A guide to rules, insurance, and surety bonds for MMA events.
If you have been hosting grappling events but you are looking to break into MMA there are a few extra steps that you will need to take when it comes to state rules and regulations. Part of those rules and regulations include insurance requirements and other rules that jiu-jitsu promoters typically do not have to worry about.
This article will provide you with a blueprint to get you started while you are in the planning stages of your business. Additionally, this summary will provide you with the resources you need to obtain these certificates and policies so that you can focus on hosting a successful mma event.
The Regulation of MMA:
Mixed Martial Arts is a regulated combat sport, unlike Brazilian jiu-jitsu which is an "unregulated" combat sport. That means that in the United States, mixed martial arts (MMA) events are regulated by the athletic commission of each state. The specific regulatory bodies vary, but they are typically called the "State Athletic Commission," "Athletic Commission," or "Combat Sports Authority." Some states, such as California and New York, have a highly developed and active regulatory body for MMA, while others may not regulate the sport at all. The extent of regulation can also vary greatly from state to state, with some states having very strict rules and regulations, while others have less stringent requirements.
A mixed martial arts promoter can expect the following requirements from a state athletic commission when hosting an MMA event:
Licensing: The promoter will likely need to obtain a promoter's license from the state athletic commission to legally host an MMA event.
Event regulations: The state athletic commission will enforce regulations that cover various aspects of the event, such as fighter medical requirements, weight classes, rules of competition, and drug testing.
Safety standards: The state athletic commission will set safety standards for the event to ensure the well-being of the fighters, such as ring and cage specifications, safety equipment requirements, and emergency medical plans.
Referee and judging oversight: The state athletic commission will oversee the referees and judges at the event to ensure that they are properly licensed and trained and that they are enforcing the rules and making fair decisions.
Insurance & Bond requirements: The state athletic commission may require the promoter to have liability insurance to cover any potential accidents or injuries that may occur during the event. In addition to insurance requirements, the mma promotor may also be required to purchase a surety bond for the event.
Event fees: The promoter may be required to pay fees to the state athletic commission to cover the costs of overseeing and regulating the event.
As you can see if you are thinking about starting up your mma promotion you will need to be prepared to follow the rules of each state athletic commission, as well as hire the proper officials, purchase the required insurance policies, and issue your surety bond.
To start we suggest you follow these steps to determine the state requirements for insurance and bond amounts for combat sports:
Visit the state government's website: Look for the official website of the state government and search for a section on athletic regulation or sports commissions.
Contact the state's department of consumer affairs: Some states have a department of consumer affairs that oversees athletic regulation. Contact them to find out who the athletic commissioner is and ask if there is anyone you can speak with that can answer any of your initial questions about hosting an mma event.
Search for state athletic commission websites: Some states have their athletic commission websites that provide information on the commission and its members, and activities, including the athletic commissioner.
Some examples of insurance requirements from the state:
In Kentucky - "insurance for contestant mandatory: $5000 payments for injury and $5000 for death. A professional fighter's maximum deductible is $1000 and an amateur's deductible can be no higher than $500. Certificate of insurance due 2 days before fight."
In Wisconsin, those limits are much higher than in Kentucky whereas their rules say that " Any licensee authorized to conduct professional contests or amateur unarmed combat sports contests shall insure each contestant participating for hospital, nursing, and medication expenses and physician's and surgeon's services according to an equitable fee schedule, not to exceed in the aggregate $25,000, to be paid to, or for the use of, any contestant to compensate for injuries sustained in any such contest; and shall insure each contestant for not less than $25,000 to be paid to the contestant's estate in the event of the contestant's death as the result of participation in the professional contest or amateur unarmed combat sports contest."
In addition, in Wisconsin, a mma promoter will also need to purchase a surety bond of $10,000. The cost of this bond will depend on the credit score of the person applying for it.
Some States Require Surety Bonds:
A surety bond for a mixed martial arts promoter works as a guarantee to the state athletic commission that the promoter will comply with all regulatory requirements. If the promoter fails to comply with these requirements, the state athletic commission can claim the bond to recover any damages or losses.
Here's how it works:
Obtaining a bond: The promoter must purchase a surety bond from an insurance company or bonding agency. The cost of the bond is typically a percentage of the bond amount required by the state athletic commission.
Bond amount: The state athletic commission will set the required bond amount, which is usually based on factors such as the size and frequency of the promoter's events, their financial stability, and their history of compliance with regulations.
Bond activation: If the promoter fails to comply with regulations, the state athletic commission can claim the bond to recover any damages or losses. The insurance company or bonding agency that issued the bond will then investigate the claim and may pay out up to the bond amount to the state athletic commission.
Bond renewal: The promoter will typically be required to renew their bond each year and may need to purchase a new bond if the state athletic commission increases the bond amount. By obtaining a surety bond, the promoter is ensuring that they can fulfill their obligations to the state athletic commission, and they are protecting the athletes, fans, and others involved in the event.
We can handle getting you the bond!
Fill out this quick application and you will get a no-obligation quote today. Someone from our team will reach out to you within an hour of submission, or just give us a call if you need help applying.
Spectator Liability Insurance:
In addition to the state insurance requirements for the participants you also need to find out what type of venue insurance requirements you need for the event. Unlike the state, which is focused on fighter liability and safety, the venue is usually concerned about having coverage for spectators who come to watch the MMA show.
Typically the state athletic commission focuses on participant insurance mandates and the venue will dictate the amount of "spectator liability coverage" that you need to host the event. You can purchase "spectator only" event insurance for mma events here below otherwise, they can sometimes purchase the spectator and participant liability coverage in special bundled packages.
Event Packages For Promotions:
Event Combat Sports insurance typically has multiple layers of coverage consisting of liability insurance for spectators at the event, liability insurance for participants in the events, as well as participant limited medical expense insurance coverage for the participants in the event and sometimes can be purchased in a bundle. In addition to this coverage, if you have invested in expensive equipment like a cage, grappling mats, or other electronics for your events then you will want to consider purchasing additional equipment insurance for your small business which also can be included for a little extra cost.
As the popularity of mixed martial arts (MMA) continues to grow, it is increasingly important for event promoters to have the right insurance and surety bonds in place. These measures are necessary to protect both the fighters and the promoter in case of injury, damage, or other unexpected events.
One of the main reasons why insurance and surety bonds are so important for MMA events is because of the high risk involved. MMA events typically involve intense physical contact, which means that there is a higher risk of injury to the fighters. To ensure that medical expenses are covered in case of injury, promoters need to have medical insurance in place. In our opinion, even if the state does not mandate medical insurance for the fighters we think it should be provided at some level by the promotion.
Additionally, surety bonds provide financial protection to promoters in case they are unable to fulfill their contractual obligations. For example, if the promoter is unable to deliver on the agreed-upon date and location for the event, the bond can provide compensation to the affected parties. Insurance and surety bonds are also important from a regulatory standpoint. Many states require that MMA events be insured and bonded, and failure to do so can result in fines or even legal action.
In conclusion, having the right insurance and surety bonds in place is crucial for MMA event promoters. Not only does it protect the fighters and promoter, but it also helps to ensure that the event is compliant with regulations and minimizes the risk of financial loss.
What types of insurance can comabt ATHLETES get?
The evolution of insurance for combat sports and mixed martial arts have changed rapidly. How did these policies originate? And what actually are the benefits of a combat sports insurance policy? Thanks to the efforts of mixed martial arts athlete Jeremy Augusta, combat sport athletes now have the opportunity to protect their greatest asset—their physical well-being.
