Over the past few years, a growing number of businesses outside the insurance industry have started selling their own “custom” insurance products. On the surface, it might seem like a convenient way to get coverage from a brand you already trust. But what’s really happening behind the scenes?
The truth is, most of these companies aren’t insurance providers at all, they’re just putting their name on a pre-packaged policy from an outside carrier. This is called white-labeled insurance, and while it may look like a seamless solution, the reality is much different.
Why Are Non-Insurance Companies Offering Insurance?
For many businesses, adding insurance to their product lineup is simply another way to increase profits. These companies don’t specialize in risk management, policy structuring, or claims handling. Instead, they outsource those responsibilities to third-party insurance carriers and claims administrators—meaning the company you purchased the policy from isn’t the one actually managing it.
This raises an important question: who is truly responsible when a claim is filed?
The Risks of White-Labeled Insurance for Gym Owners
White-labeled insurance policies are often built for broad, general use rather than the specific risks that come with operating a gym. This can result in:
- Vague policy language that leaves room for disputes over coverage.
- Limited protection for industry-specific risks, such as injuries from high-intensity training, class-based liability, or equipment-related accidents.
- Third-party claims administrators (TPAs) who make decisions based on financial outcomes rather than industry expertise.
At AGuard, we focus exclusively on the fitness industry. We understand the unique challenges gym owners face and ensure that policies are written with precise, industry-relevant language to provide comprehensive protection when it matters most.
In our next post, we’ll take a deeper look at why white-labeled insurance policies can present risks to gym owners and how to ensure your coverage is built to protect your business.
