Coverage / Policy
Does my CrossFit RRG meet the requirements of CFHQ?
YES, we provide all requirements needed in your license agreement. There are no additional coverages or policies required to operate an affiliate.
What are the policy limits and what does that mean?
| General Liability Coverage Part | ||
| Per Occurrence Liability Limit | $1,000,000 | per occurrence |
| Medical Expenses | $5,000 | per person |
| Personal and Advertising Injury Limit | $1,000,000 | |
| Products Completed Operations Aggregate | $1,000,000 | |
| Damage to Rented Premise Limit | $300,000 | |
| Annual Aggregate – General Liability | $2,000,000 | |
| Annual Aggregate All Coverage Parts | $2,000,000 | |
| Abuse and Molestation Occurrence/Aggregate Limit | $100,000 | |
| Professional Liability Coverage Part | ||
| Professional Liability (Claims Made Insurance) | $1,000,000 | each claim |
| $1,000,000 | annual aggregate |
Policy limits are the maximum amounts of money that the CrossFit RRG will pay on your behalf. This payment includes both legal defense costs and any damages. Unlike other insurers, the CrossFit RRG will spend all of the money necessary to fight claims and avoid making settlements on cases that will set a negative precedent for the CrossFit community. The limits outlined above sync with the requirements in your license agreement with CFHQ. CrossFit Kids requirements are also automatically built into the policy.
Can I train CrossFit outside of my box?
Yes, the policy has no restrictions regarding where you can train. Feel free to WOD in the park, by the beach, or in your garage.
Does my policy have age restrictions?
No, the CrossFit RRG does not restrict who you can train and what age they must be. Use your own discretion while deciding who is appropriate to train.
Are my independent contractor trainers covered by my affiliate policy? Is there additional cost to add trainers? Do I need to notify CrossFit RRG of new hires?
Feel free to hire as many trainers as you want. You don’t need to tell us and there is no additional charge. All owners, partners, employees, contractor trainers, and volunteers are automatically covered.
What about CrossFit Kids (CFK)? What do I need to do to add a CFK program?
The CrossFit RRG policy automatically builds in CFK requirements. A simple request to our underwriting team is all it takes. We will turn around the certificate you need within 48 hours.
I’ve heard that some insurance companies might not have the stomach to cover rhabdomyolysis. How does CrossFit RRG handle rhabdo claims?
CrossFit RRG defends our affiliates and trainers from accusations and wrongful acts regarding CrossFit programming, especially regarding rhabdo.
Are special events covered by my policy?
Almost all events are covered by your CrossFit RRG policy automatically and we will never charge additional premium for charitable events. However, if you conduct a large event, with a many more participants than your typical membership, we will cover the event for an additioanl charge. Be safe and ask our underwriting team when you are planning an event.
I need to name my landlord as ‘additional insured’ on my policy. Can I do that? What is the cost? If I need to add more ‘additional insureds’ is that possible?
Yes, you can add your landlord as additional insured. During your policy term, you may need to make changes or add more additional insureds. We will process your changes for free and there is no limit to the amount of additional insureds you can have on your policy.
If I only train at an affiliate and do no training on my own, do I need trainer insurance?
No, under those conditions, your affiliate’s policy will cover you in the classes you teach on their behalf, even if you are a contractor rather than an employee. The policies of other carriers do not always afford coverage to independent contractor trainers.
I'm taking my Level I class next month. Can I purchase the insurance now?
We appreciate your interest and enthusiasm. No, you must have a Level 1 certification to purchase a policy from CrossFit RRG.
Will the RRG be setting standards that trainers and affiliates must adhere to?
There will be no standards above and beyond those required by CFHQ.
What is the benefit of individual coverage if a trainer only trains at and within their already insured affiliate?
An affiliate owner's policy will cover trainers who are (a) working at the box and (b) in the scope of their duties. Thus, an affiliate owner does not need to purchase anything for each trainer ...HOWEVER... an individual trainer is free to buy ownership in the company and may have a policy separate from their affiliate owner's. This would cover them for training they do that is not associated with the affiliate they normally work for.
What is the coverage for and/or relationship of individual trainers under their insured affiliate? What is the benefit of individual coverage if a trainer only trains at and within their already insured affiliate?
An affiliate owner's policy will cover trainers who are (a) working at the box and (b) in the scope of their duties. Thus, an affiliate owner does not need to purchase anything for each trainer ... HOWEVER ... an individual trainer is free to buy ownership in the company and may have a policy separate from their affiliate owner's. This would cover them for training they do that is not associated with the affiliate they normally work for.
TIMELINE
How long does it take to receive my documents and satisfy the CFHQ requirements?
The entire process can take one week depending on how quickly the Affiliate responds to the quote. If needed we can expedite the process to meet your timeline.
How long does it take to complete the online application?
The online application can be completed within 10-20 minutes.
How long do I have to wait to receive a quote after my application is submitted?
The typical turnaround is 2 business days. If needed we can expedite the process to meet your timeline.
How long do I have to wait to receive my policy and certificates after I have made my payment?
The typical turnaround is 2 business days. If needed we can expedite the process to meet your timeline.
When must I complete the 2nd installment of my capital contribution ($650)?
Approximately one year after your 1st installment was taken. We will automatically include the second installment in your renewal policy.
If I have tight deadline to work with can you still help?
YES, we will do our best to help you quickly. To be safe please call or email us to discuss specific needs.
Capital Contribution / Stock
What is the capital contribution and why do I have to pay it?
The capital contribution is also referred to as our membership contribution. Essentially, it is a purchase of CrossFit RRG stock. Every policyholder within the company is also a stockholder. We set it up this way to give affiliates two distinct advantages. One, we offer a policy created by HQ and the affiliates that doesn’t have restrictions for affiliate owners. And two, we handle claims differently than a typical insurer. Claims within CrossFit RRG are defended and coordinated by the CFHQ legal team. Their sole purpose is defending affiliates and they don’t back down from a fight that should be fought.
Do I have to pay the whole capital contribution up front?
The $200 for trainers must be paid before a policy can be obtained.
For Affiliates, $350 can be paid at the beginning of the first policy year and the remaining $650 balance can be paid at the first year renewal. If you paid less than the full $1,000 during our capital drive, you can either bring the balance up to $350 or leave it at any figure above that until you have your first renewal at which point you will need to have the $1,000 fully paid.
Will my stock return dividends?
Yes, underwriting profits of the company will be distributed to the shareholders. The dividend amount will fluctuate based on loss history and maturity of the company. Affiliates owners who are on the board of directors will decide when, and how, a dividend will be paid.
What happens if the company sustains many maximum claims in a short period of time? Will CrossFit RRG go bankrupt?
It’s extremely unlikely that CrossFit RRG would ever be in such a negative financial position. We have purchased reinsurance (insurance for insurance companies) which transfers most of the risk to another insurer. CrossFit RRG can sustain a multitude of maximum hits before we should get nervous.
So, is this a mutual insurance company?
The CrossFit RRG is a Stock Insurance Company which is owned by CrossFit affiliates and CrossFit trainers. Each will receive a share(s) of stock for their capital contribution/investment.
Can anyone at any time "buy in" and become an equal owner? Also how does the ownership change or the "buy in" change for people who come along one year down the road?
Each member down the road would pay the same capital contribution as the members at this time. The only way to charge a different "buy-in" would be to have a valuation of the company completed and determine that the stock would be worth a different value. CrossFit RRG is not a "wall street" exchanged company, so the short answer is the buy-in will be the same $1,000 per affiliate and $200 for trainers. This is also mandated by the Federal Liability Risk Retention Act.
If an affiliate dis-associates from CrossFit, do they get to "sell" their part of the RRG?
There is a membership agreement that states how capital will be returned to each member. A member will not be able to sell their part of the RRG to another member or any other individual. There is no interest earned on this investment. The capital contribution is not a savings account. Only principal will be returned and if a member is due a dividend when they depart then that too will be paid.
What about tax issues? Will "shareholders" get annual statements and such?
The RRG is a non-SEC traded entity. Therefore your capital contribution is just that. It will not be tax deductible and you will not have any tax consequence until you receive dividends. When dividends are paid, you will be then taxed at the capital gains rate, which varies depending on your tax bracket. If you ever receive your capital contribution back, you will not be taxed on that transaction either.
Concerning the insurance fund, usually on these types of policies, the policyholders are also severally liable if the entity is sued. Are the policyholders liable?
Because this is a "stock" RRG and each policy issued by the RRG is fully insured, the policyholders do NOT have joint and several liability. In the unexpected event of an insolvency, RRG shareholders will lose their investment in the company but that is where the shareholder liability ends.
I am wondering if I and another certified CF coach were to invest in our individual RRG fee of $200, and later (soon) were to stand up our own affiliate, would that total $400 go towards the affiliate fee of $1000? I believe in what the RRG is providing, but don't have a lot of money to make two separate payments.
If two trainers merged to create an affiliate and that is a formal licensed affiliate, you would pay the difference or $600 in additional capital to satisfy the investment for an affiliate
Cost / Payment Plans
What does it cost to purchase a policy?
The CrossFit RRG requires that you purchase a share of stock in the company, this is not insurance. It enables you to do a few things. One, as an owner in the company you will receive dividend returns back to you. Two, you can purchase the insurance policy. And three, you have control over your own policy with the comfort that you won’t be non-renewed or canceled because you are doing CrossFit. The stock purchase is a one-time investment of $1,000. This can be split in to two installments, the first being $350 and the second installment ($650) would be collected when your policy renews the second year. The insurance policy is outside of the initial investment and the minimum premium is $1,350 per year for one year of coverage (for gyms earning under $150K). The RRG provides Commercial General Liability and Professional Liability Insurance. CrossFit RRG’s brokerage partner can provide property insurance with the RRG for $650 annually. These coverages make up the requirements of CFHQ and most lease agreements.
Will my premiums rise over time?
For affiliates, the minimum premium will continue to be $1,350 until you surpass $150,000 in gross revenue. Beyond that point, the premium will be an additional $8.70 per $1,000 of gross revenue earned. For trainers, the premium is a flat rate of $200 per year. With a good claims history and high community participation, these rates will go down over time. Conversely, if we begin to have high claims rates, the premiums may go up. The initial premium rate is based on assumptions of much higher claims rates than we have experienced so far, so lower premiums in the future are likely. In fact we have begun discounting the premiums for insureds who have been with the RRG at least two years and who have had no claims to date.
Can I pay the premiums over time?
Yes, there are payment plans available from a 3rd party company. The general structure is a 20% down payment of premium with 9 installments billed monthly.
Coverage Territory
Is the RRG available to non-US affiliates and trainers?
No, the CrossFit RRG is only available to affiliates and trainers in the USA and its territories.
What is a Risk Retention Group?
We are an affiliate owned insurance company. A Risk Retention Group (RRG) is a form of self-insurance. An RRG is formed and owned by its policyholders, and covers specific liabilities and actions, which traditional insurance companies just don't have the stomach for. RRGs are common practice for law enforcement officers, doctors practicing emergency medicine, contractors, medical product manufacturers, and a variety of other professionals in high-risk industries.