By John Graden
In 2018, Bill Cosby was convicted of a sexual assault from decades earlier. What does that have to do with your martial arts school?
This is an important lesson on the distinction between a martial arts school insurance policy that is specific to a time frame and a policy that is specific to incidents.
Claims Based Coverage is specific to a time frame. That time frame is usually limited to the duration of the policy.
Occurrence Based Coverage covers you for the time period of the policy and it continues to cover you for the legal statute on a covered claim.
This should cover you years later, if the incident occurred during the occurrence period of the policy.
A Claims Based Policy only covers you for claims that are made during that policies coverage period, which could be limited to the current year only.
Cosby's situation, although in a whole different league, can provide some real-world clarity on this distinction.
An Occurrence Based Coverage probably would have covered him for the claim that occurred while the policy was active, even if it was years later.
It is very important to consult an experienced insurance professional in the martial arts and fitness industry who knows about the coverage on these studio policies.