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Information on Health Club Bonding

We are  legally licensed to issue health club bonds nationwide. Whether you manage a health club in Florida, New York, Tennessee or New Jersey, we can help!

As physical fitness becomes an increasingly popular trend, health clubs – whether large chains or independently owned – continue to pop up all over the country. In fact, more than 50 million Americans currently have memberships at health clubs. So what happens when a health club closes unexpectedly, ending prepaid memberships prematurely? To keep members from losing their investments, many states require that health club owners/operators file surety bonds before they can be legally licensed. Don’t worry if you don’t know what surety bonds are. We’ve developed this guide to health club bonding just for you!


State Specific Costs

Health club bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level. Select your state below for more information about health club bonds in your area.

  • California
  • Florida
  • Maryland
  • New Jersey
  • New York
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas

Pay a Low Rate for Your Health Club Bond

We are  works with numerous reputable insurance underwriters, which allows us to shop your bond to find the lowest rate available. Your exact premium will depend on a few factors, such as the bond amount required by the state. Applicants with a credit score of 650 or higher can expect to pay a premium that’s just 2-8% of the bond amount, which translates to a $1,000-$4,000 premium for $50,000 of coverage.

Bad Credit? Don’t Worry!

Through our exclusive bad credit bond program, We can approve 99% of applicants regardless of credit history. This means we can issue bonds to applicants who have been denied by other surety providers. We even offer premium financing that allows clients to split their premiums into smaller, more manageable payments..

Learn More About Health Club Bonds

Health club bonds bind three parties together to ensure industry standards are upheld.

  • The obligee is the state agency that requires the bond.
  • The principal is the health club owner/operator who purchases the bond.
  • The surety is the underwriter that provides the bond.

This bond protects clients in the event that the club goes out of business, in which case the bond amount can be used to refund membership fees.

Health club bond amounts vary by state and typically depend on the membership packages offered by individual clubs. For instance, health clubs in New York need:

  • $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 that last up to 36 months

Some states require that health clubs with more than one location post supplementary bond amounts.

Furthermore, health club bond requirements are not limited to health clubs that exclusively offer fitness training. Other types of prepaid membership health organizations may also be required to post a bond with their state attorney general, including:

  • general fitness clubs
  • racquetball/tennis clubs
  • gyms
  • weight loss centers
  • self-defense schools
  • personal athletic trainers who have their own facility
  • bodybuilding clubs

Apply for your surety bond

Get a FREE Health Club Bond Quote Today! Click here to begin