So, you’ve decided you need fitness insurance as a professional in the fitness industry. As you might already know, the process of applying for coverage and understanding your policy can be confusing. To make your application process a bit easier, let's break down the points of various terms you may encounter when purchasing personal trainer liability insurance. Also see my other review of personal trainer insurance.
1. Professional Liability Insurance
This policy provides coverage for claims or lawsuits that arise in the provision of professional services, or when professional services are administered, as a fitness professional. 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
There are two types of Professional Liability Insurance policies: Occurrence Form Coverage and Claims-Made Coverage. Occurrence Form Coverage offers lifetime coverage for the policy period. In layman’s language, if you were insured when an incident happens, which results in a claim or suit against you, you can seek coverage under your policy. This holds true, even if you can your policy or allow your policy to lapse.
3. Claims-Made Coverage
A Claims-Made Insurance policy provides coverage for claims that occur while the policy is in effect. Typically, the policy will start with a lower premium, which increases as liability increases over time.
4. Tail Coverage
Tail Coverage is a term you may encounter with Claims-Made coverage. You can purchase Tail Coverage, in order to extend the amount of time you can report a claim after the policy expiration date of a Claims-Made policy. A “tail” is also known as an “Extended Reporting Period.”
Save yourself some stress and get up to speed on the basics of your insurance policy!
Information provided by CPH and Associates