Why Health Clubs Need Surety Bonds
2/4/2015 3:30:00 PM
Surety bonds are designed to protect various entities from various risks. In particular, many of them protect consumers from businesses not keeping their promises. So, why would a health club need a surety bond?
It's not because people don't get in shape or lose weight. It's not because people don't stick to a New Year's resolution and go every week. The reason a health club might want a surety bond is so consumers are protected in the event that they have to close down and cancel memberships.
How does this work? Let's say you are a health club that opens in 2015 and 200 members sign up for the annual membership. They each pay $500. If something happens to force you to close before the end of the year, those members just lost money; the year isn't up and they paid for a year.
If a member makes a claim to recoup their fees, the surety bond will pay them for the money they lost. You will then have to reimburse the bonding company for the claim.
So, why get the surety bond?
- Your state might require you to have a surety bond before being licensed.
- You can advertise that you have a surety bond, which tells customers that you want to protect them in case the unexpected happens.
If you own a health club, contact an independent insurance agent today. Give your customers confidence in your health club by letting them know you have a surety bond.
Protect the integrity of your business. Call La Familia Insurance
at (888) 751-7511
for a Dallas surety bond
Tags : surety bonds, health clubs, consumer protection, Dallas, Texas, insurance, Dallas TX insurance