Most insurance problems faced by martial arts school owners in Australia are not caused by reckless behaviour or poor instruction. They are caused by assumptions—about what is covered, who is insured, and how policies actually respond when something goes wrong.



These mistakes are common, repeatable, and often avoidable. Unfortunately, they are usually only discovered after an incident occurs, when the cost of fixing them is highest. This article outlines the most frequent insurance mistakes made by martial arts school owners and explains how to avoid them without overcomplicating operations.

Mistake #1: Assuming “Martial Arts Insurance” Means Full Coverage

Many policies are marketed broadly as “martial arts insurance,” leading owners to believe all activities are automatically included. In reality, coverage depends on how activities are defined in the policy wording, not the marketing label.

Commonly overlooked exclusions include:

• Certain types of sparring or contact
• Weapons-based training
• Advanced throws or grappling
• Competitions and demonstrations

How to avoid it:
Ensure all training activities are explicitly disclosed and clearly reflected in the policy schedule and wording—not just mentioned during an online quote process.

Mistake #2: Relying on Public Liability Alone

Public liability insurance is essential, but it is not sufficient on its own for martial arts schools. Many claims arise from allegations about instruction, supervision, or judgement, not environmental hazards.

Without adequate professional indemnity:

• Instructors may be personally exposed
• Legal defence costs may not be covered
• Claims may be partially or fully denied

How to avoid it:
Confirm that professional indemnity is included, appropriately limited, and aligned with the way instruction is delivered in your school.

Mistake #3: Not Properly Covering Assistant or Volunteer Instructors

Martial arts schools often rely on senior students, assistant instructors, or volunteers. However, insurance policies frequently define “insured persons” narrowly.

If an assistant instructor is involved in an incident and not properly included:

• The insurer may dispute responsibility
• Liability may fall back on the school owner personally

How to avoid it:
Clarify who is authorised to instruct and ensure all such roles are covered under both public liability and professional indemnity.

Mistake #4: Forgetting About Events, Gradings, and Seminars

Many schools run gradings, seminars, or demonstrations without checking whether these activities are covered under their standard policy. Events often change the risk profile due to:

• Increased intensity
• External participants or instructors
• Spectators and public exposure

How to avoid it:
Review event-related cover whenever an activity falls outside normal weekly classes—even if it occurs at your usual venue.

Mistake #5: Assuming the Venue’s Insurance Covers the School

Some school owners believe that a landlord’s or venue’s insurance extends to their martial arts activities. In most cases, this is incorrect.

Venue insurance typically covers:

• The building itself
• Venue-owned risks

It does not usually cover:

• Instructor negligence
• Participant injuries
• Instruction-related claims

How to avoid it:
Treat venue insurance as separate from your own. Your school should always carry its own appropriate cover.

Mistake #6: Failing to Update Insurance as the School Evolves

Martial arts schools rarely stay static. Over time, schools may:

• Add new classes or age groups
• Introduce sparring or advanced techniques
• Hire additional instructors
• Run larger events

Insurance that was appropriate at startup may no longer reflect current operations.

How to avoid it:
Review insurance arrangements regularly, particularly after operational changes.

Mistake #7: Weak Documentation and Incident Reporting

Insurance claims rely heavily on documentation. Schools that lack clear records often struggle to defend their position, even when instruction was reasonable.

Common documentation gaps include:

• Incomplete incident reports
• Unclear instructor roles
• Lack of safety procedures
• Inconsistent communication with students and parents

How to avoid it:
Maintain simple, consistent documentation that reflects how the school actually operates.

Mistake #8: Choosing Insurance Based on Price Alone

Lower premiums can be appealing, but they often reflect narrower cover, higher excesses, or stricter exclusions. The real cost of insurance is revealed during a claim—not at renewal.

How to avoid it:
Evaluate insurance based on relevance, clarity, and support—not just price.

Mistake #9: Using Generic Fitness Insurance Advice

Advice designed for gyms or personal trainers often fails to address martial arts realities such as controlled contact, progression systems, and instructor hierarchies.

How to avoid it:
Seek guidance from providers who understand martial arts specifically, such as Martial Arts Australia, where insurance frameworks align with real-world instruction.

Mistake #10: Waiting Until There’s a Problem

Perhaps the most common mistake is postponing review until an issue arises. By then, options are limited and stress levels are high.

How to avoid it:
Treat insurance review as part of professional practice, not crisis management.

Final Thoughts

Insurance mistakes in martial arts are rarely about negligence—they are about misunderstanding. By recognising common pitfalls and addressing them proactively, school owners can reduce disputes, protect their instructors, and operate with greater confidence.

Avoiding these mistakes does not require excessive insurance. It requires appropriate insurance, aligned with how martial arts schools actually function.