bundling coverage
  • Reducing risks
  • Providing adequate oversight and intensive training
  • Investigating any discount options offered by an insurer

Perhaps the best way to reduce the cost of exercise equipment store insurance is to consult an independent insurance agent. Because of their experience with providing multiple individuals with policies, they can provide you with a list of insurance policies that have protected their clients or share anecdotes of similar business coverage. 

For instance, if you’re looking to compare commercial business insurance policies but don’t understand the extent of the coverage, an independent insurance agent can explain the terminology and which covered perils fall underneath the wording of the policy. Doing this on your own can be time-consuming and inexact, so having a professional at your disposal can take the burden off of your search for coverage.

Additional Forms of Insurance for Exercise Equipment Stores

Insurance is available for every aspect of your business, through policy riders and policy enhancements. The following is a list of some other coverages that you should discuss with an independent insurance agent:

  • Business interruption insurance
  • Equipment breakdown insurance
  • Cyber liability insurance
  • Employee dishonesty coverage
  • Earthquake insurance
  • Flood insurance
  • Errors and omissions (E&O) insurance
  • Product liability insurance

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.


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