Public Liability

PUBLIC LIABILITY - MARTIAL ARTS SCHOOLS

PUBLIC / PRODUCTS LIABILITY
What is the first line of defence for your business?

There are many answers to this question and it maybe by applying the appropriate risk management strategies and polices to prevent an incident. Next it maybe using an appropriately worded waiver form which can strengthening your defence in a claim. Whatever your strategy insurance will play a big part in your decision, so it deserves more of time to research it.


What level of liability do you need?
There are industry standards that professional bodies will recommend, but ultimately you will make that decision on the level of cover you require. The venue / landlord may specify a minimum limit of 10mil or 20mil Public Liability. According to our client needs about 20% of the fitness / martial arts businesses end up with the higher cover.
You will generally pay around 25% more for the 20mil cover.


The Public Liability cover for Martial Arts Schools is different to Gyms / PT Studios because of the diverse range of activities and equipment used.

Martial Arts schools / clubs require a specific type of cover.


The insurers that work in this space generally include all types of martial arts and combat sports such as these mainstream ones: Kickboxing, Muay Thai, Taekwondo, Karate, Kung Fu, Mixed Martial Arts (MMA), Brazilian Jiu Jitsu (BJJ), Ju Jutsu, Aikido, Kendo, Sumo, Iaido, Hapkido, Tang So Do, Kempo, Iaido, Ninjutsu, Kendo, Wushu, Sanda, Tai Chi, Wing Chun, Jeet Kune do, Sambo, Judo, Silat, Boxing, Krav Maga, Systema, Defensive Tactics etc.


What is important to know is each martial arts code has a risk rating attached to it. This becomes more important when a school introduces a new style that maybe rated as a higher risk by the insurer. All you have to do is let the broker know what you teach now and what you may do in the future. This way they can make sure you are covered for all the activities you provide or let you know if something is not going to be covered.

COVER LIMITS

10mil Public Liability 10mil Products Liability and 5mil Professional Indemnity or Civil Liability although 20mil PL is being requested more by venue hire facilities to teach and shopping centres to perform demonstrations.


All liability insurances are subject to limits on the amount payable and many have an excess also known as a deductible, which is deducted from the amount paid to the insured. It is common for there to be an excess of $1000 - $5000 depending on the policy but you can have the option of a nil excess which increases the premium.



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  • What level of liability insurance do you need?

    The industry standard is $10mil but venue and landlords are asking for $20mil. This is also packaged with Professional Indemnity or Civil Liability of $5mil - $10mil but generally the lower is enough.

  • Is there an excess to pay when you claim?

    As a standard there is usually $1000 or up to $5000 deductable with public liability insurance in the event you need to claim. However you can access a NIL Excess policy through us.

  • Will a public liability claim against your gym, raise your insurance renewal costs?

    Yes it can, especially if it is a significant amount that has been paid out. Other factors contributing to this price hike will be that the gym didn’t have very good incident reporting process, or the client didn’t sign a waiver, or the waiver wasn’t appropriate, the instructors were not industry qualified, or the operator was grossly negligent operating unprofessionally.

  • If the insurer has put up your insurance premium due to a claim, can you just switch insurers to get a better deal?

    You can ask your broker to try other insurers, but you will have to disclose all your previous claims for the past five years. There are a limited number of insurers that cover gyms and virtually only two, that will include martial arts. Your broker may recommend staying with the same insurer with a premium increase for 1-2 years rather than go to market. Having your public liability claim processed painlessly, should give you confidence, that you have the right insurer, as some that are cheaper, maybe a nightmare in the claims department. Your broker will advise you on the right insurer, based upon claims handling and price, as they have relationships with a number of them.

  • Why can’t some brokers get the best rates for your gym?

    - Some brokers belong to a buying group so their volume gives them better buying rates

    - Some brokers only get quotes from a couple of insurers and not from the full market

    - Your gym may have had a number of claims, so your premium maybe loaded or terms not offered

    - You may conduct activities that only a few insurers will cover reducing options

  • How much is martial arts club insurance?

    Prices will vary based upon the number of members, the annual turnover, state stamp duties, level of cover, broker fees and insurer's rates. You can obtain 10mil PL & 5mil PI/CL for under $1000 per year for a small gym.

  • How can gym owners reduce their public liability insurance?

    - Have a low claims ratio and/or have high level risk management policies.

    - Have the highest qualifications for their instructors and constantly improve them

    - Regularly do your own or get an independent risk assessors to review/audit your facility. 

    - Invest in more cameras to capture incidents, making it easier for insurers to defend against a claim.

    - Ask their broker for a multi policy discount (purchase a biz pack or another policy)

    - Find a broker with preferred rates (special program) where they pass on the rates to the client.


  • What do you do in the event of a public liability claim against your martial arts club or yourself?

    - inform your broker of an incident that may develop into a claim

    - do not compromise the insurer’s ability to defend the claim.

    - capture all the information relating to the incident in a comprehensive report (incl witnesses, video footage etc)

    - capture all communication with the injured party relating to the incident (phone, emails, social media posts)

    - do not admit fault to the injured party

    - do not hand over your insurance details to the injured party 

    - do not to offer an injured person a financial payout as this may be deemed an admission of liability

    - do show concern to the injured party, put their membership on hold and wish them a speedy recover to return


  • Are all martial arts public liability claims defended by the insurer?

    No, as it depends on a number of factors that need to satisfy the insurer’s criteria. They have the right to decline a claim, if they are not met. Here are a number of items, that may prevent a claim from being supported by an insurer.

    - If there isn’t a proven physical injury registered recorded at a gym facility.

    - If the gym doesn’t have a current financial policy.

    - If the gym didn't pay the premium before the end of the insurer’s trading terms.

    - If the gym hasn’t met their obligations of the policy


  • What is the time period for a public liability claim to be accepted?

    The maximum period is 7 years, but we have only experienced claims going back 4-5 years. We found that a number of gym owners didn’t keep adequate records of incidents. This would then compromised the insurer’s ability to defend the claim, making it harder to win the case. This is why it is essential for gym owners to keep comprehensive records of all claims for 7 years. 

This is a list of how some martial arts injuries have occurred

- tripping; over a mat or over their own feet

- slipping; on wet mats from sweat

- unsupervised; doing their own warm up 

- not listening or adhering; to the instructor’s direction

- torn muscles / tendons over extending and not tapping

- impact trauma; from a kick, punch, knee, elbow for example 

- concussion; hit in the head and thrown to the floor

- broken bones; falling and training partners
By reviewing coaching methods,  preparing classes, checking for obstacles on the mats approves risk management and reduces incidents.

WHAT IS THE MOST EFFECTIVE 
MARTIAL ART?

TAEKWONDO VS KUNG FU?
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