Life Coach Insurance

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.