Martial Arts Studio Business Insurance

Getting insurance for your martial arts studio is essential.

Martial arts studios need to be protected against claims of things like professional negligence, personal injury, and breaches of contract.

For example, a student is injured in one of your studio’s classes due to instructor negligence, or an instructor injures themselves and requires significant time off.

We’ll help you find the most personalized and affordable coverage for your unique business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Martial Arts Studio

General liability insurance is — generally speaking — one of the most important insurance policies for martial arts studios.

Some of the risks general liability insurance covers are:

Bodily injury
Property damage
Medical payments
Legal defense and judgment
Personal and advertising injury

There are a number of further policies that your martial arts studio can use to compound the protection of general liability. Some of these include:

Professional liability insurance: Provides protection in the event that one of your students believes your services have caused them injury and sues.
Commercial property insurance: Provides financial support in the event that a covered event like a fire destroys business-related property.
Workers’ compensation insurance: Assists instructors and other employees who were injured or became ill as a result of work-related activities.

There are two principal types of insurance providers to bear in mind when shopping for your martial arts studio’s coverage:

Traditional brick-and-mortar insurers — Includes firms like Hiscox, Nationwide, and The Hartford.
Online insurers — Includes firms like Tivly and Next.

While traditional insurers tend to be more renowned, online insurers are becoming popular (particularly among new, small businesses) as they grant similar protection at a reduced price.

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Cost of General Liability Insurance

On average, martial arts studios in America spend between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a martial arts studio to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

Location
Deductible
Number of employees
Per-occurrence limit
General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Common Situations That General Liability Insurance May Cover for a Martial Arts Studio

Example 1: A student slips on a wet floor in your restroom, breaks an arm, and decides to sue your studio because you didn’t clearly mark the wet floor. General liability insurance would cover your legal defense costs and any required settlement.

Example 2: As you carry some martial arts equipment from a back room into your studio, you fail to see a student’s parent and knock him over. He breaks his tailbone as he falls onto the tile floor and asks you to pay for his medical care. General liability insurance would cover his medical treatment.

Example 3: A competitor sues you for libel. While you disagree with the accusation, you realize you need an attorney to protect your interests. General liability insurance would cover your legal defense costs.

Other Types of Coverage Martial Arts Studios Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance

While you strive to ensure each of your students receive the best instruction on how to defend themselves, there’s always a chance someone might decide your services caused them harm. If a student sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and real estate necessary to run your studio. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your martial arts studio:

Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
Stay up to date with business licensing.
Maintain your corporate veil.

Martial Arts Studio Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes. A martial arts studio is exposed to plenty of risks that put its financial security at risk. The most effective form of protection is proactively obtaining business insurance.

That being said, there are instances in which financial security isn’t the only goal of insurance. For example, if you are legally obligated to carry specific policies (e.g., workers’ compensation insurance).

Not necessarily. Certain exceptions may be written directly into your martial arts studio insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.