Leisure Centre & Sports Facility Insurance
This page is for whoever owns or runs the building: a leisure trust operating a council centre, a private gym or health club, an indoor sports centre, or an investor letting a facility to an operator. Clubs that use the facility have their own insurance needs, covered on our sports clubs pages; here the focus is the premises, the plant and the operation.
Leisure buildings carry expensive plant. A pool hall has filtration, heating and dosing systems, a chemical store and air handling working constantly in a humid environment. A gym holds rows of powered fitness equipment, much of it leased. When the plant fails or the building is damaged, the cost of repair and the income lost while members go elsewhere can both be considerable.
Who is responsible for what is often set by a lease or a management contract rather than ownership. Many leisure centres are owned by a local authority and operated by a trust or contractor under an agreement that allocates insurance, repairs and lifecycle replacement of plant, and those allocations need to be matched by the policies each party holds.
We can advise leisure operators, owners and investors on insuring buildings, plant and equipment, their liability to members and the public, and the membership and admission income the facility depends on.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Pool plant and chemicals
Pool treatment chemicals can produce toxic gas if mixed or delivered into the wrong tank, and plant rooms contain pumps, heaters and dosing equipment under constant use. Chemical incidents, plant failures and corrosion are the serious risks, and HSE guidance on managing swimming pools sets out what operators are expected to do.
Slips and wet areas
Pool surrounds, changing rooms and showers are wet and used barefoot. Slip claims are a frequent liability issue for leisure operators, and floor surfaces, cleaning regimes and records of inspections are what allow them to be defended.
Drowning and serious injury
Swimming pools bring the risk of drowning and serious injury. Lifeguard numbers and qualifications, pool supervision arrangements and emergency procedures are the first things insurers ask about.
High value fitness equipment
Treadmills, bikes, rowers and strength equipment represent a large investment, often leased or financed. Theft, damage, electrical breakdown and water ingress all affect it, and the lease may require the operator to insure it to replacement value.
Saunas, steam rooms and legionella
Saunas are a fire risk if poorly maintained or misused, and warm water systems in spas, showers and steam rooms need control for legionella. Both require a documented maintenance and monitoring regime.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Buildings and plant
The structure, pool tanks, plant rooms and fixed equipment on a reinstatement basis, including the specialist cost of rebuilding pool halls and the plant within them.
- Structure and pool tanks
- Pool plant, heating and air handling
- Car parks, floodlights and external facilities
- Professional fees and debris removal
Contents and fitness equipment
Gym equipment, reception and café fittings, IT and access control systems. Leased equipment should be declared so that the insurer and the leasing company are both clear about who is covered.
- Owned and leased fitness equipment
- Access control and IT systems
- Café, retail and reception fittings
- Stock for retail and catering
Engineering and breakdown
Sudden breakdown of pool plant, boilers, air handling and electrical systems, with statutory inspection of pressure systems and lifting equipment where required.
- Breakdown of pool and heating plant
- Air handling and electrical systems
- Statutory inspections where required
- Deterioration of stock after breakdown
Public and products liability
Injury to members, visitors and the public, including pool users, gym users and spectators. Products liability applies where the facility sells food, drinks or supplements.
- Members, visitors and pool users
- Classes and activities run by the operator
- Food, drink and retail sales
- Limits often £5m or £10m
Business interruption
Lost membership fees, admissions, lettings and secondary income while the facility is closed or restricted. The indemnity period should allow for members who cancel during a closure and do not rejoin straight away.
- Membership and admissions income
- Lettings, events and catering
- Increased costs to keep members
- Indemnity period of 12 to 24 months or more
Employers' liability
Lifeguards, instructors, maintenance and reception staff are employees, and employers' liability is a legal requirement once you employ people. It can be arranged where required, subject to the policy terms, and freelance instructors should be considered separately.
- Lifeguards and instructors on payroll
- Plant and maintenance staff
- Freelance instructors declared separately
- Arranged subject to policy terms
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- Ownership and operating structure: owned, leased, or run under a management contract
- Facilities: pools, gyms, sports halls, saunas, climbing walls and external pitches
- Pool plant, chemical storage and delivery procedures, and plant room maintenance records
- Lifeguard arrangements, qualifications and pool supervision policy
- Fitness equipment values, and whether owned or leased
- Floor surfaces in wet areas, cleaning and inspection regimes
- Legionella risk assessment, monitoring and sauna maintenance
- Membership numbers, income profile and claims history
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Facilities and pools
A facility with pools, saunas and climbing walls carries a higher liability and property rating than a dry gym or sports hall.
Plant and maintenance
The age and condition of pool and heating plant, and documented maintenance regimes, affect both property and engineering terms.
Operating structure
Owned, leased and contracted facilities each allocate insurance differently, and the scope of cover required follows the contract.
Membership and claims history
The size of the membership affects the business interruption sum insured, while a history of slip or pool claims influences the liability terms.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Gradual deterioration and corrosion
The humid, chemical environment of a pool hall gradually corrodes steelwork, fixings and plant. That wear is a maintenance matter rather than an insured event, and it is a common reason claims are reduced.
Contract obligations not matched by the policy
Where a management contract or lease requires one party to insure certain items or carry liability limits, the policy needs to reflect it. Gaps between what the contract says and what is insured can leave the operator exposed.
Freelance instructors' own liability
Self employed personal trainers and class instructors should generally hold their own liability insurance. The operator's policy may not cover their professional advice or the way they run a class.
Chemical incidents outside procedures
Where a chemical release follows a failure to follow storage or delivery procedures, insurers may look closely at the claim. Documented procedures and training help both safety and the claim position.
Common questions
We operate a council-owned leisure centre. Who insures the building?
It depends on the management contract or lease. In some arrangements the council insures the building and the operator insures contents, liability and income; in others the operator takes on more. The contract should be checked clause by clause against the policies held by each party.
Is our leased gym equipment covered?
It can be, if declared. Many leasing agreements require the operator to insure leased equipment and may require the leasing company's interest to be noted on the policy.
What do insurers expect around pool chemicals?
Safe storage, segregation of incompatible chemicals, controlled delivery procedures, trained staff and documented emergency plans. HSE guidance on managing swimming pools sets out what is expected, and insurers will typically ask whether it is followed.
Does business interruption cover lost membership income?
It can, where the closure follows an insured event such as a fire, flood or plant breakdown covered under the policy. The indemnity period should allow for the time needed to win members back as well as the repair time.
Do freelance personal trainers need their own insurance?
Generally yes. Self employed instructors should hold their own public and professional liability, and many operators make it a condition of working at the facility. The operator's policy may not extend to their instruction or advice.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.