More Canadians are lacing up for sports and recreation than ever before – but too many organizers are overlooking the risks that come with it. As demand for local leagues and fitness events surges, insurers like Markel Canada are sounding the alarm on safety gaps, liability oversights, and underestimated exposures that could turn fun into fiasco.
“People used to be stuck at home with very few possibilities for sports or even just social gatherings,” said Manoah Toninato (pictured), underwriter for Markel Canada’s sports and recreation branch Markel Play. “Before the pandemic, people used to take for granted that they could do sports [to] meet friends. Now they don't.”
Toninato said this renewed appreciation for active living has translated into a surge of events and organized activities across the country – from block parties and community centre events to summer camps and an explosion of niche fitness trends. This cultural shift has also introduced a wave of lesser-known athletic activities that insurers are now grappling to understand.
“Sometimes we receive a request, and we have to look up the sport because we have no clue what it is,” he said.
With increased participation has come increased awareness of injury risks – and a rising demand for coverage. People, he said, “want to practice sports, they are more aware of the risk that is attached to each sports practice.”
That growing awareness, he noted, has prompted a broader response – not only from insurers but from the Canadian government and sports organizations.
In addition to campaigns, the legal framework around sports safety has also evolved. Toninato cited the Canadian Centre for Ethics in Sport, the 2019 Universal Code of Conduct to Prevent and Address Maltreatment in Sport, and the 2022 launch of the Sport Canada Athletes Advisory Committee as examples of a regulatory push that has changed how associations manage liability.
“All that awareness increased responsibility on each sports association,” he said. “They are now more careful and we saw an increase of the demand for insurance because of all this work that has been done,” he told Insurance Business.
Despite growing awareness around risk and regulation, Toninato said many event organizers still underestimate the basics – especially when it comes to emergency planning.
One of the most persistent blind spots, he said, is the assumption that because an event is recreational or “friendly,” nothing could possibly go wrong. That mindset, while well-intentioned, can leave organizers unprepared for real-world hazards.
In one recent example, Toninato reviewed a quote request for a fitness competition expected to draw around 300 participants. The event was to be held in a small gym not designed for such capacity. When asked about the emergency evacuation plan, the organizer simply responded: “Nothing would happen.”
Scenarios like that, he said, reflect a broader tendency to overlook practical safety measures – like evacuation procedures, fire exits, and clearly defined responsibilities among volunteers. Even when these risks are low, the lack of structured protocols can create serious vulnerabilities if things go sideways.
Toninato likened it to the pre-flight safety briefings on airplanes: “It’s boring… but it is important. That’s the basis of a safe event.”
In his view, those protocols should be a non-negotiable part of any sporting or recreational event. And while awareness is growing, a disconnect still exists between intention and execution. Too often, organizers rely on vague or informal plans, which fall apart under pressure.
As sports and community-based events proliferate, so too does the complexity of properly insuring them. Toninato emphasized that organizers – especially of amateur leagues and small tournaments – often overlook key aspects of coverage that can leave them exposed.
First and foremost, he said, it's essential to confirm that participant injuries are covered – not just property damage.
“There are some insurance companies that would sell [commercial general liability] but only for material damages, not for injury to participants, which is the biggest concern when it comes to sports.”
Clarifying who exactly is covered under the policy is equally critical. While policies typically protect the league and its representatives, Toninato said organizers need to ensure that participants themselves are protected if they injure someone else while taking part in a sanctioned activity.
For events that involve alcohol, he stressed the importance of host liquor liability coverage – designed to cover incidents arising from intoxicated guests.
Beyond liability, Toninato said property coverage is often overlooked by smaller organizations – even though it’s vital to their financial stability.
“Sports leagues don’t always have a lot of financial capacity,” he said. Equipment like nets or protective gear, even if old, can cost thousands to replace if damaged or stolen. Yet some leagues hesitate to insure them due to their age or perceived low value.
“Yes, they are old and they are not worth a lot, but if you have to replace them all at once, that can be a lot,” he said.
