WHAT'S WORSE, OPERATING

WITHOUT INSURANCE
OR WITH THE WRONG POLICY
Information brought to your by Graham Slater is not advice, but observations noted whilst acting as a broker.

Operating a Martial Arts School with the 'Wrong Insurance' is worse than none at all because the owner -
# has paid for a policy that doesn't cover what they do
# believes they are covered and generally will not have a back up plan

These situations are more common than you think because insurance for martial arts requires a specialised policy. This is not necessarily the fault of the club owner, they may not have asked the appropriate questions to the broker or just assumed they are covered.  When an insurance advertising mentions martial arts, it is generally in the context of performing warm up exercises,  a fitness class, forms / katas and some pad drills. When it comes to 'sparring' or partner drills which may include full contact fighting, you need a specialty martial arts insurance package.

Not only is it important to have the right definition of sparring included, you may also need to clarify if other activities are included such as: gradings, seminars, workshop, fund raisers, tournaments, fight shows, exhibitions, demonstrations, camps / retreats / gasshuku etc.

Examples of the wrong insurance based upon
# Just having public liability (PL - slip & trip) without professional indemnity (PI)
The PI is where most claims arise from
There often grey areas in the coverage and ‘participation’ means sparring is actually covered
# Not including player accident with the (PL & PI)
PL & PI is an additional cover that can be accessed without having to be sued for negligence.
# Including property cover with a business pack when only leasing the building
Some operators have paid enormous insurance premiums covering the property when it is not necessary
# Not including the correct (PL & PI) when only taking a business pack on its own.
Not understanding how the combined business packs work, operators can easily select the wrong product

What could happen if insurance application form is not correctly filled out?
Some minor discrepancies will be accepted and if challenged can be explained to the broker without any issues. If a person has deliberately not disclosed various items, this could have an impact on whether a claim is paid, or the amount reduced. They would be deemed underinsured.

Operating a Martial Arts Club without insurance is a substantial risk for everyone involved in the business. The following issues will also be relevant:
# Clubs will find it hard to hire a venue
# Students will assume the club is not a professional operation and not feel confident to join the school
# Waiver forms rarely negates a compensation claim so clubs are more likely to be challenged in court
# An injured student can sue the club for compensation and the owner may have to fund their own legal defence
# A successful compensation claim can greatly diminish the assets of those being sued -             

Three things to remember when you run a martial arts school
# Preventing incidents in your school is much better than defending a claim from an injured student.
# Injured students don’t pay fees and can have a negative impact on your club.
# Pre-emptive precautions are better than re-acting to an incident.