In recent years, headlines have been filled with reports of child molestations, instructor negligence, and even murders involving martial arts schools. Each of these incidents carries potentially millions of dollars in liability.
Unfortunately, in many cases, the school owner wasn't even present when the incident occurred. Yet, without solid insurance coverage, they could lose everything—personally and professionally.
The type of insurance you'll need depends on the kind of school you run. If you have a children’s program with minimal contact, your requirements will differ significantly from those of an MMA school with a cage and lots of sparring.
Regardless of your focus, it’s critical that martial arts school owners protect themselves with appropriate and sufficient insurance.
Liability Claims
Liability claims can stem from a variety of incidents, from student injuries during training to allegations of sexual misconduct. Both minors and adult students alike can file these claims, putting your school at great financial risk.
Property Claims
Property claims range from fire and lightning damage to a vehicle crashing through your school’s front window. Each of these scenarios could result in substantial repair bills or lawsuits, which could destroy your business if you're not properly insured.
General Liability Insurance – A Must-Have!
Every martial arts school must have General Liability insurance, which includes Professional Liability coverage. This protects you from a wide range of claims, including lawsuits arising from injuries or abuse.
Premises liability covers incidents like slip-and-falls, while Professional Liability protects against claims related to your instruction.
There’s also coverage for products and operations, ensuring that any equipment you sell is covered, as well as Personal and Advertising Injury insurance, which safeguards against intellectual property claims.
Equally important is Sexual Abuse and Molestation insurance, protecting your school against losses related to both physical and verbal abuse allegations.
Additionally, Hired and Non-Owned Auto coverage is essential if your staff or contractors use personal vehicles for school business. It covers accidents that may occur during those activities.
Insurance Limits You Should Know
Today’s standard liability limits for martial arts schools range from $1,000,000 per occurrence with a $2,000,000 or $3,000,000 annual aggregate.
Higher limits can be obtained with an Umbrella or Excess Liability policy, which are especially important if your landlord requires specific limits or if your school holds significant assets.
Property Insurance: A Must for Every School
Whether you own or rent your space, Property Insurance is a must.
Not only does it cover essential equipment and contents, but it also covers tenant improvements like HVAC systems, mirrors, and signs.
Also, consider Business Income Insurance. If a covered incident forces you to close temporarily, this coverage will replace lost income during the restoration period. Many schools purchase 3-4 months of Business Income coverage to ensure financial security during such times.
Workers Compensation Insurance
For any school with regular employees, Workers' Compensation Insurance is required. It pays for medical bills and lost wages if an employee is injured on the job.
Not having this insurance could result in fines from the state, not to mention lawsuits from injured employees.
Individual Instructor Insurance
If you teach seminars or classes outside of your own school, you should carry your own Professional Liability insurance.
Independent contractors working at another school should have coverage that matches the liability limits of that facility.
Protect Your School – Take Action Now
It’s essential to review your insurance policies annually and never let your coverage lapse.
Work with a provider who understands the unique needs of martial arts schools and their operations.
Securing the right insurance coverage isn’t just smart business—it’s vital to your survival in the industry.