According to the NCPD report, public liability insurance premiums have surged by 40% since 2015, a rate that surpasses general inflation. This upward trajectory began in 2017 and is largely attributed to a worsening claims experience. In response, many businesses, including those in the fitness sector, have opted for policies with higher deductibles, effectively assuming more risk to manage escalating costs.
Bodily injury claims have been a primary driver of increased premiums, with average finalised claim sizes growing by 5.5% annually since 2013. Notably, work injury claims have doubled in size compared to other bodily injury claims, significantly contributing to cost pressures. Additionally, there has been a rise in psychological claims, further inflating overall claims costs due to social, legal, and medical factors.
Professional indemnity insurance has also experienced a premium hike, rising 27% since 2015. Large and corporate businesses have faced the steepest increases. While finalised claims costs have remained stable, newer data suggests that incurred costs are trending higher.
For fitness professionals, these rising costs underscore the importance of proactive risk management and comprehensive insurance coverage. To navigate this challenging landscape, consider the following strategies:
- **Review and Update Insurance Policies:** Regularly assess your insurance coverage to ensure it aligns with your current business operations and risk profile. This includes evaluating coverage limits, deductibles, and policy exclusions.
- **Implement Robust Risk Management Practices:** Develop and enforce safety protocols to minimize the risk of client injuries. This can include proper equipment maintenance, staff training, and adherence to industry standards.
- **Stay Informed on Industry Trends:** Keep abreast of developments in the insurance market and regulatory changes that may impact your coverage and premiums.
- **Consult with Insurance Professionals:** Engage with insurance brokers or advisors who specialize in the fitness industry to obtain tailored advice and explore cost-effective coverage options.
By taking these steps, fitness professionals can better manage the financial impact of rising insurance costs and ensure their businesses remain protected against potential claims.
