Understanding Public Liability Insurance for Martial Arts & Fitness Clubs

By Graham Slater, Martial Arts Australia Founder & Industry Insurance Specialist

Running a martial arts school or fitness club comes with an enormous responsibility — not just to teach well, but to protect your students, your instructors, and your business. Public Liability is often the first policy owners look at, but many misunderstand what it actually covers, how much they need, and what sits behind a properly protected operation.

Below is a practical FAQ to help club owners confidently understand their options and obligations.

What is Public Liability Insurance for Martial Arts & Fitness Clubs?

Public Liability protects your club if someone is injured or their property is damaged due to your business activities.

But before relying on insurance, remember this:
Your first line of defence is always risk management — not the policy.
Safety procedures, staff training, equipment checks, and properly worded waiver forms reduce your exposure long before a claim reaches an insurer.

Insurance is your backup plan. Prevention is your primary plan.

What level of liability cover do I need?

Industry standards recommend $10 million, but venues, councils, and landlords increasingly require $20 million.

Choosing the right level depends on:
• Venue requirements
• Student numbers
• Event activity
• Your business size and risk profile

A specialist broker can guide you clearly.

Does my gym space affect my risk level?

Yes. Martial arts activities carry different risks compared to gym or strength areas.

If your club includes both, insurers need to know:
• How the space is divided
• What percentage is used for martial arts
• What percentage is for gym use

This ensures your policy reflects your actual risks rather than a generic guess.

Does Public Liability include Professional Indemnity?

Most martial arts industry policies bundle Public Liability with:
Professional Indemnity, or
Civil Liability

These protect you if a student claims your instruction, advice, supervision, or coaching caused harm.

For instructors, this is essential cover.

Should I consider Management Liability too?

If you employ staff, operate multiple branches, or run committees, the answer is usually yes.

Management Liability protects owners, directors, and staff from allegations involving:
• Bullying or harassment
• HR disputes
• Poor management decisions
• Compliance issues

More clubs are adding it as they realise internal risks can be just as serious as mat-floor risks.

What is my legal obligation as a school or gym owner?

You have a moral, ethical, and legal obligation to operate around industry standards involving:
• Safety
• Duty of care
• Coaching practices
• Legal compliance

Instructors give advice, match students, and set training scenarios. Sometimes instructors make mistakes. Sometimes students ignore instructions. Insurance must be backed by strong procedures.

Is Personal Accident or Income Protection included?

Not automatically. These are separate policies that cover individual injuries or income loss, not liability claims against your club.

Is there an excess when making a claim?

Yes, most liability policies have an excess. Your broker will clarify the amount.

Will a claim increase my renewal cost?

It can — depending on:
• Claim severity
• Your historical claim frequency
• Insurer risk appetite
• Evidence of negligence

One claim won’t destroy your premium, but multiple ones will impact pricing.

Can I switch insurers after a claim?

If a claim is still open, many insurers won’t take on the risk.
If it’s closed, you may move — but insurers share claims data, so switching won’t magically reset your pricing.

Why can’t some brokers secure the best martial arts rates?

Because martial arts is a specialist class of insurance.

General brokers may:
• Misclassify activities
• Miss important details
• Fail to declare gym areas properly
• Use unsuitable policy wording

A broker who understands martial arts operations can save you from costly gaps.

How much does martial arts insurance cost?

Fees depend on:
• Member numbers
• Revenue
• Government duties
• Cover limits
• Insurer rates
• Club activities

Every business is different — there is no one-size-fits-all price.

How can I reduce my Public Liability insurance cost?

Cost goes down as risk goes down.

You can reduce risk by:
Stronger waiver forms
Updating safety policies
Maintaining clean, safe mats
Recording incidents properly
Improving staff training
Posting rule signage
Reducing trip hazards
Ensuring equipment is serviced

The fewer incidents you have, the better insurers treat you long-term.

What should I do if a liability claim is made?

Follow this process immediately:

1. Document everything.
2. Notify your broker immediately.
3. Never admit fault.
4. Provide requested information.
5. Follow your procedures exactly.

Let the insurer handle the process — don’t try to manage a claim yourself.

Are all claims defended by insurers?

Most are — unless:
• There’s clear negligence
• Documentation is missing
• The club ignored safety procedures

Claims are much easier to defend when clubs keep clear records.

How long does a claim take?

Anywhere from months to years depending on the complexity and legal involvement.

What other insurance options do clubs commonly need?

Event Cancellation Insurance

For tournaments, seminars, combat events, and other functions disrupted for reasons beyond your control.

Equipment Cover

Protects mats, AV gear, cameras, lighting equipment, and portable martial arts gear.

Prize Indemnity Insurance

Useful for combat sports events offering high-value prizes — if someone wins legitimately, the insurer pays the prize value.

Final Thoughts: Insurance Should Empower Your School — Not Confuse It

Martial arts and fitness clubs face unique risks that general insurance products rarely understand. The right coverage protects your reputation, your students, your instructors, and your future.