In every type of business, there is always a threat of risk facing the company. This causes the owners of the business to develop risk management programs to decrease the likelihood of the risk occurring. Business owners will evaluate and prioritize risks, then take action by insuring against them. Some of the major risks that “The Gym” will face relate to product liability, business liability, and fire.
Product liability is insurance that protects the business from claims related to the usage, sale, and production of goods offered to the public. The Gym needs this to cover any injuries that one of our customers could sustain while using our equipment. For example, if a customer got hurt while using one of our machines, they could try and sue our supplier for a faulty piece of machinery. This type of insurance would protect our supplier, so they are not held responsible for any injury that might be caused while using the machine.
Business liability is insurance that protects a company or business owner in the event of a formal lawsuit. This type of liability involves coverage that includes any financial liability incurred in addition to any expenses related to the company’s legal defense. “The Gym” will have business liability insurance to protect itself from any lawsuit made by other companies or customers. If a customer would try and sue “The Gym” this type of insurance would protect us and also help us with any type expenses that would be placed.
Fire insurance is bought to cover the cost of any damage to a property caused by fire. It is a specialized form of insurance that is designed to cover the cost of replacement, reconstruction or repair beyond what is already covered by the property insurance. This is an important type of insurance that The Gym needs because there is always a risk of a fire occurring. The fire insurance would protect The Gym if one would occur. Any type of machine or piece of equipment that is insured under the fire insurance would be replaced if damaged by a fire. This would save the gym a large sum of money if a fire occurred and it did not have the insurance. If a fire occurred without this insurance, then the business would have to purchase new equipment and pay out of pocket.
Product liability is insurance that protects the business from claims related to the usage, sale, and production of goods offered to the public. The Gym needs this to cover any injuries that one of our customers could sustain while using our equipment. For example, if a customer got hurt while using one of our machines, they could try and sue our supplier for a faulty piece of machinery. This type of insurance would protect our supplier, so they are not held responsible for any injury that might be caused while using the machine.
Business liability is insurance that protects a company or business owner in the event of a formal lawsuit. This type of liability involves coverage that includes any financial liability incurred in addition to any expenses related to the company’s legal defense. “The Gym” will have business liability insurance to protect itself from any lawsuit made by other companies or customers. If a customer would try and sue “The Gym” this type of insurance would protect us and also help us with any type expenses that would be placed.
Fire insurance is bought to cover the cost of any damage to a property caused by fire. It is a specialized form of insurance that is designed to cover the cost of replacement, reconstruction or repair beyond what is already covered by the property insurance. This is an important type of insurance that The Gym needs because there is always a risk of a fire occurring. The fire insurance would protect The Gym if one would occur. Any type of machine or piece of equipment that is insured under the fire insurance would be replaced if damaged by a fire. This would save the gym a large sum of money if a fire occurred and it did not have the insurance. If a fire occurred without this insurance, then the business would have to purchase new equipment and pay out of pocket.