What Kind of Martial Arts School Insurance Coverage Do I Need?

If you run a martial arts school, you're probably aware of the risks. Unfortunately, we see stories in the news about child molestation claims, guest instructor negligence, and even violent crimes tied to martial arts schools.

Even if you're not present when these incidents occur, as the school owner, you can face lawsuits with potentially millions of dollars at stake.

This is why having solid insurance coverage is crucial. Without it, you risk losing everything both personally and professionally.

The Type of Insurance You Need Depends on Your School

The type of insurance you’ll need depends on the nature of your school. A children-focused martial arts school with minimal contact will have different insurance needs than an MMA school with a cage and lots of sparring.

Understanding the types of claims you can face is the first step toward getting the right coverage. Claims typically fall into two categories: personal injury and property damage.

As a martial arts school owner, you must protect yourself with adequate insurance coverage.

Liability Claims: Protecting Your School

Liability claims are often tied to student injuries or accusations of sexual abuse. These claims can come from minors or adult students alike, and they can severely impact your business.

On the property side, claims can arise from incidents like fires, lightning strikes, or even a car crashing through your building’s front window.

These types of claims can lead to massive repair bills or lawsuits that could potentially destroy your school.

General Liability Insurance: The Must-Have Policy

Every martial arts school should carry General Liability Insurance. This policy needs to include Professional Liability Coverage to protect against claims and lawsuits that can stem from a range of situations. Here’s a breakdown of what you need to know:

  • Premises Liability covers incidents like slip-and-fall injuries. As a martial arts school owner, you're responsible for ensuring that students and guests are safe not just inside the dojo, but also as they move through parking lots and sidewalks to your entrance.

  • Professional Liability Coverage protects you and your staff from claims tied to the instruction you provide—or fail to provide.

  • Products and Completed Operations coverage ensures you're protected if a student has issues with products you sell.

  • Personal and Advertising Injury Coverage protects against claims involving trademarks or personal information, especially in media or marketing content.

  • Sexual Abuse and Molestation Coverage is critical in protecting your school from claims made by both minors and adults regarding abusive behavior.

  • Hired and Non-Owned Auto Coverage steps in if an employee uses their own or a rented vehicle during school operations.

Understanding Liability Insurance Limits

Typical liability insurance limits for martial arts schools are as follows: $1,000,000 per claim and either $2,000,000 or $3,000,000 annually. If you want higher protection, consider an umbrella or excess liability policy.

If you're leasing a space, your landlord will often require you to carry a certain level of liability insurance. Make sure to negotiate this and factor it into your overall protection strategy.

Your school's assets and the owner's personal assets should guide your choice of liability limits.

Don't Forget Property Insurance

Your school likely has equipment, mirrors, and other contents that need to be covered under a Commercial Property Insurance policy. If you're renting, tenant improvements like HVAC systems or signage should also be insured.

Loss of Income Coverage is essential for protecting your school if you need to shut down due to property damage. Most schools opt for 3 to 4 months of business income coverage to cover lost revenue during the rebuilding process.

Workers' Compensation Insurance for Martial Arts Schools

If you have regular staff, even part-time employees, you’ll need Workers' Compensation Insurance. It covers medical bills and lost wages if your employees get injured on the job.

Failing to carry this mandatory insurance can lead to fines and lawsuits. Make sure to calculate your annual payroll to determine your Workers’ Comp premiums.

Insurance for Individual Instructors

Independent martial arts or self-defense instructors should carry their own Professional Liability Insurance when teaching seminars or classes at other schools.

Your school should require proof of this coverage before allowing an independent contractor to teach at your facility.

Direct employees are typically covered under your General Liability Insurance, but contractors are usually not.

Stay Covered—What to Do Next

Review your school’s insurance policy each year. Never let it lapse. Make sure your insurance provider understands the unique risks and operations of martial arts schools.

This will ensure that you have the coverage you need to protect your business, your staff, and your students.