When you’re running a gym, you’re constantly juggling responsibilities: members, coaches, facilities, and operations. It’s a lot. One area that often gets overlooked is what happens when an employment relationship doesn’t end well.
Let’s say you have to let a coach go. Maybe it’s due to performance issues or scheduling conflicts. A few weeks later, you receive notice of a claim alleging wrongful termination, discrimination, or even harassment.
That’s where Employment Practices Liability Insurance (EPLI) comes in.
What is EPLI?
EPLI is a separate type of insurance coverage that protects your business when an employee or contractor brings a claim related to how they were treated or dismissed. This coverage is not included in your Commercial General Liability (CGL) policy. It must be added separately, and it is becoming increasingly important for gym owners.
What Does It Cover?
EPLI helps cover your defense costs if someone accuses your business of:
- Wrongful termination
- Discrimination (based on race, religion, gender, etc.)
- Harassment
- Retaliation or hostile work environment
Even if the claim has no merit, defense expenses alone can add up quickly. EPLI ensures you’re not footing that bill entirely on your own.
Who’s Covered?
This protection applies to both W-2 employees and 1099 independent contractors—a key point for gyms that work with freelance or part-time coaches. If your coaches work with you in exchange for payment, EPLI helps protect you if things go south.
However, it’s important to know: if there’s a trade agreement and no money involved, coverage won’t apply. The policy requires a formal paid working relationship.
Why This Matters for Gym Owners
You may never face a legal issue, but if you do, having EPLI in place can make a big difference. Gym owners often have tight-knit teams, and it’s easy to assume that everyone’s on the same page. But misunderstandings or disagreements can happen, and when they do, it helps to be protected.
Not Sure If You Have EPLI?
Many gym owners assume their standard liability policy covers employment-related claims—but it doesn’t. We’re happy to walk you through what your current coverage includes and help you determine if EPLI should be added.
