I offer towel service as a perk. A client got a nasty MRSA (Staph) infection on his face and traced it back to my gym’s towels. He claims we washed them in cold water to save money and didn’t sanitize them properly. He is suing for medical bills and “pain and suffering.”
Key Takeaways
- Bodily Injury includes Disease: Staph is a bodily injury. General Liability should cover this.
- “Communicable Disease” Exclusion: In the post-COVID era (2026), many policies added a blanket exclusion for all transmissible bacteria/viruses. If this exclusion exists, you have NO coverage for Staph.
- Negligence in Maintenance: Did you follow CDC laundry guidelines (160°F water)? If not, you were negligent.
- Outsourcing Defense: If you use a laundry service (Cintas/Aramark), you can pass the liability to them. If you do it in-house, it’s on you.
The “Why”: The Virus/Bacteria Exclusion
The Trap:
Check your policy for “Exclusion – Communicable Disease” or “Fungi or Bacteria.”
Insurers added these en masse in 2020/2021.
While intended for COVID, they often exclude MRSA, Ringworm, and Staph.
If you have this exclusion, offering towel service is a massive uninsured risk.
The Investigation: I Quoted 3 Major Carriers
1. Cincinnati Insurance
- My Analysis: They often write policies without the total bacteria exclusion for gyms, or with a high sub-limit. This is “Premium” coverage.
2. The Hartford
- My Analysis: Standard BOP likely excludes it. You have to ask for a “buy-back” of the coverage.
3. Outsourced Laundry
- My Analysis: The best insurance is a contract with a vendor. If Cintas washes the towels, their insurance pays the claim.
[IMAGE: Photo of a washing machine temperature setting at “Sanitize”]
Comparison Table: Hygiene Liability
| Carrier | Bacteria Coverage? | In-House Laundry Risk | Best For… |
| Cincinnati | Yes (Likely) | Covered | High-End Gyms |
| Standard BOP | NO (Excluded) | Uninsured | Budget Gyms |
| Vendor | N/A | Transferred | Everyone |
Step-by-Step Action Plan
- Check the Exclusion: Search for “Bacteria” in your policy.
- Temp Logs: If doing in-house laundry, log the water temperature daily.
- Switch to Vendor: It costs more, but it transfers the liability.
- Disinfectant: Use hospital-grade detergent. Keep receipts.
FAQ
Is this Professional Liability?
No, this is General Liability (Premises/Operations).
What about Ringworm from mats?
Same issue. Bacteria/Fungi exclusion applies.
Can I use bleach?
Yes, but then you risk “Property Damage” claims for ruined clothes.