Martial arts insurance may be one of the biggest overlooked things for any aspiring martial arts business owner, especially when it comes to calculating business expenses . Due to the highly physical practice of martial arts, insurance is a key part of any successful martial arts business plan. While there are many risk factors that can really hinder the success of your school, making a thoughtful, well-informed choice for your insurance needs can help protect you in the future.
There are many different factors to consider that are unique to the martial arts industry. To help, we’re breaking down some points of consideration, to help keep your martial arts insurance plan working for you and your school.
What Type of Insurance Do You Need?
Different businesses have distinctive insurance needs and martial arts businesses are no exception. A Tai-Chi school won’t have the same insurance needs as an Olympic-style Taekwondo school and a school in one part of the country may need a different plan than one in another. Your starting point should be looking at the various claims your school can be held liable for. Because of the differences from state to state, please check with your local insurance companies, to see the options available to you.
Personal, Injury Liability Claims and Coverage
This category of coverage is one of the most important ones, due to the physicality of martial arts schools. Some of the coverage you’ll want to consider should include personal injury coverage, professional liability coverage, advertising injury coverage, and workers compensation insurance.
Personal injury coverage can be helpful for if there is a serious injury that occurs on-site. Professional liability insurance can protect owners and instructors from claims related to the instruction they do or do not provide. Advertising injury coverage is surprisingly necessary these days, as it protects the school from claims related to your use of personal information and/or trademarks in your marketing and social media content . Most states have mandatory laws on workers compensation coverage, protecting workers if they get injured on the job. Finally, general liability insurance also protects you from a number of claims, including lawsuits, and is highly recommended.
Property and Equipment Type Claims and Coverage
These coverage types protect you from claims ranging from premise liability, products and completed operations coverage, hired and non-owned auto coverage, property insurance, and coverage for loss of income. Premise liability can be an issue if someone—including a non-student—gets hurt on your property, such as a slip and fall in your parking lot. Products and completed operations covers any claims related to anything you sell in your pro-shop. Coverage for loss of income is an important one, as it will help pay the bills in the event that you cannot hold classes. Finally, property insurance is one every business needs. You never know what can happen and things can quickly become too expensive for a small martial arts school to pay for out of pocket.
Read the Fine Print
Finally, reading the fine print with insurance brokers is a must. You don’t want to think you’re covered, only to find out that a loophole is preventing you from receiving money from a claim. Having a lawyer look over contracts before signing them can be very helpful, avoiding headaches down the road. With that said, not every gym may be able to afford a lawyer and, in this case, taking your time to read each clause and doing your due diligence is necessary.
Many of these coverage types are for the peace of mind of the owner. While the owner may know how to best avoid some of these situations, it’s hard to predict what your staff members will do. For more information on the costs involved in martial arts insurance, take a look at our past blog post on the matter.
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