If you have or plan to start a life coaching business, you may be worried about covering the costs associated with liability claims and property damage. Do I have to pay out-of-pocket for legal claims and costly damages? Does insurance cover life coaching? These are some of the questions that might be troubling you.
The truth is that insurance will cover your life coaching business. Appropriate insurance will provide financial protection against costly liability, property damage, and other claims arising from running your life coaching business.
This article will highlight different types of life coaching insurance covers and explain the difference between life coaching and therapy. Read on to learn more.
What is life coaching insurance?
Life coaching insurance is a type of insurance coverage that provides financial protection to life coaching businesses. The insurance covers a life coaching business against costly financial loss due to liabilities, injuries, lawsuits, and other claims it might be subjected to. Basic coaching insurance covers both general and professional liabilities.
Does insurance cover life coaches?
Yes. Life coaches are covered by insurance. They take insurance to protect their businesses against any risk that may lead to general and professional liability claims or lawsuits. Remember that life coaches insurance typically covers the costs associated with property damage, common accidents resulting from third-party injuries, data breaches, and online attacks. It also helps pay judgments, settlements, and legal defense fees associated with covered claims.
Types of life coach insurance (Who requires life coach insurance?)
There are five common types of life coaching insurance that life coaches should take to protect their businesses:
1. General liability insurance
The life coach insurance policy protects life couches against lawsuits and mishaps that might result from injuries or accidents occurring within a facility. For instance, liability insurance for life coaches will compensate clients if they slip on a slippery floor and get injured. The client can make claims against personal injury or property damage.
2. Professional liabilities
A professional liability insurance policy protects a life coaching business against negligence claims or errors that occur while offering life coaching services. Life coaches can be sued for giving bad advice that causes harm to a client, breaching confidentiality and privacy agreement, or harassing a client. Professional liability insurance will cover the cost of legal representation and settlement the client might be awarded.
3. Worker’s compensation insurance
Another common type of insurance for life coaches is worker’s compensation insurance. This policy protects a life coaching business and its employees from work-related injuries and accidents that cause illness, injuries, or deaths. Worker’s compensation insurance typically covers both lost wages and medical costs.
4. Commercial property and auto insurance
This insurance policy protects any property within a life coaching facility, including electronics, furniture, equipment, and office buildings used in offering life coaching services. The auto insurance policy covers all vehicles used within the facility. This policy will cover the costs incurred in case of fire, theft, or accident.
5. Online liability insurance
A life coaching business, just like other businesses, is at risk from cyber security threats. Online liability insurance, also called cyber liability insurance, protects life coaching businesses in the event of online attacks. These attacks may include data breaches, cyber-attacks, and email phishing.
Is life coaching covered by insurance?
Yes. Life coaching is covered services by insurance. The insurance will cover costs associated with liability claims and property damage depending on the life coach’s policy options. However, health insurance does not cover life coaching services.
Is life coaching the same as therapy?
No. Life coaching and therapy are two different services. The table below will help you understand the major differences between these two popular services.
| Life Coaching | Therapy |
| Life coaching helps clients achieve their desires or objectives. | Therapy helps clients overcome stressors or symptoms that prevent them from living healthy life. |
| Life coaching is focused on the client’s present situation and future goals. | Therapy focuses on the history of the situation. It explores one’s past. |
| Life coaching involves sporadic sessions. The length or frequency of the services varies depending on the goals, desires, or objectives a client wants to achieve. | Therapy involves routine weekly sessions that try to stabilize the patient. The patients also benefit from the insights shared during the sessions. The length of therapy treatment varies by client and may last for weeks, months, or years. |
| Health insurance does not cover life coaching services. | Therapy services are covered by insurance. |
| Life coaching business does not require any state or federal licenses. | Starting a therapy business in most states in the United States of America requires both federal and state licenses. |
| Life coaching sessions can occur virtually through video or by phone. | Therapy in-person sessions due to the sensitive nature of the treatment. |
