Owning a health club today is considerably different than it was twenty or even ten years ago. Increased competition for the same market share has forced all club owners to improve their business skills or run the risk of having to close their doors. Owners are constantly looking to not only add more members to the club, but they have also learned that to be successful, you have to hang on to the members who are already there and generate additional income by offering services and products that enhance the entire fitness lifestyle. Club owners who excel at member retention, marketing, and profit center development all have one thing in common; excellent operating procedures and systems.
In addition to making more money, another benefit that club owners receive by constantly improving their operational systems and procedures is they have fewer claims. A well run club places customer service at a premium; and the fundamentals for providing legendary service begins always
- Review your employee manual: Most of us have not updated our employee manuals in some time. There are also several new club owners who have never gotten around to developing an employee manual. A well written manual sets a foundation for staff training and can help eliminate employee liability issues before they start. Your employee manual should clearly outline what is expected of the employee and address your rights as employer to terminate the relationship. Your manual should also contain your Anti-Discrimination and Anti-Sexual Harassment policies.
- AED’s: Many states have already passed legislation that will require health clubs to have an Automated External Defibrillator in 2005 and it is just a matter of time before AED’s are the industry standard. Many insurance companies are already developing endorsements that will exclude liability protection for those clubs that do not comply with mandated AED legislation. Even if you are in a state that has not yet addressed the AED issue, it is still a good idea to have one. They are a proven device for saving lives.
- Digital Video Surveillance Systems: Digital video surveillance is an excellent tool to help reduce crime in your parking lot and mysterious disappearance of your inventory. However, it is an even better tool for staff training and capturing incidents that occur at your club. Since most accidents that occur at a health club are caused by “member malfunction”, a video that captures the event is an invaluable tool to help curb your liability. A good surveillance system should have cameras placed on all workout areas, front counter, parking lots and common walk areas. The cost of these systems are reasonable (around $10,000 for a typical 20,000 square foot club) and will allow a club owner to monitor his/her club(s) from anywhere in the world.
- Modify or update your Waiver: More and more jurisdictions are upholding a well written waiver of liability and hold harmless agreements. However, many clubs still bury their waivers on a membership contract or have the waivers printed on the back side of an agreement. At the very least, there should be a signature line or a box for the member’s initials required below the waiver that demonstrate the member has read the agreement. We recommend that a separate waiver/release form be utilized that becomes a permanent fixture in your member’s file.
- Invite your Mom to the club for an inspection: A great way to obtain an unbiased honest evaluation of your club’s physical appearance is to ask your mother to come by and point out any flaws she sees in the club. She will find that you have exposed electrical cords, rusted cables, torn carpet, mold accumulation, ripped upholstery and sloppily dressed staff. Most club owners get so use to their environment that they fail to see the minor problems that can cause potential premises related claims. If your mother is comfortable in the club, it is a great indication that you have a well run operation. A clean club usually reflects a safe club.
- Get to know your member: Finally, the best risk management plan begins with good basic customer service. As club owners, we often get caught up in the day to day business of running a club and begin to lose sight of the reason we got in this business in the first place. Sometimes we tend to lose focus on making changes in people’s lives and are distracted by the disruptions of owning a business. If we and our staff maintain a commitment to helping our members reach their fitness goals, the rest of the “business” usually takes care of itself. Make it your staff’s number one goal to turn good customer service in to GREAT customer service. Remember; friends don’t sue friends.
For free sample copies of waivers, employment practices documents, or other risk management materials, please contact me at ken@clubinsurance.com. I want to wish all of you a great holiday season and hope you have a terrific 2005. I especially want to thank all of my clients who have supported us over the years. Your business is truly appreciated.
