# Do most schools have insurance?



## bluedragon1 (Oct 23, 2017)

I hear about schools having insurance. Is this an insurance to protect from lawsuits if someone gets hurt or is to cover medical expenses in case someone gets hurt?

Do schools want someone to use it if they genuinely get hurt? What should I know as a student in case this does happen?


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## hoshin1600 (Oct 24, 2017)

bluedragon1 said:


> I hear about schools having insurance. Is this an insurance to protect from lawsuits if someone gets hurt or is to cover medical expenses in case someone gets hurt?
> 
> Do schools want someone to use it if they genuinely get hurt? What should I know as a student in case this does happen?


disclaimer:  this is not legal advise and im not in insurance , this is just my opinion and applies only to the US.

as a student you dont need to know anything or do anything.
schools have (or dont have) insurance that is liability insurance.  it protects the owner/ company and teachers when there is a lawsuit due to injury.
its not like car insurance or typical medical insurance you get from an employer.  if you get injured you dont go to your teacher and have him put in a claim.  it doesnt work like that and is not designed to to that.   what happens is ,,student gets injured, student goes to ER gets a $5,000  bill from doctor and takes the school to court for damages.  student tries to prove the company/ teacher is liable due to negligence and if he wins he is awarded as the judge sees fit. (of course the opposite is true , the judge could say there was no negligence and the student gets nothing because its not the schools fault or the student signed a liability waiver that the judge up holds)  the schools insurance then kicks in to make the payment "as per the policy"  just because the judge awards $5,000 does not mean the insurance pays the five grand.  but thats for any and all insurance in the US.
in the end everyone gets screwed except of course the lawyers.

moral of the story......insurance is to protect the school owner from losing his home and eveything he owns.......if you get injured, accept the fact that in all probability its your fault or that crap just happens....dont be the A hole who has to sue everyone just because your angry that you got hurt.  if you cant except injuries happen, dont train


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## Bill Mattocks (Oct 24, 2017)

Schools (and other businesses) have insurance to protect their assets.  That is generally in the form of liability insurance, sometimes property insurance, especially if the business is owned by the school and if there is a mortgage, it's required.

In addition, schools may choose to incorporate for the purposes of separating their personal assets from those of the business in case of liability such as a lawsuit.

One of the advantages of being part of an association or a chain is that often such groups can offer liability insurance specifically tailored to martial arts type businesses at reasonable costs.

Some businesses may choose to forgo such insurance.  They have to decide for themselves what their exposure is and their comfort level with being uncovered.


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## bluedragon1 (Oct 24, 2017)

Thank you for the replies. That was exactly what I was looking for. Thank you.


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## JR 137 (Oct 24, 2017)

Just to add...

Some MA schools that rent the property may be required to have liability insurance as part of the lease agreement.


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## dvcochran (Nov 12, 2017)

bluedragon1 said:


> I hear about schools having insurance. Is this an insurance to protect from lawsuits if someone gets hurt or is to cover medical expenses in case someone gets hurt?
> 
> Do schools want someone to use it if they genuinely get hurt? What should I know as a student in case this does happen?


Sadly, in this day and age I think it is a necessity. Most all schools of any size have LIABILITY insurance. It is very defined as what/when it  covers and it alone will not protect your personal assets in the event of a lawsuit. That is a function of how your business is setup, (Inc., LLC, LMC, etc...). In my experience Liability only insurance is very inexpensive and a must have. I paid $11/mo back in the 80's. I recall it was based on building sq/footage and student size. It will have a max payout and is very, very defined so that a claim is a bit innocuous. For 4 years our Dojang had a USA TKD participant program. I added a rider to the policy to cover only this part of the business. It increased my liability coverage and had a minor personal injury clause with a $5k max cap and a 20 participant cap. It was month-to-month policy I used around 4-5 months/year. I believe it was an extra $25/mo or so. A minor benefit to having Liability insurance is my property insurance went down slightly.

Insurance coverage often seems to be treated like Voodoo by MA school owners/instructors. Many were taught loyalty above all and regard their school/instructor above reproach. Others are willing to process whatever physical activity they do and any ensuing injury as just part of the risk of doing what they love. I appreciate and love that mindset. However, the reality is there are others that expect someone to fix their problem, even it they were complicit in creating it. All that to say, I fully respect instructors who take the high road of ethics, but it leaves them very vulnerable. It's the world we live in. An ounce of prevention is well worth it. 
If you do not already have a written release on your new student application get one. Yes, if written poorly they are legally weak as many will argue. However, if an issue does go before a judge or arbitrator it is crucial. I have been there and it what made the legal decision rule in my favor. It explains that the student knew the risks and agreed to take them. I also use it when talking to a new student to help them understand they are responsible for themselves as much as humanly possible.


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## CB Jones (Nov 12, 2017)

Bill Mattocks said:


> One of the advantages of being part of an association



The association we compete in does this.  Member dojo can be added to the association insurance and buy insurance for their tournaments thru the association.


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## JowGaWolf (Nov 12, 2017)

Business advice.

If you like to keep your home and things you own, then the best way is to set yourself up as an LLC and then get insurance.  Anything less than that will be a big risk to your well being as a business owner.


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