Mother, may I go to swim? Certainly not my dear, it's far too deep. But daddy is swimming. Yes dear, but he is insured.

Did you hear the one about the two women who sued a health club for chlorine damage caused to their bathing costumes while in the Jacuzzi? Or the one where a member backed up his car too close to the kerb in the club's car-park, stumbled while getting his kit out of the boot and claimed against the club for his sprained ankle?

Laugh ye may, but these days the joke may well be on the fitness club operators who pay too little attention to the need to tailor an insurance plan specifically to their business. The British public is becoming gradually more litigious, aping our American cousins' obsession with what has become known as the 'Claims Direct-effect', whilst at the same time taking to exercise and health-club membership in their droves. So, as the insurance industry itself begins to take more of a front-seat, it is clearly time for operators to take a long, hard look at just how, and at what level, they cover themselves against the very real threat of personal injury and professional negligence claims.

Aware of the growing demand for all-in-one insurance packages, many brokers and insurers now fit policies specifically to the needs of the health club industry. Independent adviser Frank Adebowale says "Most local insurance brokers have a general, working knowledge of business, but no experience of the requirements of health clubs." Specialist brokers such as John Ansell, Carroll & Partners and Marsh Leisure Group have access to a raft of insurance products which can be picked and mixed to tally with the exact requirements of a private club, gym or spa or local authority facility.

Industry brokers speak with one voice on the subject of personal and professional liability cover - it should, they all agree, be no less than £5m, with £10m being a more realistic figure. "We automatically cover all our clients for £10m on public liability" says John Hyland of Carroll & Partners, a Lloyd's broker and FIA member whose policies are underwritten by the giant Cornhill group. "Some policies, unlike ours, are vague when it comes to cover for treatment risks or wrongful advice given by instructors or freelance beauticians" he says, mentioning the company's "Gym Sure" policy, which is designed to include every aspect of health club cover including buildings and contents insurance, business interruption cover, loss of cash and employer's and public liability.

With Claims Direct marketing themselves on the basis that they have 60,000 claims "in their care" at any one time - and that's just one company of many now in the field - third party indemnity is as vital an aspect of a club's insurance as cover against fire or theft. It is a requisite that clubs understand the importance of making a record of each and every incident, no matter how minor it may seem at the time.

Fitness industry health and safety guru Keith Sach says "If you get your house in order and keep records, then you have no need to fear the 'no win, no fee'-type solicitors, who would rather back off than pursue a claim they might lose. There should be no threshold below which a club does not record incidents." Sach's sage advice includes getting hold of the HMSO reporting book (Health & Safety: Routine Checks and Records - ISBN 0117025240 - £4.50) to use as a basic guide.

Under guidelines recommended by the Woolf Report and brought into law in 1999, a club member has up to three years to initiate a claim, whatever its nature. The club then has three weeks to acknowledge receipt of the claim and three months to decide, in deliberation with its insurers, whether to accept liability and talk terms with the claimant or to deny it and begin defence procedures.

These 'three threes', as they are known, only serve to emphasise that the days of putting a letter from a claimant's solicitor to one side, in the hope that it will go away, are over - it is crucial that the letter is passed at once to the club's insurer. Furthermore, only clubs that have kept the fullest records will be in a position to defend a claim - documents that could be called into evidence include accident and RIDDOR reports, risk assessments for the area of the club where the incident took place, evidence of maintenance of equipment, staff training logs and, if applicable, records of the claimant's medical screening and fitness programme.

Many policies exclude advice given for a fee, but the importance of being covered for wrongful actions by employees, whether staff members or freelance, cannot be over-stressed. A consultant to the FIA on this aspect of insurance, Frank Adebowale believes that clubs should be protected for instances such as trainers omitting to tell members to warm up and warm down during a work-out, whether or not the instructor has their own public liability insurance. Craig Smith of John Ansell & Partners mentions the need to cover club staff for liability when they are off the premises, for example teaching aerobics classes in local venues as a membership promotion.

Ansell's most popular insurance package offers all-risks cover for contents, plus employer's liability. Club owners can complete a simple, two-page form for a quotation, which includes options to cover unfixed fitness equipment, business interruption and loss of liquor licence, as well as a members' personal accident insurance scheme, which can be sold on at a profit.

Other oft-overlooked areas include cover which indemnifies a club against claims if a member is injured by another member, or a guest of a member, while taking part in activities within the club and Mike Owen of Heath Lambert, the fourth-biggest insurance brokers in the UK, identifies the peace of mind brought by insurance that covers members' fees should they cancel their membership due to injury, illness or unemployment.

"Clubs should be sure to chose an insurance product with comprehensive cover" advises Marsh Leisure Group's Lindsay Richards, "and which include things that are often overlooked, such as damage to internal and external sports surfaces or to equipment used at outside venues on promotions, and theft of cups and trophies." Richards also talks of the importance of brand protection and will ensure that adverse publicity resulting from a claim is kept to a minimum.

Levels of cover required naturally vary from club to club and premium levels are driven by size, membership numbers and turnover. "There is no 'Which?'-type survey on how much cover a club needs" says Frank Adebowale, "it comes down to the normal dynamics of a free market." Craig Smith of Ansells will cover small gyms for all risks from £500 a year, whilst an average premium for a large, fully equipped health and fitness club would amount to between £1,700 and £2,000 annually.

Robert Cocks of Apex Consultants, who work closely with the Sunbed Association, expresses the need to inform brokers specifically if you require cover for sunbeds or other treatments, as it is often dealt with separately from other insurance - Cocks names an instance where a club member attempted to claim for first-degree burns caused by 8 minutes on a sunbed!

The views from major operators demonstrate, in the main, a refreshing awareness of insurance issues. "The increasing litigiousness of our society helps to focus our attention on the duty of care we have to our members" says Victoria Penrice, Company Secretary of Esporta, who insure through SBJ Stephenson. "Proper inductions, fitness checks and plenty of well-trained, helpful staff are important in minimising risk. We try to ensure that our risk assessment procedures are exemplary and our insurance cover is designed to pick up catastrophes rather than everyday incidents. This puts the onus on our units to take steps to prevent small claims, which we feel is a sensible approach."

Staff awareness of risk management procedures is essential and a vital link in claim avoidance. "Manufacturers' guidelines on equipment maintenance must be adhered to" says Keith Sach "and a high calibre of equipment training for members is essential." Something as simple as signs stating that equipment should not be used without instruction from a member of staff can be of immeasurable value in the event of a claim. In the case of hotel gyms, which are not always staffed, a 'phone should be prominently positioned and users made aware that they should call and speak to a staff member if unsure about how to use the equipment.

Employees should also be mindful of the need to minimise risk and to report - and record - immediately any potential hazard, such as loose tiling in a pool area, excess water in a changing-room or damaged equipment - particularly resistance machines, faults in which could prove fatal. "Risk awareness training must be built into a club's culture" says Frank Adebowale. With slips and falls being quoted by all brokers as the most usual sources of claims, staff must be constantly aware of the importance of second-guessing potential incidents.

With clubs required by law to ensure a safe environment for members, staff and visitors, there is no room for risk-taking when it comes to insurance. Investing in proper cover does members a service by lifting a weight from the shoulders of busy club owners and management, leaving them more time and effort to devote to running the kind of high-standard business that paying members have grown to expect.

Ian Freeman is a freelance journalist and communications consultant.

He is fully covered.

Frank Adebowale, Independent Insurance Solutions - 0118 987 5100

Keith Sach - 07831 608900

Carroll and Partners - 020 7645 0427

John Ansell & Partners - 020 7251 6821

Marsh Leisure Group - 01892 553179

Apex Insurance Consultants - 01905 797385

SBJ Stephenson - 01474 537777