Insurer Ordered To Defend Tae Kwon Do Club Against Student’s Injury Claim

Tien Lung Taekwon-Do Club v Lloyd's Underwriters, 2015 ABCA 46

Here, an insurer attempted to deny coverage to a business for an injury claim made by a student hurt at a martial arts club.

A club user was injured by an instructor during black belt training. The club user brought an action against the instructor and the martial arts club for his injuries.

The martial arts club had purchased liability insurance from Lloyd's Underwriters and put its insurer on notice. However, the insurer denied coverage to the club based on a standard exclusion clause for injuries sustained in combat sports, including "Martial Arts". The clause read as follows:

"Any Bodily Injury caused or contributed by any Insured to any participant and/or any Bodily Injury caused or contributed by any participant in a match or practice in regards to Category 4 Sports unless specified in the Declarations."

Despite the business being described on the declarations page of the general liability insurance policy as being a martial arts club, the insurer maintained its denial of coverage.

The club brought an action against its insurer.

The Chambers judge ruled that ambiguity in...