Liability Insurance for Martial Arts

When you own a martial arts studio, you always keep a close eye on your cash flow and reserves. You want to keep your expenses to a minimum, so you can grow your business and make a profit. 

Of course, there are some bills that you can save money on and other ways to make money. One thing that you shouldn't avoid is carrying liability insurance for your martial arts school. This guide can help you better understand liability insurance and the benefits that make it a necessity. 

What Is Liability Insurance? 

Liability insurance is a type of insurance that protects businesses when they're sued by another party. These lawsuits typically stem from injuries or accidents that occur in the business's location. 

When you're teaching martial arts to inexperienced adults and children, injuries and accidents do occur. Without liability insurance, your martial arts studio might need to pay a judgment or settlement that could cost thousands of dollars. 

You and your gym might also be the subject of a lawsuit because of something you or an employee did or said that was inappropriate. In some cases, a former student might claim that you didn't deliver the results promised.

This type of settlement or judgment could wipe out your cash reserves or force you to close your business. Depending on your business structure, the claimant might be able to go after your personal assets. 

Liability insurance will cover the costs of a lawyer and pay any settlement or judgment against your business up to the amount listed in the policy. You don't want to risk your business and all your hard work by not carrying a liability insurance policy. 

What Does General Liability Insurance Cover? 

If you've never had to purchase a liability insurance policy, you probably want to know what it covers. A liability policy covers a variety of scenarios. Here's a look at some things it could cover:

Injuries and accidents

Torn muscles and a broken bone aren't typical but not unheard with a physical activity such as a martial arts class. If one of your students is injured, this policy will settle the matter or pay a judgment.

Damages to rental property

With most commercial rental leases, you're responsible for any damages to the property. Liability insurance might cover this type of damage, including things such as water damage. 

What Are the Benefits of Liability Insurance for Your Martial Arts School?

With a tight budget, you want to spend your money on things that offer you the most benefits. Liability insurance should be high on that list for all the benefits it offers. These benefits include:

An advocate

When you're served with legal paperwork of a lawsuit, it can be scary. Your liability insurance policy provides you with an attorney who advocates for you. They'll negotiate a settlement and represent you in court if it's necessary.

Property damage

It might be that you offer your students the opportunity to have a lesson or exhibition at their home during a party or other event. If something becomes damaged, perhaps a broken window, liability insurance covers the costs. 

Protects your business and cash reserves

When you need to hire an attorney and pay a settlement or judgment, the cost might be so high that you need to declare bankruptcy or deplete your cash reserves. Liability insurance covers all these costs.

Protects your personal assets

In some cases, the person who sues you can go after your personal assets if the business doesn't have enough value or cash to pay the settlement or judgment. It depends on the way your business is set up. A liability policy protects your personal assets too. 

Compliant with state and local regulations

Some states and local areas require all businesses to carry a certain level of liability insurance. They do this to protect both small businesses and any injured party because the insurance company pays.

Condition of a loan

If you took out a loan for startup costs or needed a short-term loan to shore up a cash flow problem, then one of the conditions of your is to maintain a certain level of insurance. This protects the lender's interest in your company if you're sued.

Attracts new students

Your clients want to know that they're safe while learning a new martial art form. The fact that you carry liability insurance shows that you care about their overall well-being. You can add insured to all of your advertising material to make sure potential clients know that you carry insurance.

Protects you against the actions of your employees

No matter how careful you are in your hiring process and overseeing your employees, you can't be there every moment of the day. If you have an employee who makes an unwanted advance or says the wrong thing, you might find yourself in the middle of a lawsuit with your martial arts school as the named party. 

The largest benefit that you gain from liability insurance is financial protection for your business and the hard work you've put into it. 

When your own a martial arts gym, it's essential that you protect your business. In addition to taking every precaution, you need liability insurance. It protects your investment against the unexpected. 

At Nexo Fit, we partner with gyms to help them protect and grow their business. We offer the liability insurance you need. We also offer a variety of services, such as background checks, websites, equipment financing, and more. A bundle of services and products can save you money.  for more information.