What is a health club bond?
SuretyBonds.com is legally licensed to issue health club bonds nationwide. Whether you manage a health club in Florida, Tennessee or New Jersey, we can bond you!
Health club bonds are a financial guarantee acquired by health clubs wishing to collect fees from its members upfront. What would happen if a health club unexpectedly closes, ending all prepaid memberships prematurely? Many states require health club owners/operators to file a surety bond before they can be legally licensed.
How do health club bonds protect customers?
The health club bond binds three parties together to ensure industry standards are sustained and protect members from losing their investments.
- The principal is the health club owner/operator purchasing the bond.
- The obligee is the state agency requiring the bond.
- The surety is the underwriter providing the bond.
Health club bonds protect clients in the event their health club goes out of business, in which case the bond amount would be used to refund membership fees.
State specific costs
Bond amounts and regulations accompanying each license are established on the state level, and some states require health clubs with more than one location to post supplementary bonds. Thus, the costs and requirements of health club bonds vary greatly across all 50 states. Additionally, the bond amount is based on the membership packages offered by individual clubs. For example, health clubs in the state of New York are subject to the following bond requirements:
- $50,000 of coverage if they offer 12 month memberships
- $100,000 of coverage if they offer 12-24 month memberships
- $150,000 of coverage if they offer membership contracts lasting up to 36 months
Select your state below for more information about health club bonds in your area. Find out your exact rate by getting a free, no-obligation surety bond quote today or call 1 (800) 304-4358 to speak with a surety expert.
What qualifies as a health club?
Health club bond requirements are not limited to health clubs that exclusively offer fitness training. There other types of prepaid membership health organizations that may be required to post a bond with their state, including the following: