Spa and Health Club Insurance information manual - unwind and read about how our insurance broking services can help your business.
Making sure your clients are in a peaceful state of mind is often an important outcome of your spa and health club business services. If your clients are at peace when they leave the spa, they will generally come back for repeat business. Our job as insurance specialists is to make sure you feel the same way when it comes to knowing that your business is protected with the right insurance policy. If you are aware your business is not properly covered it can often create nervousness when providing services to your clients.
Why do you need insurance?
Many types of claims can affect a business severely if not handled correctly. Having a reputable insurer behind your business is key to making sure that any claims are dealt with in an efficient manner as an insurer will have the right infrastructure in place to do so. Handling a claim on your own in our current litigious society can often be a lengthy process and a struggle without the correct legal support. It can also be hugely financially detrimental to your business if you’re uninsured as defending a claim yourself can costs thousands of pounds and upwards.
What types of insurance are there to support a spa / health club business?
Premises
Many business owners rent the premises from property owners who already have their own insurance and therefore do not need to purchase this type of cover. However, sometimes the lease agreement requires that the lessee purchases the buildings insurance, it depends on the contractual agreement in place. If you own the building it would be wise to get it fully insured for the rebuild cost along with the business policy under one insurer which means that any claims that come in can be dealt with easily and efficiently.
Public & Products Liability
Covering your legal liability in respect of claims made against you for bodily injury and 3rd party property damage. This type of cover is highly important for a health related business as one of the most likely claims that could arise is going to be from a customer getting injured while under your care. This could range from a slip on a wet surface to an injury being caused by an employee giving a wrong instruction. Having the liability cover in place makes sure you’re covered if a member of the public makes a claim against you. it’s also wise to include a form of treatment liability within the policy if you provide additional treatments for your clients.
Employers Liability
If your spa or health club business employs staff, employers liability could be a legal requirement. As a broker we can give you impartial advice on this type of insurance. The definition of an employee can vary, but generally under a contract of insurance, freelancers, employees and volunteers will be defined as employees. On the other hand if you only use bona-fide sub contractors there may be no need to purchase EL. This cover is provided depending on how you are running your business.
Specialist Equipment
You may have bought equipment which needs to be insured as part of a lease agreement or it is generally of high value and you are worried that a loss such as a fire or flood could cause financial harm to the business. It is therefore important that any equipment the business uses is insured against losses such as fire, theft, flood, malicious damage etc.
Business Interruption
Business interruption insurance will protect your business against a loss of income following a material loss. This cover will pay your loss of revenue over a 12/18/24/36 month period depending on the level of cover you opt to choose. It’s an optional cover, but many spa and health club business owners elect to buy because if they were not able to trade, the loss of revenue could lead to closure as they need to still pay staff costs, rent, rates etc.
Money
If you hold cash on site it can often be wise to purchase some cover for this. It’s a small price to pay if there is theft or an insured loss that causes the cash to be irrecoverable. Limits on a business package policy are usually up to £5,000 but specific requirements can be negotiated.
Why use a broker?
A broker can help you arrange the right cover which is tailored to your business. Most Spas and health clubs are not identical and offer varying services to their clients. There are many types of spa which our underwriters can cover, such as health clubs, day spas, floatation tank centres, hammam spas etc. Some of the insurance jargon is often confusing and a broker can explain the various covers and why they are needed.
Brokers can also approach different markets on your behalf, helping you obtain the right insurance terms at the lowest price. Brokers often have access to broker-only markets that can assist on many types of specialist requirements. As brokers are the agents of the client, they will work for your best interests as doing so will help them gain the business. A broker can help with discounts and negotiating enhanced cover on your behalf.
A broker will provide you with clear information and insurance documentation. They will also manage your renewals for you ensuring the business is continually covered using the most recent information, making sure the cover is still relevant to what your business offers. An example of this would be, if you start offering a new service, a broker can update your documentation for you. Providing the right information to insurers is imperative as the legislation covering a fair presentation of risk (Insurance Act 2015) may cause a claim to be declined if the business risk information is not presented fairly. Brokers can assist in this area.
Insurance brokers are legally required to hold their own professional indemnity insurance which gives a customer greater confidence in the service they provide, knowing that the broker is fully insured for any advice they give.
As we have explained in our comprehensive manual on spa and health club insurance above, there are many reasons why it’s important to get your business properly covered and how an insurance broker can help. At Activity Business Cover we have helped many satisfied clients arrange and place their insurance. Whether you already own a spa or health club or are thinking about opening one, please feel free to contact us on the link below and one of our experts will help guide you to a relaxing insurance experience.
