Property Types

Gym, Massage, Spa

Gyms, massage parlors, and spas may have on-site saunas, pools, jacuzzis, athletic courts, exercise rooms, shower facilities, running tracks, etc. These amenities can carry various pollution risks and create potential environmental liability for the facility owner/operator. Bacteria can grow in water systems and features present at these facilities. Humidity and water intrusion or leaks can lead to mold growth. Chemicals used for maintenance, cleaning, or disinfection can spill or leak or expose people to harmful fumes generated from their use. Lack of adequate disinfection or cleaning could result in facility-borne infections or illnesses. Older facilities may also contain hazardous building materials, such as asbestos or lead, that can be inadvertently disturbed.

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Environmental Exposures May Include:

Legionella
Overtreatment & Pathogen Risks
Mold Growth
Asbestos
Pool Chemicals
"Sick Building Syndrome"
Mercury in Polyurethane Flooring
Waste Management
Bacteria
Carbon Monoxide

Legionella

Legionella is a bacterium that can accumulate and thrive in warm, stagnant, pooled, or infrequently drained water found in air conditioning systems, water heating and cooling systems, plumbing, and water features. Poorly maintained systems and inadequate corrosion control or sanitization can result in Legionella growth and dispersal through mist and airborne droplets. People exposed to legionella can suffer Legionnaires’ Disease, a severe pneumonia-like illness, and Pontiac Fever, a less serious respiratory illness.

Overtreatment & Pathogen Risks

Chemical over-treatment of pool or jacuzzi water can cause skin and mucous membrane burns, while under-treatment can cause rising levels of bacteria and pathogens, leading to bodily injury claims.

Mold Growth

Mold growth can result from water and wastewater releases into building materials and subsurfaces due to leaks, overflows, poorly installed building materials, and blocked drains or pipes. Mold may also develop in water systems, such as refrigeration or HVAC, and indoor pools, showers, and water features due to improper maintenance, dehumidification, or ventilation. Mold growth can result in cleanup liability and pose health hazards to third parties.

Asbestos

Older buildings may contain asbestos, lead, and PCBs. Asbestos-containing material (ACM) can be found in ceiling and floor tiles, wiring insulation, and structural steel fireproofing. PCBs can be found in areas such as window caulk and light ballasts, and lead could be present in paint or pipes. Claims may result from accidental disturbance or alleged exposure during renovation, construction, or interior remodeling.

Pool Chemicals

Pool chemicals, disinfectants, cleaning solutions, insecticides, and building maintenance chemicals may be stored and used on-site. Spills, leaks, or improper mixing of incompatible materials can result in environmental cleanup and third-party liability.

"Sick Building Syndrome"

“Sick Building Syndrome” can occur when occupants suffer health problems while in a building. Exposures can include lead, mold, and bacteria; chemicals stored on-site or found in building materials; combustion products such as carbon monoxide; or volatile organic compounds, which can be emitted from various sources, including routine cleaning, equipment operation, and building maintenance.

Mercury in Polyurethane Flooring

From the 1960s through the early 2000s, mercury in the form of phenyl mercuric acetate was used as a catalyst in rubberized polyurethane flooring applications, including school gyms, athletic facilities, running tracks, etc. Polyurethane floors are rubber-like and water-resistant. Flooring containing more than 1,000 parts per million of phenyl mercuric acetate has the most likely risk of releasing mercury vapors at levels of concern to people. The concentrations of vapors released increase with temperature, lack of ventilation, or damage or deterioration of the flooring. Items in contact with the floor, the ventilation system, and other items in a room with mercury-containing flooring may also become contaminated with mercury vapors and dust.

Waste Management

Collected wastes, including fluorescent light fixture ballasts, fluorescent light tubes and bulbs, paints, chemicals, insecticides, grease waste, and construction debris containing asbestos, lead, or PCBs, may be hazardous or require special disposal procedures. Improperly segregated and disposed of wastes can result in regulatory fines for the generator and lead to cleanup and environmental tort liability.

Bacteria

Massage parlors, spas, and gyms can be breeding grounds for dangerous bacteria if operators fail to adequately disinfect and clean massage chairs, mats, lockers, showers, and other commonly used areas. Patrons could sue the facility for bodily injury, and the facility may incur remediation and decontamination costs, as well as business interruption, as a result of an infection.

Carbon Monoxide

Carbon monoxide is a poisonous, odorless, colorless, and tasteless gas that often goes undetected, and it can cause asphyxiation if released in an enclosed space. Carbon monoxide fumes can be generated from defective or improperly maintained equipment, such as heating systems, water heaters, pool heaters, etc. Gyms, massage parlors, and spas may have equipment that generates carbon monoxide fumes.

Environmental Pollution Liability Can Provide Coverage For

On-site cleanup of new and pre-existing pollution conditions

Off-site cleanup of new and pre-existing pollution conditions

Third-party claims for bodily injury and property damage

Third-party claims for cleanup

Both sudden and gradual pollution conditions

Aboveground and underground storage tanks

Non-owned disposal sites

Natural resource damage

Mold, bacteria, viruses, legionella, and more

Emergency response costs

First and third-party transportation pollution liability

Loading and unloading

Defense of third-party claims

Illicit abandonment

Crisis management

Civil fines and penalties, where allowed by state law

Business interruption

Claims Scenarios & Examples

While swimming at a local gym, a woman was exposed to hazardous chlorine gas. The woman was in the pool while the pool contractor was doing maintenance. The pool pump failed, releasing chemicals into the area. The woman experienced health issues, including reactive airway dysfunction syndrome, shortness of breath, wheezing, coughing, burning in her throat, difficulty speaking and swallowing, and difficulty going about her normal day-to-day life. It was also discovered that this wasn’t the first time the pool had been evacuated for a chemical release. The woman sued the gym owner and the contractor and was awarded over $91,000 for pain, suffering, disability, and loss of enjoyment of life.
Several patrons came down with a rash after using the hot tub at a spa facility. An investigation found that the hot tub was not adequately treated and had high bacteria levels. The group of patrons filed a lawsuit against the spa.
Hydrochloric acid and chlorine inadvertently got mixed in the same container, causing a toxic vapor cloud that sickened spa patrons and employees. More than a dozen people were taken to hospitals with respiratory systems and skin irritation, and the spa was evacuated.
A pipe leak behind the wall in a gym went unnoticed for an extended period. When the leak was finally addressed, and sheetrock was removed to access the leaking pipe, a large area of black mold was discovered. The gym had to hire an abatement company to remediate the mold, and while the work was performed, the gym had to be closed.
A Legionnaires’ disease outbreak occurred at a gym chain, with two locations reporting cases. The State Health Department investigated and found elevated levels of legionella bacteria in the showers and spas at both locations. The gym chain was sued for bodily injury, was fined by the State, and incurred remediation costs.
Several people in a massage parlor started feeling sick and dizzy and were taken to the hospital. An investigation discovered that a gas-fired water heater in the massage parlor leaked carbon monoxide gas into the air supply. The massage parlor was sued for bodily injury, pain, and suffering by the individuals taken to the hospital.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are at fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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