Academy Insurance - Questions

[Sunrunner]

A few questions, mostly directed to owners of academies: I've heard various things about getting insurance coverage...what is your take on this? What do insurance companies offer? What kind of financial protection does one need when one owns a martial arts academy? Is it necessary? Is it required by laws in some places or is it just good business and good customer care? Do places that hire martial arts teachers cover them under their own insurance or liability?

[tkdBill]

There are companies that offer martial arts insurance. This is liability insurance to protect you if someone gets hurt while training with you. I would consider it essential to avoid financial disaster if an accident happens. Tearing a knee ligament would run into tens of thousands of dollars in medical bills, which you may be required to pay.

Even if you have a "hold harmless" waiver, you could still have to hire a lawyer and go to court to prove the waiver if you are sued. That could cost thousands, and might not hold up. If you are insured, the insurance company would have to fight the lawsuit (or settle it).

I pay about $600/year, which I believe is typical.

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[Sam]

the requirement to have it depends on where you train, state / coutnry laws and if you're renting a place then they might insist as well.

[Aodhan]

A few questions, mostly directed to owners of academies: I've heard various things about getting insurance coverage...what is your take on this? What do insurance companies offer? What kind of financial protection does one need when one owns a martial arts academy? Is it necessary? Is it required by laws in some places or is it just good business and good customer care? Do places that hire martial arts teachers cover them under their own insurance or liability?

1) It varies depending on the company. You need to look for a company that specializes in business insurance, not the typical state farm guy.

2) It varies

3) I would do two things as an owner. 1- Incorporate. This way, if everything goes south, they cannot attach your personal assets, only the assets of the studio. 2- Get the insurance. It's cheap peace of mind.

4) It is required some places, and it is both good business and customer care. (Although I wouldn't advertise the insurance, you'll get some wiseass that gets hurt just to sue.)

5) It would depend on your contract. Some businesses that hire instructors (Such as gyms, etc) will probably cover at least a minimum in insurance due to the nature of their business. I would check, and if they don't, or if it is minimal I would supplement it.

I will always have insurance. My uncle owned a gas station in Wisconsin, got in money trouble, dropped his health insurance, and later had an accident that paralyzed him. He lost everything. Insurance is cheap peace of mind.

Aodhan