Members pay up front. The bond protects them if the doors close.
A bond that protects prepaid gym members
Many states require health clubs, gyms, and health spas to post a bond before selling memberships — especially prepaid or long-term contracts. The bond exists to protect members who pay in advance: if the club closes, fails to deliver, or violates the state's health-club law, members can recover against the bond.
What a health club bond guarantees
The bond protects prepaid members and the state — guaranteeing refunds or performance if the club closes or breaches its contracts, and compliance with health-club consumer-protection law. It is not insurance for the business; you reimburse the surety for any valid claim it pays to members.
How much a health club bond costs
The bond amount is set by the licensing authority. The premium you pay is a small percentage of that amount — typically around 1%–3% for applicants with reasonable credit, more for weaker credit — so a modest bond often costs a few hundred dollars a year. We market it to multiple surety companies to get you the best rate.
Requirements vary by state
Health-club bonding thresholds and amounts vary by state and can turn on the length or dollar value of the memberships you sell. We confirm your exact requirement before quoting.
Health Club Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
What does a health club bond cover?
It covers members' losses if a club fails to deliver prepaid services, closes without refunding, or violates the state's health-club law. You reimburse the surety for any claim paid.
Who needs a health club bond?
Gyms, fitness studios, and health spas that sell memberships in states requiring the bond — often triggered by selling prepaid or long-term contracts.
How much does a health club bond cost?
A premium that's a small percentage of the required bond amount, based on your credit.
How do I get a health club bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.