What insurance should I review when buying a personal training studio?

Injury claims are a real possibility in a training studio, which is why the insurance file belongs near the top of your list when you look at a studio. A buyer who leaves it to the end can find out too late that the cover was thin, that it ended with the sale, or that a claim was already waiting. Here is what to ask for and what to ask about.

Liability cover for the studio and its trainers

Ask for copies of every current policy, with the schedules and endorsements. Check who is named as insured and whether each trainer, whether an employee or a contractor, is covered by the studio’s policy or needs one of their own. If contractors are expected to carry their own cover, ask to see proof. An insurance broker can tell you whether the wording fits how the studio actually works.

Claims history

Ask for the loss runs, which are the insurer’s record of past claims, and for any incident reports kept by the studio. Look for patterns, such as the same type of injury or the same piece of equipment. Ask whether anything has happened that could still turn into a claim later, even if it has not yet.

Waivers, equipment and the space

• Whether every client has a signed waiver and health questionnaire on file, and where they are kept
• Cover for the equipment, and whether any of it is leased or financed
• Whatever the lease requires the tenant to carry
• Cover for loss of income if the studio has to close for a time

Cover from closing day

Ask the insurer or broker whether the seller’s policies would transfer to you, and when your own cover would need to start to avoid a gap at closing. Our answer on what insurance to check when buying a detailing business covers a similar list for another trade.