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.

MATA recommends contacting Cathy Young Potter of Sports and Fitness Insurance Corp. (SFIC) at MATAInsurance.com or directly at 800.844.0536 Ext. 2250 cypotter@sportsfitness.com 


John Graden
John Graden

John Graden is widely credited with leading the martial arts school business into the modern age. He is the founder of the first successful professional association and trade journal. MA Success editor John Corcoran first called him a “visionary” in 1995. Martial Arts World magazine dubbed him, The Teacher of Teachers. Mr. Graden’s leadership was recognized in many mainstream media outlets including a cover story on the Wall Street Journal, documentaries on A&E Network, and as a guest on the Dr. Oz Show and many others.

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