How Facility Owners Can Navigate Another COVID Wave — Insurance and Liability Considerations

We’re three weeks into 2022, and the Omicron variant is pushing COVID case counts to record highs. Hospitalizations are climbing. Some cities are reinstating indoor mask mandates. Gym attendance has dropped 20–30% in many markets.

For fitness facility owners who’ve spent nearly two years navigating pandemic chaos, the playbook feels familiar. But the liability landscape has shifted, and your response needs to shift with it.

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What’s different this time

The early pandemic was defined by uncertainty. Nobody knew what COVID liability looked like because there was no precedent. Two years in, the picture is clearer — and in some ways, the risk is higher.

Courts have now had time to establish expectations. If a member claims they contracted COVID at your facility, the question won’t be whether you followed the government’s rules. It will be whether you acted reasonably given what was known at the time.

That standard is harder to meet in January 2022 than it was in March 2020. We know more. Courts expect you to act on that knowledge.

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Your COVID waiver needs a refresh

If you implemented a COVID-specific waiver in 2020, there’s a good chance it references emergency declarations, specific safety protocols, or government mandates that no longer apply.

Outdated waiver language doesn’t just fail to protect you — it can work against you. A plaintiff’s attorney will point to your own document and argue that you weren’t even following the protocols you asked members to sign off on.

Review your waiver for these issues.

Expired references. Remove language tied to specific emergency orders or government mandates that have ended. Replace with general assumption-of-risk language about communicable illness in indoor fitness environments.

Outdated protocols. If your waiver mentions temperature checks, capacity limits, or equipment spacing requirements you no longer enforce, update it or remove it.

Consistency. Whatever your current policies are — masks, distancing, sanitation — your waiver should match what you’re actually doing. The gap between policy and practice is where lawsuits live.

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What your insurance does and doesn’t cover

Three questions we hear constantly right now.

Does my general liability cover COVID claims? It depends on your policy, but GL may respond if a member alleges they contracted COVID due to your negligence — for example, failing to enforce your own posted safety protocols. The key word is negligence.

Does workers’ comp cover employees who get COVID at work? In many states, yes — particularly if the employee can demonstrate workplace exposure. Rules vary significantly by state, and several states have expanded presumption of compensability for certain workers.

Does my business interruption policy cover COVID closures? This has been heavily litigated since 2020, and the answer for most policies is no. Courts have overwhelmingly ruled that virus contamination does not constitute “physical damage” required to trigger BI coverage — unless your policy specifically includes pandemic or virus coverage.

If you’re unsure what your policy covers, don’t guess. Call us. A 10-minute conversation now is better than a surprise denial on a claim later.

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Five things to do this week

Enforce your own policies. If you post mask requirements or capacity guidelines, enforce them consistently. Inconsistent enforcement is a plaintiff attorney’s best friend.

Document everything. Cleaning schedules, ventilation upgrades, safety training, incident reports. If it isn’t documented, it didn’t happen — at least in the eyes of a court.

Update your waiver. Have an attorney review your COVID waiver language for 2022. Make sure it reflects current conditions, not 2020 conditions.

Don’t neglect non-COVID risks. Equipment maintenance, slip-and-fall prevention, staff training — the pandemic hasn’t made these go away. In fact, deferred maintenance during lean pandemic months may have made them worse.

Review your coverage with SFIC. Your business has changed significantly since 2020 — membership levels, revenue, staffing, services. Your insurance should reflect where you are today, not where you were two years ago.

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Looking ahead

The fitness industry has shown remarkable resilience. Membership numbers are recovering, and the demand for in-person fitness has never been stronger.

The facilities that will thrive in 2022 are the ones that balance smart risk management with a welcoming, safe environment for their members. The Omicron wave will pass. Your liability exposure is permanent.

Contact SFIC or call us at (800) 844-0536. We’ve been insuring the fitness industry for over 30 years, and we’re here to help you navigate whatever comes next.