Why Every Gym Needs the Right Insurance: Protect Your Business and Members

Gym insurance for fitness centres in Australia is essential due to the high-risk environments gyms operate in. Heavy equipment, group classes, personal training, and constant member movement mean even a minor incident can lead to costly claims, downtime, or reputational damage. Having the right insurance helps gyms manage these risks and continue operating with confidence.

As part of Australia’s sporting and active industries, gyms face similar risks to clubs and associations, including duty of care, asset protection, and governance responsibilities. From talking with hundreds of clients in the sports sector, Gow-Gates has seen which risks are most common and how gyms can structure insurance that reflects real operations rather than generic policies.

Insurance does more than protect your balance sheet, it supports compliance, builds confidence with members and landlords, and helps ensure your gym can continue operating when challenges arise.

Gym Insurance for Fitness Centres in Australia: Key Risks to Understand

Gyms operate in high-interaction environments where people of different ages, abilities, and experience levels share equipment and facilities. Claims often arise from everyday situations rather than extreme events.

Common risk areas include:

• Slips and falls in change rooms, showers, or high-traffic areas
• Injuries linked to incorrect equipment use or layout
• Claims connected to personal training or group fitness instruction
• Damage, theft, or breakdown of essential equipment
• Temporary closure following fire, storm damage, or vandalism

Understanding these risks is a critical step when considering gym insurance for fitness centres in Australia, as it helps ensure cover responds effectively when issues arise.

Case in point: The Hard Rock Gym in Harden had to temporarily close after a February 2025 storm caused their ceiling to collapse and water to seep into the floor. While the gym relocated classes to a nearby hall, such natural events highlight why having insurance to cover property, equipment, and business interruption is essential.

Do Gyms Need Public Liability Insurance?

Yes. Public liability insurance is a fundamental component of gym insurance for fitness centres in Australia, regardless of business size.

This cover protects your business if a third party, such as a member, visitor, or contractor, suffers injury or property damage due to your operations. In a gym setting, incidents can occur quickly and without warning, even when supervision and safety measures are in place.

Public liability insurance typically covers legal defence costs, investigation expenses, and compensation payments awarded to injured parties. It is also commonly required by landlords, councils, and facility owners as a condition of lease or access. For most gyms, public liability insurance forms the foundation of a broader fitness industry insurance program.

Example: In January 2026, two Pilates studios were damaged by suspicious fires, causing temporary closures. While no injuries occurred, these incidents demonstrate why gyms need insurance to recover financially from unexpected events.

Professional Indemnity and Protecting Members

Gyms and fitness centres have a clear duty of care to provide appropriate instruction and supervision. This is particularly important for businesses offering personal training, group classes, coaching, or wellness advice.

Professional indemnity insurance protects against claims alleging negligence, incorrect guidance, or failure to meet professional standards. Across the sporting sector, Gow-Gates has learned that claims often stem from misunderstandings around instruction or expectations rather than deliberate wrongdoing.

Depending on your business model, gyms may also consider additional covers designed to support injured participants. Personal accident-style solutions are commonly used across organised sport to help manage serious injuries and demonstrate a commitment to participant welfare.

Protecting Gym Equipment and Business Continuity

Gym equipment is a major investment. Damage, theft, or mechanical failure can disrupt operations and affect revenue.

Property and equipment insurance protects:

• Cardio and strength machines
• Free weights and functional training equipment
• Fit-outs, flooring, and fixed assets

Business interruption insurance can cover lost income and ongoing expenses if your facility must close temporarily due to an insured event. Regular reviews ensure your coverage keeps pace with new equipment and business growth.

Understanding the Role of Brokers and the Steadfast Network

Fitness centres benefit from working with brokers who have strong market access, specialised risk management expertise, and tailored insurance programs with ongoing support. Brokers who are members of the Steadfast Network have access to industry-leading resources and risk management tools, which can help structure insurance to reflect the real risks of a gym.

For example, Gow-Gates Insurance Brokers is a Steadfast Network member with experience supporting gyms and sporting facilities across Australia.

Well-structured insurance allows gym operators to focus on supporting members and managing their business, while being prepared for unexpected events.

Disclaimer:

The response of an insurance policy to a claim can vary depending on each particular circumstance and the terms and conditions of the policy. The information provided in this blog post is for general informational purposes only and does not constitute legal, financial, or insurance advice. While we aim to keep the content accurate and up to date, insurance needs vary widely depending on individual business activities, industry, and risk profile. Before making any decisions regarding insurance coverage, readers should consult with a qualified insurance broker or advisor to ensure that the policy they choose is appropriate and sufficient for their specific business circumstances. We accept no responsibility for any loss or damages resulting from reliance on the information in this post.