AVOIDING LIABILITY BLOG

Personal Trainer Insurance Coverage Terms Explained

Fitness Insurance can be daunting, and when you apply for a policy, you might feel overwhelmed by the terms and policy forms. What did you sign up for, anyway?

That’s why we want to take a minute to explain some of the more common terms, to make sure you’re familiar with your liability coverage. And remember, we are always happy to talk to you about any questions you might have.

 

Trainer Insurance Terms and Definitions:

  1. Professional Liability Insurance for Fitness Trainers– This policy provides coverage for claims or lawsuits that arise in the provision of professional services (when professional services are administered), as a fitness professional. This type of policy is sometimes referred to as “Malpractice Insurance” or an “Errors and Omissions” policy. With this coverage, you’re protected, if, for example, a client alleges negligence during a session.
  2. Occurrence Form Coverage – Grants you lifetime coverage for the policy period. In layman’s terms, if you are insured when an incident happens that results in a claim or suit against you, you can seek coverage under your policy. The premium will remain the same each year and the set limits of the policy apply: e.g. a $1-million policy.
  3. Claims-Made Coverage – Covering claims while the policy is in effect, you start with a lower premium, which increases as liability increases.
  4. Tail Coverage – This applies for a Claims-Made policy only. Tail Coverage is the term for purchasing additional coverage time for the policy, after the expiration date. This may also be known as an “Extended Reporting Period.”
  5. Retroactive Date – This term refers to the original effective date for a Claims-Made policy. The policy will not provide coverage for incidents that occur prior to this date.
  6. Limits of Liability – The amount of coverage you have under your Professional Liability Insurance policy. For example, $1,000,000 each occurrence (per claim) / $3,000,000 aggregate (total for the policy period).
  7. Additional Insured – A person or organization not automatically included as insured when the policy is enacted. Additional Insureds should be considered if the policyholder has a close relationship with that party; if both parties would work together frequently and come into contact with the primary holder’s clients. For example, an employer.
  8. Certificate Holder  – The entity that is provided a certificate of insurance as evidence of insurance. This definition extends to anyone who has requested proof of insurance.

Once you know the basic terms and understand the definitions in your fitness trainer insurance policy, it’s really not that difficult to follow along. Securing coverage for yourself shouldn’t  be a challenge, and that’s why we’re here to help translate industry jargon into comprehensive information.

ABOUT THE AUTHOR

CPH & Associates

CPH & Associates

Over the last decade, more than 500,000 people chose CPH & Associates for liability insurance. Because our business is specialized, we are able to focus on your liability needs in a way that bigger companies are not. Our team of associates represent over 50 years of collective experience in this field, and we are able to serve a large client base while maintaining a small-office approach.

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