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Interesting. So all the insurance at gyms is run through the federation? Here the only insurance handled by USAG is the insurance for those at sanctioned USAG competitions(only competitive gymnasts have to register and part of their USAG reg fee goes to this insurance). Recreational gymnasts(and competitive gymnasts injured at practice) would go through a gyms private insurance company, reports would be filled out and go to them. Gyms pay for insurance based on the numbers they have in their program. Recreational and competitive gymnatics are essentionally two different systems. Not all gyms are even members of USAG, it is not required unless you want to enter USAG sanctioned competitions.
This is the same in Australia.
Gymnastics Australia carries full insurance for the clubs. Clubs must register ALL gymnasts whether they are competitive or recreational. In my state at least yiu pay the exact same fee to register a gymnast whether they are competitive or recreational.
In order for your gym to be covered by insurance the following must apply.
1. All gymnasts are registered
2. All coaches are current technical members with Gymnastics Australia
3. Coaches are only teaching those skills allowed by their coaching level
There are lots of other requirements too, like all classes must have pre written lesson plans, equipment needs to meet certain safety standards as does the venue in general and so on.