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

Insurance needs vary based on your school’s focus. For example, a children’s school with minimal physical contact requires different coverage compared to an MMA gym with high-contact activities.

Start by understanding the types of claims you could face:

Liability Claims:

  • Personal Liability: Claims can arise from injuries to students or accusations of sexual assault and abuse.
  • Property Liability: Claims might stem from incidents like fires or accidents involving vehicles crashing into your facility.

Essential Insurance Policies:

  1. General Liability Insurance (Must Have!):

    • Premises Liability Coverage: Protects against injuries occurring on your property, from slips and falls to more severe accidents during classes or events.
    • Professional Liability Coverage: Shields you from claims related to your instruction and training.
    • Products and Completed Operations Coverage: Covers claims related to items sold by your school.
    • Personal and Advertising Injury Coverage: Guards against claims from the use of trademarked or personal information.
    • Sexual Abuse and Molestation Coverage: Provides protection against claims of abuse, applicable to both minors and adults.
    • Hired and Non-Owned Auto Coverage: Covers incidents involving vehicles used for school operations.

  2. Standard Liability Insurance Limits:

    • Typical limits are $1,000,000 per occurrence with either $2,000,000 or $3,000,000 annual aggregate, or $2,000,000 per occurrence and $4,000,000 aggregate. Higher limits are available through Umbrella or Excess Liability policies.

    • Lease agreements often require specific liability limits, which should be factored into your coverage decisions.

  3. Property Insurance:

    • Commercial Property Insurance: Covers equipment, contents, and tenant improvements like HVAC, mirrors, and signage.
    • Loss of Income Coverage: Replaces lost income if your school is temporarily closed due to covered property damage. Typically, schools opt for three to four months of coverage.

  4. Workers Compensation Insurance:

    • Required for schools with full-time or part-time employees in most states. It covers medical bills and lost wages for employees injured on the job. Note that owners and officers are usually not required to pay premiums on their own payroll.

  5. Individual Instructor Insurance:

    • Independent martial arts and self-defense instructors should obtain Professional Liability insurance to cover their work in other schools or facilities. Ensure that the coverage matches the liability limits of the facility where they work.

What To Do Right Now:

  • Review Your Insurance Coverage Annually: Regularly assess your insurance needs and ensure your coverage is up to date.
  • Avoid Lapses: Maintain continuous insurance coverage to avoid potential gaps.
  • Work with a Specialized Insurance Provider: Choose an insurance provider knowledgeable about martial arts and your specific needs.

By securing the right insurance policies and understanding your coverage needs, you can protect your martial arts school from significant financial and reputational damage.