How Much Does Martial Arts Insurance Cost in Australia?
Martial arts are a great way to keep fit and healthy. However, if you're involved in martial arts, you'll be exposed to different types of risks that can lead to injury or even death. As such, it's important that you have insurance coverage in place before engaging in martial arts training. In this article we'll look at how much it can cost for martial arts insurance in Australia.
How cost changes based on what you are doing and the size of your operation
If you are an instructor, you may be required to have additional insurance. If your club is big enough and does things like running competitions or training kids, then it will also need a higher level of insurance.
In Australia, the cost of martial arts insurance is determined by several factors, including the organization or association providing the coverage, the risks involved and the state or territory where you live. The estimated costs for martial arts insurance in Australia can range from $500 to $5,000 per year.
It's important to note that many martial arts organizations aren't recognized as businesses by their respective states, which means they often aren't eligible for government-funded employee health schemes.
If you're looking at competing in MMA competitions or other events around the country, then this can be another factor affecting how much your martial arts insurance costs.
The cost of your martial arts insurance policy will be affected by the size of your operation. Your insurer will consider several factors when calculating the cost of your policy, including:
- The size and nature of your business. Is it a small club with only one instructor, or does it have multiple instructors and plenty of students? Does it hold classes in just one location or several? If you teach multiple martial arts disciplines at different locations, how often do you travel between them?
- The frequency with which you'll be using the insurance policy. Will it cover events or competitions that happen once every few months or years, or could they occur weekly (or even more often)?
What are the relevant risks and insurances for your chosen martial art?
Your martial art is a strenuous physical activity that carries inherent risks. We've listed a few common risks below, along with some insurance products that can help cover them:
- Injury - While injuries vary in severity and type of damage sustained, some examples include joint sprains or fractures; soft tissue damage such as tendonitis; nerve damage; and concussion. Insurance products such as private health insurance or income protection cover medical expenses from these injuries if you suffer from one while participating in your chosen martial arts discipline.
- Liability claims - If you're training people who are paying to learn from you, then there's also the possibility of being sued by a disgruntled student who claims they were injured while doing so. Your martial arts club may have policies in place should this happen but it's still wise to purchase private liability insurance for peace of mind when training others in your chosen discipline outside of competitions or classes at local gyms/schools.
- Property and equipment - Taking out property and equipment insurance means you won't have to pay for damaged or stolen equipment out of your own pocket if you own a club or gym.
If you're a martial arts instructor, it's important that you have adequate insurance cover for your business. This can include private health cover and income protection in case of injury while teaching or training.
Insurance requirements, risks, factors affecting costs, and range of costs:
Martial arts clubs and instructors
We’ve found that the cost of martial arts insurance varies from state to state. It also depends on how big your operation is and what kinds of risks are associated with teaching a specific martial art.
- In Victoria, insurers have different requirements for club operators and instructors – such as whether they need to pay an additional levy fee or not. If you teach taekwondo in Victoria, for example, then you might be required to pay this fee regardless of whether your students are insured or not. On the other hand, if you teach wushu (the Chinese name for Kung Fu), then this won't apply to you at all!
- Some states require instructors who offer paid lessons outside their own premises (such as at another school) get additional cover under their public liability policy as well as personal accident cover through their employers' group policy or via an independent broker like us here at Combat Sports Insurance.
Let’s look at an example of what this means in practice: A club with 30 members and no history of claims would likely pay less for their insurance than a club with 200 members, with a few incidents in their past.
Read our blog “Everything you need to know about martial arts club insurance” for more information.
Events and fight promotions
Events and fight promotions are a great way to raise money for your club, but there are risks involved in holding them. If you want to participate in these types of events, you'll need to purchase a commercial general liability insurance policy that will cover all the participants and spectators. Here's how much it costs:
- $1,000—$2,000 annually for an event with 1-5 competitors
- $1,500—$3,000 annually for an event with 6-10 competitors
- $2,500—$5,000 annually for an event with 11-20 competitors
The type of event you're hosting also affects its cost. For example:
- A graduation ceremony or seminar would typically be covered under special events coverage
- A fight night would typically be covered under sports & recreation coverage
Organizations
There are a range of risks for martial arts organizations, including:
- Accidental injury to participants (i.e., falls and collision injuries)
- Damage or destruction of property
- Intellectual property loss, including copyright infringement and theft of brand assets such as uniforms and equipment
These risks can be managed with the right insurance coverage. If you’re unsure how much your organization needs in terms of protection against these types of losses, speak with one or more insurance brokers.
Your insurance cost will vary based on the factors listed above
The cost of your martial arts insurance policy will vary based on the factors listed above.
Do you want to know how much your martial arts insurance could cost? Start by getting in touch with one of our experienced advisors today!
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