9 Insurance Risks Gyms and Fitness Centres in Canada Face

1. Third-Party Bodily Injuries

Enthusiastic gym-goers are running and spinning, lifting and pumping, and they risk getting hurt if they lose their footing and slip or fall. 

Beyond sprains and broken bones, clients improperly using your facility’s equipment and injuring themselves can cost your gym an arm and a leg. Treadmills are consistently among the leading causes of gym injuries. 

What insurance covers this?

Commercial general liability (CGL) insurance can help shield you from costs associated with third-party bodily injuries or property damage claims and lawsuits from clients and visitors to your fitness centre.

How can you avoid this?

• Institute proper training and documentation for all equipment users, trainers, and clients. 
• Keep all equipment in top shape and leave adequate space between exercise machines. 
• Monitor how your clients use your equipment and prevent them from suffering an injury by advising them to use it safely if you see them misusing any equipment.
• Communicate clearly and continually reinforce your safety rules to clients, ensuring staff enforce the safeguards.
• Post all rules and safety signage in highly visible areas throughout the facility.
• Keep your fitness centre uncluttered and clean, and ensure there are no trip hazards.
• Investigate, document, and take action to correct any situation if one of your clients gets injured.
• Require your guests to sign a customer liability waiver when they sign up. Although you can still be held accountable if a client does get injured, a waiver is a recommended precaution that can limit your exposure to accident and injury claims. 

2. Personal Training and Instruction Errors

Do you have employees who are personal trainers or permit independent fitness professionals to serve their clients at your facility? Be aware you can be held liable for damage or loss caused by advice given to one of your clients in your gym. 

For example, if a personal trainer encourages a client to over-exert themselves, causing them physical or emotional harm, you could be named in a third-party bodily injury lawsuit.

What insurance covers this?

Professional liability insurance (also called errors and omissions or E&O insurance) covers claims alleging negligence, misconduct, or failure to deliver services as promised – including advice or instruction given by trainers working at your facility. Independent personal trainers and fitness instructors need their own professional liability coverage through a personal trainer insurance or fitness instructor insurance policy. 

How can you avoid this?

• Only hire qualified staff and personal trainers with the appropriate experience, licence, or certification.
• If your gym provides fitness classes and personal training sessions, confirm your policy’s professional liability coverage extends to your employees. 
• If you allow independent fitness instructors to work at your facility, ask to see their certificates of insurance to ensure they carry professional liability insurance.

3. Theft and Vandalism

There is a risk of theft or vandalism where supplies, merchandise, equipment, and electronics are present. 

Your clients usually show up at the gym wearing and carrying their belongings to stash in the locker rooms. Made to be private and discreet, these are also the conditions for damage and theft.

If a client’s or employee’s property goes missing on your premises, you may face a claim – even if your signage says otherwise. 

What insurance covers this?

Business contents insurance is designed to cover damage or loss to your own contents for various issues, such as theft, vandalism, fire, flood, or damage because of extreme weather. Claims involving a customer’s stolen or damaged belongings typically fall under your commercial general liability coverage. Consider adding commercial crime insurance to your policy if you’re concerned about employee-related theft, fraud, or forgery.

How can you avoid this?

• Install surveillance cameras at entrances, exits, and common areas. 
• Offer lockable storage in the changerooms for clients and staff.
• “Items left at user’s own risk” signage can forewarn your clients to be vigilant with their property.

4. Harassment or Inappropriate-Conduct Allegations

The trainer-client relationship can be very close, and when that occurs, the potential risk of harassment, sexual or otherwise, is possible. 

Any negligent act by a trainer hired at your gym or fitness centre can result in claims against you or your business. You could be financially liable for your employees’ actions or inactions through vicarious liability.

What insurance covers this?

Employment practices liability insurance may respond to allegations of harassment, discrimination, or unwelcome sexual advances – whether the complaint comes from a client or from one of your own employees about another trainer, a manager, or you. Sexual abuse, misconduct, or harassment liability insurance can extend coverage for allegations of improper conduct by staff or contractors at your facility. 

How can you avoid this?

• Ensure you have 24/7 monitored surveillance cameras onsite.
• Develop and enforce gym rules and policies that prohibit harassment. Make it easy for your clients to anonymously report unacceptable behaviour by employees or personal trainers to you. Take immediate action if you receive a complaint.
• If two or more of your customers get into a violent disagreement, do not hesitate to call the police and report it. Whether or not charges are laid against anyone, get a copy of the police report.

5. Cybersecurity and Privacy Incidents

Gyms and fitness centres are regular targets for cybercriminals, and for good reason. 

Storing your customers’ personal and financial information – birthdates, home and email addresses, and credit card information – is common. If this data is not sufficiently protected, your business could be liable for the damage caused by a data breach or cyberattack. 

It is your responsibility to physically and digitally protect your clients’ data. Shoring up your facility’s cybersecurity defences should not be an afterthought.

What insurance covers this?

Cyber liability insurance covers damages related to cyber incidents and cybercrime. It provides funds for software recovery and restoration costs, legal defence fees, crisis management services, and credit monitoring expenses.

How can you avoid this?

• Institute a strong password policy to protect all software-enabled systems and launch automatic inactivity timeout settings to close sessions.
• Encrypt your data and back it up daily.
• Keep anti-virus and anti-malware protection up-to-date.
• Physically secure all records access points behind locked and monitored doors.
• Shred any hard copies of sensitive documents on disposal.
• Train employees on these procedures and underscore the significance of cybersecurity and the implications of non-adherence.
• Regularly audit your procedures via a third-party cybersecurity firm and improve as needed.

6. Property Damage Caused by Severe Weather

Natural disasters and extreme weather events that damage a gym or fitness centre typically strike with little warning.

What insurance covers this?

Commercial property insurance is essential to cover damages or losses to your gym or fitness centre caused by fires, water, natural disasters, and extreme weather.

How can you avoid this?

• You can’t avoid disasters or emergencies, but you can be prepared. A business continuity plan (prepared in advance) will outline the steps to take if necessary.
• Have a fire safety and evacuation plan documented and posted. Ensure your employees are familiar with it.
• Install a monitored fire, smoke, and water damage alarm system.
• Prepare a plan for dealing with power outages. 

Business property owners can proactively safeguard their buildings against increasingly severe weather. Our complimentary guide, “How to Protect Your Business Property in the Era of Climate Change“, provides loss prevention strategies to help minimize property damage.

7. Business Interruptions

Incidents beyond a business owner’s control – fire, flood, or damage caused by extreme weather – may force a gym or fitness centre to close temporarily for repairs, resulting in lost revenue.

What insurance covers this?

Business interruption insurance may be included in a commercial property policy or it can be added to it – you must have commercial property insurance to get business interruption coverage.

It covers a business owner’s lost income, operating costs (rent, utility bills), employee payroll, and taxes and loan payments following an insurable loss while your facility is closed for repairs. 

How can you avoid this?

• You can’t prevent every closure, but you can shorten it. Keep an updated list of contractors and restoration vendors you can call the same day.
• Know your policy’s indemnity period and waiting period before you need them.
• Have a plan to keep members engaged during a closure – virtual classes, a temporary partner location, paused billing – so you don’t lose the membership base on top of the revenue.

8. Non-Compliance With Health and Safety Regulations 

Gyms and fitness centres must comply with various regulations, including municipal building codes, zoning laws, and health and safety regulations. Failing to comply with these laws and regulations can lead to expensive fines, closures, or lawsuits.

What insurance covers this?

Legal expense insurance – sometimes called regulatory defence coverage – may help cover a gym owner’s legal defence expenses during regulatory investigations or prosecution. Note that fines and penalties themselves are generally not insurable. 

How can you avoid this?

• Get the required municipal permits and ensure all the necessary building, signage, and renovation permits are obtained before opening or modifying the property.
• Engage a lawyer familiar with local and industry-specific regulations to review your setup and operations.
• Ensure the business is registered and all licenses are up to date.
• Implement safety procedures for staff and clients, including proper training for equipment use.
• Maintain strict cleaning protocols for equipment, locker rooms, and restrooms.
• Install fire alarms, extinguishers, and first-aid kits throughout the facility and ensure employees are trained in emergency response procedures.

9.  Equipment Malfunctions

Not only can faulty or poorly maintained gym equipment cause injuries to your clients, but if treadmills and other weight-training machines don’t work correctly, gym-goers may flex their muscles elsewhere.

And if the equipment that keeps the doors open suddenly quits – the HVAC system, washing machines, refrigerators – your gym’s operations grind to a halt. 

What insurance covers this?

Equipment breakdown insurance – also known as boiler and machinery coverage – may cover repairing or replacing your gym’s equipment if it ceases to operate due to mechanical or electrical malfunctions.

It covers a broad range of equipment, including the HVAC system, furnace, water tank heater, appliances, office equipment and electronics (computers).

How can you avoid this?

• Conduct regular inspections and maintenance on all gym equipment.
• Have essential building systems inspected and maintained by a certified professional on a documented schedule.
• Keep maintenance logs. They help you spot patterns before something fails, and they’re valuable evidence if an injury claim ever alleges you neglected the equipment.

Frequently Asked Questions About Gym and Fitness Centre Insurance in Canada

What insurance do gyms need in Canada? 

Most gyms and fitness centres need commercial general liability insurance, commercial property insurance, professional liability insurance, and cyber liability insurance at minimum. Depending on your operations, you may also need employment practices liability, equipment breakdown, business interruption, and commercial crime coverage. 

Does a liability waiver protect my gym from injury lawsuits? 

Not entirely. A signed waiver is a useful precaution and can strengthen your defence, but Canadian courts have set waivers aside in cases involving negligence or unclear wording. You still need commercial general liability insurance. 

Am I liable if a personal trainer at my gym injures a client? 

Possibly. Through vicarious liability, you can be held responsible for the actions of trainers you employ. If independent trainers work at your facility, ask for a certificate of insurance confirming they carry their own professional liability coverage. 

Does gym insurance cover stolen member belongings?

Your commercial general liability coverage may respond to a claim from a member whose property was stolen or damaged at your facility. Business contents insurance covers your own equipment and inventory, not your customers’ possessions.

How much does gym insurance cost in Canada? 

Annual premiums start around $330 for an annual commercial general liability and professional liability insurance with a combined limit of $2 million.

The following factors are typically taken into consideration by insurers when determining the cost of your premium:

• The location and size of your gym or fitness centre
• The value of your equipment and contents
• Years of experience
• Annual and projected gross revenue
• Number of employees
• Insurance claims history

How Do You Get Gym and Fitness Centre Insurance in Canada? 

Running a successful gym or fitness centre means providing clients a safe, clean, and rewarding experience. You can’t do that without proactively addressing your small business’s liability risks with a customized gym liability insurance policy. 

Fill out our online application for a free quote in less than five minutes.

Our knowledgeable team of insurance experts shops our partner network of over 50 insurers to get the coverage your gym needs, tailors it to your requirements and budget, and answers your questions along the way. 

Don’t let the strain of getting the right insurance coverage bend you out of shape. 

– Updated August 14, 2026.

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