Diet centers centers provide services that help clients lose weight or maintain a desired weight. Services often include:
- Menu and exercise planning
- Weight monitoring and body measurement
- Group and individual counseling
As they offer a variety of services using numerous different business models and weight-loss philosophies, diet centers can be inherently risky for the business owner. You can sustain property damage from a fire or a break-in just like any other business, and you can be sued for causing injuries, property damage, or financial losses to third parties.
If you own a diet center, you need a comprehensive business insurance program that is tailored to the unique risks of your diet center. An independent insurance agent in your area can help you find customized diet center insurance that fits your needs and budget.
Why Do You Need Diet Center Insurance?
Diet centers vary greatly in the type of diets they espouse and the services they provide. Most use multiple locations to provide a convenient place for customers to meet, receive counseling, and perhaps even shop for food, supplements, or other weight loss aids. Many individual locations are owned by franchisees, offering entrepreneurs a small business opportunity with access to larger corporate resources and name recognition.
Many diet centers also have a strong online presence.
Diet centers face many of the same risks as typical retailers, including fire, theft, vandalism, and weather events, as well as slips and falls on the property and other third-party injuries or property damage. In addition, because they provide counseling services and perhaps even food or supplements, weight loss centers have professional liability exposures as well as exposures related to the products that they sell.
If you own a diet center, you need to protect your business from catastrophic losses. You must protect your building if you own it, as well as be able to pay your bills and resume operations if you have to close for repairs after a storm, a fire, or some other unforeseen event.
You may also have a variety of liability exposures where you can be held responsible for injuries or property damage to others. Slips and falls, falling store fixtures, faulty products, and diet counseling services all leave you vulnerable to claims and costly lawsuits that could put you out of business.
Diet centers need business insurance to protect their livelihood from financial disaster due to property loss and lawsuits. If you operate a diet center as a sole proprietor or a franchisee, talk to your independent insurance agent they types of coverage that you need. If you’re a franchisee, you likely need to purchase coverage as required by your franchise agreement, but the required coverage may still leave gaps.
What Does Diet Center Liability Insurance Cover?
Liability insurance is likely the most important type of insurance for a diet center. A commercial general liability (CGL) policy provides broad coverage for bodily injury or property damage that occurs on your premises or as a result of the services you provide, including:
- Slips and falls
- Advertising liability
- Libel and slander
CGL policies also cover your defense costs, court costs, and court-ordered judgments that you must pay. It is likely that your landlord will require you to have liability insurance for incidents that occur within your leased space as well as accidents that occur outside the leased space but are caused by you, your operations, or your employees.
Your CGL policy also provides product liability coverage. This is especially important if you sell special diet food, supplements, or other products. Product liability insurance covers a business’s financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of the product. In some instances, product liability insurance may also cover the manufacturer or seller of the product for defective design and failing to warn a buyer of a particular danger.
Product liability insurance is not just for manufacturers. Any company that participates in bringing a faulty product to market can be included in a lawsuit and held liable for damages to the user. The resulting payouts for medical costs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business.
It’s important to discuss your product liability exposures with your independent insurance agent. You may need to add more coverage than what is in included in a basic CGL policy.
Do Diet Centers Need Professional Liability Insurance?
A professional is someone who possesses special knowledge and skill in a certain area and uses that skill to provide advice and services to clients. Traditionally this definition has applied to doctors, lawyers, architects, engineers, and accountants. But today the definition of a professional or professional service has an increasingly expanding scope, and the need for professional liability insurance is becoming more important across a wide variety of industries.
Diet centers likely need professional liability insurance, also known as errors and omissions (E&O) insurance. It covers your business from negligence claims that result from mistakes or failure to perform professional services. These types of claims can easily arise when you are providing diet counseling to countless numbers of people. If a customer feels that negligent counseling or other diet services have caused harm, they can sue you — even if the claims are unfounded.
Professional liability insurance covers professionals, their partners, their employees and the partnership or corporation for damage caused by providing or failing to provide professional services. Most E&O policies cover judgments, settlements, and defense costs. Even if the claims are found to be false, defense costs alone can be financially devastating for any company, and small businesses in particular.
There is no standard policy language for professional liability policies, and every type of professional or professional services firm has different types of exposures that need to be considered. You will need to work closely with your independent insurance agent to make sure your policy fits your needs.
What Does Diet Center Property Insurance Cover?
While you most likely lease the space for your diet center and do not have a building to cover, you still need insurance protection for the business property on your premises. Talk to your insurance agent about coverage for office furniture, fixtures, computers, signs, glass, and any other contents of your space. Commercial property insurance provides coverage for property damage that occurs as a result of fire, theft, vandalism, weather events, and other covered perils.
Your business property policy may also include coverage for business interruption, which helps you pay for expenses like rent and employee salaries if your weight loss center must close to make repairs after a fire, storm, or some other covered event.
Talk to Your Agent about Additional Diet Center Insurance Policies
Diet centers may have a variety of additional exposures that can be mitigated to some extent with tailored business insurance. Your independent insurance agent can help you determine if you have a need for the following:
- If your CGL policy does not provide sufficient liability protection for your needs, consider commercial umbrella insurance. It adds an extra layer of protection with liability coverage above and beyond the limits of your CGL and certain other liability policies. It kicks in when the limits of your other applicable policies have been exhausted. If a customer or another third party sues you, this coverage can be the difference between financial devastation and complete recovery.
- Do you deliver food, supplements, or other products to your customers? If so, you need commercial auto insurance. Business auto insurance covers your company’s vehicles and drivers (cars, SUVs, vans and trucks) that are damaged or injured in a collision or some other type of event. If you or your employees drive personal vehicles for business purposes, you must have non-owned or hired auto liability coverage to protect your company if an employee is an accident while out making deliveries.
- Flood insurance and earthquake insurance may be necessary if you live in an area that is prone to these natural disasters. Talk to your independent insurance agent about your need for this type of coverage.
- Employment practices liability insurance provides coverage if an employee sues you for discriminatory employment practices.
- If you offer online diet counseling, products, or services, or simply process information electronically or keep electronic records, the costs associated with a single cyber breach can be far-reaching and devastating. A cyber liability insurance policy can cover everything from legal and forensic services to public relations costs and liability judgments if sensitive customer data is exposed.
- If you have employees, you might consider offering employee benefits — group health insurance, group life insurance, short- and long-term disability insurance, and more — to your employees.
- Crime coverage is essential in any retail environment. It protects your business from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. It also covers theft or vandalism by customers or other visitors.
How Much Does Diet Center Insurance Cost?
Diet center insurance costs will vary depending on the size of your business and the coverage you need. A multi-location diet center with a large online presence will pay more than a single-location, brick-and-mortar only establishment. A diet center in a hurricane zone might pay more than one located away from the coast.
With so many variables (e.g., number of employees, types of services and products offered, size and location of your building(s), etc.), insurance costs can be hard to predict.
But an independent agent can guide you though your options so you get coverage that meets your budget.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right diet center insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2020, Consumer Agent Portal, LLC. All rights reserved.