Insurance for life coaches
In this day and age, knowing how to “live your best life” can be challenging – with millions of self-help books, healthy living blogs and a rapidly growing number of lifestyle influencers, it’s easy to feel stuck in a paradox of choice. And this is where life coaches help.
Life coaches can help to provide clarity in individual goals, identify specific obstacles, and create a plan for personal success. While some life coaches take a more holistic approach, many specialize in helping people in specific areas, e.g. for relationships, financial advice, or addiction.
As a life coach, people rely on your expertise for various reasons, and they look to you to improve some aspect of their life. Whether you offer coaching within a niche or have a broad focus, there is always a risk to providing professional advice.
At Zensurance, we know your business is unique in its offerings. It’s our mission to make insurance as accessible as possible, so we wrote this guide to help you navigate the basics of insurance for life coaches.
What is life coach insurance?
When you’re a life coach, you could be held liable for almost any negative impact your services have on your clients. As there are various specialties found within coaching, different factors, such as industry and location, must be considered to find the perfect coverage for you.
Life coach insurance is a policy package designed to accommodate the full range of wellness consulting services and protect against specific risks associated with them, such as negligence, errors, omissions, or third-party damages.
What does it cover?
A comprehensive policy for your life coaching business should cover the risks you are most likely to face. Those risks will vary by service, industry, and product; however, the following coverages apply to most coaches:
- Professional Liability Insurance: Also known as Errors and Omissions Insurance, Professional Liability Insurance protects life coaches against client claims alleging financial loss due to a service you provided, as well as lawsuits alleging negligence, misconduct, and failure to deliver services as promised. For example, if you’re coaching someone on changing eating behaviours to lose weight and suggested they’ll see a guaranteed difference that doesn’t end up happening, your client could sue.
- Commercial General Liability Insurance (CGL): Whether you work from home or have an office, mistakes can happen anywhere. Commercial General Liability Insurance can protect life coaches against common claims or lawsuits alleging third-party bodily injury (e.g., slip-and-fall), property damage, false advertising, and libel/slander. For example, if you’re conducting a discovery session in your office with a client, and your client’s chair suddenly breaks, causing them to injure their back. Should you be sued, CGL may cover legal defence costs and medical costs, regardless of the lawsuit’s outcome.
- Commercial Property Insurance: Commercial Property Insurance protects your business location and the property inside from an insured event, such as a fire or theft. For example, suppose your office experienced water damage from a burst pipe and destroyed your extensive collection of self-help books. In that case, Commercial Property Insurance could cover the cost to replace your books. Your Commercial Property Insurance policies often include business interruption (a.k.a. business income) coverage, which provides reimbursement for net income lost following an insured event.
- Cyber Liability Insurance: Cybercrime is, unfortunately, becoming increasingly common, making it challenging for business owners to protect their technology systems and data. Cyber Liability Insurance is a policy that covers the costs associated with cyberattacks, such as loss of income, notification costs, or data infrastructure repair. For example, you’re a cyberattack victim and lose all of your confidential online client health records. In that case, Cyber Liability Insurance can cover the cost to recover the destroyed files.
How much does it cost?
Every business is unique, and insurance requirements will vary by size and industry. However, life coaches can anticipate premiums starting from $315 annually for a Professional Liability Insurance policy with a $500K limit.
If you require additional Commercial General Liability Insurance, the costs usually start at $250/year for a $1MM coverage limit.
When you fill out our online application, specific questions will be asked about your business to understand your requirements better. The following factors are taken into consideration when determining the best policy options for your practice:
- Years of Experience
- Number of Employees
- Claims History
- Types of Professional Services
- Annual and Projected Gross Revenue
We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.
Who needs it?
Any individual or business providing professional coaching services should protect their business with a life coach insurance policy. If a client determines your advice or service was less than satisfactory or resulted in a financial loss to them, they may take legal action.
We’ve insured life coaches practicing in a range of sectors, including:
- Business Coaching
- Career Advisor
- Executive Coach
- Mental Health Counsellor
- Substance Abuse Counsellor
- Wellness Coach
Common claims scenarios
Frequently asked questions