“Am I Covered for This?” Walk Your Insurance Agent Through the Scenarios
Most school owners buy insurance once, file the policy in a drawer and never read it again. Then something happens — a parent slips on the ice outside the front door, a teenager tears a knee in sparring, a complaint arrives about a staff member — and the owner finds out what the policy actually covers at the worst possible moment.
The fix costs nothing but an hour. Once a year, sit down with your agent and walk through scenarios. Not “Am I covered?” in general, but “Am I covered for this?” — one situation at a time.
This column is about how to have that conversation. It is not insurance or legal advice. Your agent, your policy wording and your state’s law decide what is covered.
Why Scenarios Work Better Than Reading the Policy
A policy is written in exclusions and definitions. It is very hard to read one cold and know what happens when a specific thing goes wrong. A scenario forces a yes or a no. And when the answer is “no” or “it depends,” you find out now, while you can still add cover, rather than after a claim is denied.
Your agent is supposed to review your policy with you every year anyway and look for changes you need. Whether that actually happens is a different matter. Book it yourself.
The Scenarios to Put in Front of Your Agent
Take this list to the meeting and ask each one out loud. Write down the answer next to it.
On your property
- A parent slips on the sidewalk or in the parking lot outside the school. Am I covered, or is that the landlord’s policy? What does my lease say?
- A spectator in the lobby is hurt by a student or by equipment. Am I covered?
- Hail, a burst pipe or a fire closes the school for three weeks. Is the damage covered? Is my lost tuition covered while I am closed?
On the mat
- A student is injured in class or in sparring. What does my policy pay, and what is excluded?
- An instructor is accused of teaching a technique negligently. Is professional liability included, or is it a separate policy?
- An assistant instructor who is not on payroll — a senior student helping in class — is involved in an injury. Are they covered?
Off the premises
- My instructors teach at an elementary school, a summer camp or a community event. Does my policy follow them there?
- We travel to a tournament or march in a parade. Are we covered?
Staff and conduct
- A staff member is accused of abuse or misconduct with a child. Does my policy respond at all? Is there an abuse and molestation endorsement, and what is its limit?
- A staff member is hurt at work. Do I have workers’ compensation, and is it required in my state?
How the policy pays
- What are my per-occurrence and aggregate limits?
- Are defense costs paid on top of the limit, or do they use it up?
- Are there any sublimits that are much lower than the headline number?
That last group matters more than most owners realize. A limit that sounds large can be much smaller once legal fees come out of it. This journal has reported on a verdict in which a $56 million judgment met a $1 million policy. Read it before your meeting.
The Abuse and Molestation Endorsement
If you teach children, ask about this specifically. On many policies, cover for abuse and molestation claims is an add-on rather than standard, and it is usually a modest extra cost. Some martial arts organizations require member schools to carry it.
You are not buying it because you worry about yourself. You are buying it because you cannot personally vouch for every person who will ever work in your school, and one allegation against one staff member can put an entire school out of business. Owners who did nothing wrong themselves have closed their doors over what someone they employed was accused of.
Insurance is the last line, not the first. The first line is who you hire and how you supervise them. Background-check everyone who teaches, including family and the students who have been with you fifteen years — not because you suspect them, but so you can tell every parent, truthfully, that every instructor in your school has been checked. That sentence belongs in your parent materials. New laws are also moving in this direction; see this journal’s reporting on New York’s background-check bill and the safeguarding gap, and have a plan for what to do in the first 24 hours if an instructor is accused.
Do Not Stop at the Waiver
A signed waiver is not a substitute for insurance. What a waiver can and cannot do depends on your state, and this journal has covered it in detail in what a martial arts waiver does, and what it cannot do. Treat the waiver as one layer, the policy as another and your safety practices as the one that matters most.
Shop It, Too
When you have your list of answers, get at least one comparison quote. Providers that specialize in martial arts and fitness know the scenarios above and usually price accordingly. The journal’s martial arts school insurance directory lists who publishes prices and what their programs cover.
Questions School Owners Ask
What insurance does a martial arts school need?
At minimum, most schools carry general liability and professional liability, and many add property, business interruption, workers’ compensation where required, and an abuse and molestation endorsement if they teach children. What you need depends on your state, your lease and your programs — confirm with a licensed agent.
Does martial arts school insurance cover off-site classes?
Sometimes. Some policies cover instruction wherever it happens; others cover only the listed premises. If you teach at schools, camps or events, ask your agent directly and get the answer in writing.
How often should a martial arts school review its insurance?
Once a year at minimum, and any time you add a program, move locations, hire staff or start teaching off-site.
One hour a year. Walk the scenarios. The time to find a gap in your coverage is before somebody else finds it for you.
Grand Master Jeff Smith is the first PKA World Light-Heavyweight Kickboxing Champion, who defended the title seven times and retired 32–1 with 16 knockouts. He earned his black belt under Grand Master Jhoon Rhee in 1969 and served as Senior Vice President of the Jhoon Rhee Institute from 1970 to 1985. He is Chief of Instruction for Mile High Karate and co-author, with Grand Master Stephen Oliver, of Extraordinary Teaching. Read more from the Martial Arts Professional columnists.
