As a life coach, you accompany your clients on the amazing journey towards realizing their victories and transforming their challenges. Further, you get to tap into your newfound sense of listening while possibly transitioning into being your own boss. This path is not only a noble endeavor but is also equally rewarding.
Granted, giving people advice on how they can achieve their goals and better their lives doesn’t seem particularly dangerous or risky. Still, this pursuit can serve you a handful of punches.
That’s where insurance for life coaching business comes in. This specialty insurance product is meant to help life coaches manage the professional challenges they face.
Similar to consultants, there aren’t any federal or state requirements for life coaches. This doesn’t mean that you shouldn’t get life coach insurance.
Further, while you might assume that a sound contract could help with any potential legal conflicts, said contract doesn’t cover the costs arising from lawsuits or claims the way insurance for coaches and consultants could.
When you purchase insurance for coaching business, you effectively protect yourself and your practice from all claims raised by aggrieved third parties.
We’ll cover all the various types of insurance for coaches that you must consider, how much they cost, and some of the best providers offering life coaching insurance policies for your business.
Life Coach Liability Insurance
Even in a low-risk field, you are still held responsible for what you do and for what happens as a result of your business. When you purchase coaching liability insurance, you effectively cover your coaching business from anything that happens to anyone that comes into contact with your practice. This also includes claims that stem from how you conduct your business.
With general liability coverage, your practice is covered if a client claims they were injured while on your premises. Further, life coach liability insurance will be sufficient if you were to damage a client’s property during an in-house consultation.
This kind of business insurance for coaches caters to all legal fees arising from all third-party claims for bodily injury or property damage. Real-life situations where the general liability insurance steps in are when:
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A client claims you spilled a soft drink or coffee on their PC while at a consultation
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A client slips and falls while on the premises of your business
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A faulty electric wire within your establishment causes a fire that damages your neighbors’ property
A basic general liability policy for life coaches and career coaches covers medical expenses and provides reimbursement for losses. Note that this inclusion in personal coaching insurance will also cover copyright infringement, libel, or slander claims.
Some carriers will offer equipment insurance as part of their general liability insurance. This coaching consultant insurance will provide coverage if computers and other tools you use for life coaching services sustains damage due to:
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Electrical surge
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Electrical shorts
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Mechanical breakdown
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Operator error
Limits Of General Liability Insurance for Life Coaches
| Minimum Limit | |
|---|---|
| Third-party bodily injury and property damage coverage | $300,000-$2 million |
| Products and completed operations | $2 million |
| Advertising and personal injury coverage | $1 million |
| Rented premises liability coverage | $250,0000 |
Business Owner’s Policy for Life Coaches
If you are working with a tight budget, consider bundling your property coverage with general liability coverage. The new cover is referred to as Business Owners Policy (BOP) and is the most cost-effective way to get both these policies and business interruption insurance, which covers all arising costs if you are forced to close your doors temporarily.
Limits Of Business Owner’s Policy for Life Coaches
| Minimum Limit | |
|---|---|
| Per bodily injury and property damage coverage | $1 million per occurrence $2 million aggregate |
| Products and completed operations | $2 million |
| Advertising and personal injury coverage | $1 million |
| Rented premises liability coverage | $50,000 |
| Medical payments | $5,000 |
| Business personal property | $10,000 |
Professional Liability Insurance for Life Coaches
As a life coach, you are expected to maintain a level of professional standards. Unfortunately, there will be situations where you’ll be sued for negligently performing your duties, even when it was an innocent mistake. If the advice you offered caused harm or if you were to break the confidential clause in an agreement, you are likely going to be involved in a legal tussle.
If you have professional liability insurance for life coaches, you are more aptly able to respond to them.
Also called malpractice insurance for life coaches, this policy covers the legal expenses, settlements, and other costs when a claim is filed for negligence, inaccurate advice, violation of good faith, violation of fair dealing, and other issues with your work.
Limits Of Professional Liability Insurance for Life Coaches
| Amount | |
|---|---|
| Per occurrence limit | $250,000-$2 million |
| Aggregate limit | $250,000-$2 million |
| Coverage limit for punitive damages | $250,000 |
Get all the best quotes from leading providers in a click of a button!
Workers Compensation Insurance for Life Coaches
Most states require businesses to purchase a policy that’ll cover medical costs and lost wages. That way, if there are any work-related accidents, illnesses, or even death, the policy is expected to provide comprehensive coverage for employees.
You want to consult with the state about whether or not workers’ compensation insurance is mandated. This type of life coaching insurance will cover these costs if an employee sustains a work-related injury or disease:
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Medical treatment
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Hospitalization
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Medication
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Rehabilitation
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Lost wages
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Death benefits
Cyber Liability Insurance for Life Coaches
Further, suppose a threat actor hacks into your computer and accesses private and confidential information about clients.
This cyber event could take a significant toll on your practice, seeing as you have to cater to the costs of managing the threat and informing the client.
If you were to purchase cyber liability insurance, you are assured that the costs that arise from said cyber attacks and data breaches are covered.
Online Coaching Insurance
Offering your life coaching online provides you with ample opportunity to spread your knowledge to the masses. While you do not handle your clients in person, you are still exposed to various risks.
Now, suppose one of your students in a recent series of online classes applies the assertive lessons you’ve taught, and they, unfortunately, experience something bad. Further, what if, by accessing your online class or handling the lesson material, a student gets hacked, and they can trace the event from your end?
All of these represent reasons why you must invest in online coaching insurance. In the event of a negative outcome, your business is comprehensively covered hence saving you from paying all fees out of pocket. Further, for these online coaching sessions, you can have a cyber and data cover built into your insurance policy. The policy will help cover any costs arising from cyber liability, both first and third-party.
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Life Coach Insurance Cost
General liability insurance for life coaches cost $40 per month or $480 per year. This will have a $1 million per occurrence limit with a $2 million aggregate.
To get a better understanding of your rates, here’s a table showcasing both the monthly and annual premiums of the best life coach insurance companies in the market today:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $20.67 | $248.04 | Best overall; Fastest general liability insurance for life coaches |
| CoverWallet | $25.41 | $304.92 | Life coach insurance quotes comparison online |
| Tivly | $28 | $336 | Comparing life coach insurance quotes over the phone |
| Hiscox | $32 | $384 | Sole proprietors of life coaching firms who want multiple policies from a carrier with extensive experience in business insurance |
| Thimble | $38 | $456 | On-demand life coach insurance |
| International Coach Federation | $42 | $504 | Liability insurance for ICF members |
| LicenseCoach | $45 | $540 | Life coaches working with the pre-licensing provider |
| SimplyBusiness | $50 | $600 | Executive life coaches looking to bundle general liability insurance and professional liability insurance |
Cost Of Other Insurance for Life Coaches
You will pay $48.16 per month or $577.92 per year for a $1 million professional liability insurance for coaches.
Commercial property insurance will cost $45 per month or $540 a year for a $110,000 building coverage and $15,000 contents coverage.
Business owner’s policy will cost $41.03 per month or $492.36 per year. Inclusions are $1 million general liability insurance and $10,000 commercial property insurance.
Finally, you will pay $128 per month or $1,536 per year for a $1 million cyber liability insurance.
Get all the best quotes from leading providers in a click of a button!
Best Life Coach Insurance Companies
Here’s a breakdown of the best life coach insurance companies. Read to know their pros, cons, and rate for a $1 million general liability insurance.
NEXT Life Coach Insurance
Pros
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Best overall
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Get an online proof of insurance and send as a text message, email, or social media post
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Fastest general liability insurance
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Great customer service and reputation
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Outstanding value for money
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Bundle two or more life coach insurance policies and get a 10% discount
Cons
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Couldn’t find any
NEXT insures life coaches through its insurance program for adult education businesses. Policies you can avail are general liability insurance, workers compensation insurance, commercial property insurance, and professional liability insurance.
This company’s general liability insurance for life coaches has a $1 million per occurrence limit with a $2 million aggregate. You can upgrade to add terrorism coverage in the terms of general iability insurance.
Best for: Best overall; Fastest general liability insurance for life coaches
Average cost: $20.67 per month
Our rating: 10/10
CoverWallet Life Coach Insurance
Pros
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Compare life coach insurance quotes over the phone
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Get covered online
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Call anytime and cancel your policy
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Competitive rates
Cons
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Not an insurance company but an insurance broker
CoverWallet’s life coach insurance offers general liability, commercial property, workers compensation, and a business owner’s policy.
This company’s general liability insurance for life coaches has a $1 million per occurrence limit with a $2 million aggregate. The policy also has a $5,000 medical payments coverage, $2 million products and completed operations coverage, and $250,000 rented premises liability coverage.
Use CoverWallet’s online quotes comparison platform and compare life coach insurance quotes online.
Best for: Life coach insurance quotes comparison online
Average cost: $25.41 per month
Our rating: 10/10
Tivly Life Coach Insurance
Pros
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Compare life coach insurance quotes over the phone
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Responsive customer service
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Call and get covered online
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Can refer you to partners if it can’t provide coverage
Cons
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You need to call to get a quote
While Tivly (formerly CommercialInsurance.NET) doesn’t state that it covers life coaches, it has consultant insurance. Therefore, the company might provide coverage for your business since both are closely related fields. Policies you can avail from this company are general liability, workers’ compensation, commercial property, professional liability insurance, and more.
Call Tivly now to talk with a representative and compare life coach consultant insurance quotes over the phone.
Best for: Comparing life coach insurance quotes over the phone
Average cost: $28 per month
Our rating: 10/10
Hiscox Life Coach Insurance
Pros
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Hiscox has an easy online insurance application
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Prospective policyholders can purchase and manage their policies online
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Flexible coverage with room to make policy changes
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Policyholders can tailor their insurance for a custom insurance policy for your business
Cons
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BOP is unavailable in most states
If you are a sole proprietor or run a micro life coach business, you must consider working with Hiscox. This top-rated provider has an extensive understanding of the niche field, that is life coaching. This means that if you were to work with this carrier, you would be able to tailor your coverage for the specific risks your business faces. The life coach insurance from Hiscox will cost you, on average, $32 per month or $384 per year.
Best for: Sole proprietors of life coaching firms who want multiple policies from a carrier with extensive experience in business insurance
Average cost: $32 per month
Our rating: 9/10
Thimble Life Coach Insurance
Pros
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Policyholders can cancel their policy and get a refund at any time
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An unlimited number additional insureds can be added to the policy
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ACORD 25 certificates of insurance
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Quick to issue life coach insurance quotes
Cons
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Customer service is not available over the phone
If you are on the search for instant liability insurance, you must consider working with Thimble. This company has a career coach insurance program, which life coaches like you can also avail. Policies included are general liability, workers compensation, and commercial property insurance.
For general liability insurance with a $1 million per occurrence limit and a $250 minimum deductible, you will be required to pay $38 per month or $456 annually. Thimble’s general liability insurance covers business equipment. You also get the option of adding a client’s property in the terms of the policy.
Thimble offers a pay-when-you-play structure which means that you only pay for your life coach insurance when in practice. This on-demand model makes their policy affordable, especially for life coaches who only practice part-time.
Best for: On-demand life coach insurance
Average cost: $38 per month
Our rating: 8/10
SimplyBusiness Life Coach Insurance
Pros
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Tailored quotes in 7 minutes
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Professional indemnity insurance ranging between $50,000 and $5 million
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Online-based support available 24/7
Cons
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SimplyBusiness is an insurance broker
SimplyBusiness is an online broker that’s successfully worked with multiple top-rated insurance carriers. If you are in the market for comprehensive general liability and professional liability coverage, SimplyBusiness provides you the opportunity to bundle these for the price of one.
You can trust that your life coach business is in good hands, seeing as you’ll be joining the over 800,000 customers already working with the carrier. Other than the general liability and professional liability, you’ll also get employers’ liability insurance, business and office equipment insurance, legal expenses insurance, and personal accident insurance. SimplyBusiness’ website states that prices start at $50 per month, which translates to $600 annually.
Best for: Executive life coaches looking to bundle general liability insurance and professional liability insurance
Average cost: $50 per month
Our rating: 8/10
ICF Coaching Insurance
Pros
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Discounted insurance premiums for ICF members
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Coverage with a global reach
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Free access to the digital copy of your proof of insurance
Cons
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Coverage is limited to ICF members
International Coach Federation (ICF) insurance program for life coaches is the gold standard in the field. As the largest coaching body in the world, the institution offers accreditation to professional coach practitioners, making it a viable option when looking for liability insurance.
You can purchase an ICF liability insurance policy or work with recognized partners while still being assured of the highest possible policy quality. Given that each life insurance business is unique, ICF doesn’t offer blanket quote information, insisting instead that you provide pertinent information for a custom quote.
Best for: Liability insurance for ICF members
Average cost: $42 per month
Our rating: 7/10
License Coach Insurance
Pros
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Policyholders are assured of their security as License Coach uses a secure server to process all their transactions
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Flexible policy curated to meet specific business needs
Cons
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Customer support is only available between 7 am and 10 pm CST
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Limited information on the policy on the official website
While LicenseCoachTM is primarily known as an online insurance course training platform, it also offers specialty insurance products to life coaches.
Unfortunately, the body doesn’t provide information on the policy, with prospective policyholders being advised to get in touch to discuss the insurance.
Note that the insurance offered is meant explicitly for life coaches working towards their licensing exam.
Best for: Life coaches working with the pre-licensing provider
Average cost: $45 per month
Our rating: 6/10
