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Do Life Coaches Need Insurance?

If you enjoy helping people reach their highest selves and achieve their goals, you may be interested in the life coaching field. Life coaches are not therapists, and they do not focus on the past. Instead, they focus on helping their clients create actionable steps to reach their goals. Life coaching is a flexible career, but it still requires insurance.

Do Life Coaches Need Insurance?

While life coaches do not have to be licensed, they should be insured. Licenses and insurance are two different things. A license is usually a certification that recognizes someone’s expertise in a given field. It usually requires coursework created by industry experts. Insurance provides financial protection against claims. Insurance isn’t a requirement, but it can be quite helpful despite that.

In general, life coaching isn’t a dangerous profession, but some situations can benefit from having insurance. Because you are coaching others and encouraging them to take control of their lives, somebody who is unhappy with the results of their newfound boldness could consider suing their life coach for financial compensation.

That is one example of why a life coach can benefit from insurance. Another example would be if a life coach failed to address a client’s mental health needs or did not understand the severity of them. This would be unfortunate for any life coach to have to experience, but it could be a reality because of the limited time you spend with your clients. Despite it being an honest mistake, a client could seek financial compensation for the error.

The best type of insurance for a life coach to get is personal liability insurance because it will protect against these types of claims. You may also choose to invest in business personal property coverage and data security coverage, as well as general liability coverage. This bundle of coverage will protect you from almost any situation.