What Types of Insurance Does a Martial Arts Business Need?

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Martial Arts Studio Insurance Quotes

Costs for business insurance can vary greatly, and getting insurance quotes from multiple companies is recommended in order to get the best pricing.

Embroker, Hiscox, and CoverWallet all offer easy business insurance quotes at affordable prices.

Quick Reference

A martial arts school reaches a broad range of clients. Classes can be modified for minors or adults, group classes, self-defense classes, and one-on-one instruction. Martial arts classes are meant to strengthen the body and the mind and the quality of an individual’s character.

Due to the physical nature of the classes, a martial arts business is particularly exposed to liability claims. Therefore, a robust business insurance package is essential to protect your martial arts business.

Related: Guide to starting a martial arts studio

What Are Some Risks for a Martial Arts Business?

Some of the risks that a martial arts business is exposed to include:

  • Client injuries
  • Employee injuries
  • Fire damage
  • Extended closure

Although this list is a brief example of accidents that could occur, it does reveal the necessity of good insurance. Accidents do happen, and a valuable way to plan for one is to insure your business against accidents.

Client Injuries

One of the leading risks for a martial arts school is client injury. Students and spectators can be injured onsite by slips, trips, and falls. Additionally, as martial arts is a contact sport, the business is exposed to sports-related injury claims.

For example, a student might be injured during classes, demonstrations, sparring, tournaments, or training. Since injuries from sports participation are a risk, proper training and attentive coaching are significant to reduce student injuries. Attentiveness is critical to stop students from trying maneuvers beyond their skill level or sparring with an ill-matched partner.

Martial arts businesses that host tournaments will see an increased risk of liability exposures as many students, competitors, and spectators are onsite for events. Good maintenance and cleaning, such as removing cords and equipment from walkways, helps prevent injuries. Beyond injury claims, cleaning is also essential to reduce bacterial infections from dirty mats.

Claims of mental anguish and sexual abuse, harassment, or molestation are serious claims. The business should take care to protect its students and ensure instructors are well trained and vetted before employment.

Employee Injuries

Like client injuries, employees, or instructors, are at risk of injuries from slips, trips, and falls. And again, due to the nature of the sport, personal injuries like bruises, muscle strains, concussions, and broken bones are a hazard to the business’s instructors.

Moreover, instructors who teach weapons classes risk injury while coaching or handling the weapons. In addition, junior instructors (also known as student instructors) may have an increased risk of injuries because of their reduced experience level. As such, training and supervision are vital to keeping student instructors safe from injury; however, if an incident occurs, insurance is a great way to protect the business and its employees.

Fire Damage

Fire is a threat to the business’s building and property. The gym’s open floor plan, a typical layout for martial arts schools, can mean that fire spreads quickly through the building. Common sources of fire include faulty wiring, malfunctioning electrical equipment, and smoking.

Extended Closure

Should the business’s building sustain considerable damage, the business may be forced to close during repairs or rebuilding. During this time, the business will need to find a temporary location to resume its normal operations. However, furnishing a temporary place with equipment and supplies takes time, meaning that the business could be non-operational and, therefore, unable to collect income for some time.

Costs for business insurance can vary greatly, and getting insurance quotes from multiple companies is recommended in order to get the best pricing.

Embroker, Hiscox, and CoverWallet all offer easy business insurance quotes at affordable prices.

What Types of Insurance Should a Martial Arts Business Consider?

Insurance is essential to protect a business from accidents, which are costly and time-consuming. However, with decent insurance coverage, the business protects its reserve resources from being spent on accidents.

A martial arts business should consider the following types of coverage:

  • General liability – premises and operations
  • Workers’ compensation
  • Property damage
  • Business interruption

General Liability Insurance – Premises and Operations

Insurance coverage for general liability protects the business from bodily injury and property damage claims. For instance, when a student is injured in a competition because of the martial arts school’s lack of referee attention during the match, the student could bring a lawsuit against the business. Therefore, general liability insurance is an essential policy in your business portfolio to protect against negligence lawsuits.

Liability insurance coverage pays for expenses such as:

  • Medical expenses
  • Property damage repairs
  • Legal defense costs
  • Settlements

Without insurance to cover these expenses, the business would pay these costs from its reserves. Unfortunately, accidents happen, so liability coverage is essential to protect the business from financial hardships.

Workers’ Compensation Insurance

Insurance coverage for employee injuries is important, not only to cover the resulting injury expenses but the policy also protects the business from potential lawsuits. For example, a workers’ compensation policy covers an employee injured while instructing or performing other work duties.

This policy provides the following benefits:

  • Medical payments
  • Ongoing and rehabilitation care
  • Lost wage replacement
  • Funeral cost coverage
  • Disability costs

Comprehensive training and education help reduce injuries—especially for student instructors. However, if the instructor or employee is injured while working, a workers’ compensation policy is an excellent option to cover the claims.

Property Damage Insurance

Commercial property insurance is usually provided in the same policy as general liability and covers damage to business-owned buildings and property. This policy covers damages resulting from fire, wind, hail, theft, vandalism, and water from leaking pipes.

Property damage coverage is especially significant for businesses with an owned space and a large quantity of equipment (such as mats, weights, and training equipment). However, a martial arts school that doesn’t own, but rents location space, will still benefit from a property damage policy as this insurance offers protection for the business-owned equipment and supplies.

Business Interruption

Coverage for business interruption is generally provided as an add-on to a business owner’s policy and is not offered as a stand-alone policy. Business interruption is an excellent coverage option to protect the business from financial hardships resulting from an extended closure following a loss.

Business interruption provides coverage for expenses including:

  • Temporary relocation
  • Payments on existing bills and loans
  • Employee wages
  • Lost business income
  • Normal business expenses

Business interruption coverage typically covers the business for a period of 30 days, but with some policies, coverage can be lengthened up to a year.

How Much Does Martial Arts Business Insurance Cost?

Insurance costs vary depending on how much coverage the martial arts business requires. For instance, a martial arts school operating from a leased space and is a sole operation will require less coverage than a martial arts business with a large, owned building, multiple employees, and the ability to host tournaments.

Some variables that influence the cost of insurance include:

  • The size and condition of the building and business-owned property
  • The number of employees on the payroll
  • Training, ongoing education, and background checks on employees and instructors
  • The number of students enrolled in classes
  • Fire suppression and safety measures in place
  • Current and past claims or lawsuits

In the end, to determine the cost of insurance for your business, you will need to call an insurance company for a martial arts insurance coverage quote. Generally, it is recommended to call multiple companies to compare your quotes. Doing so verifies that the business owner’s policy you choose will best cover your business assets with adequate coverage limits.

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