General Liability Insurance For Life Coaches
All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.
Check out our review of the Best Small Insurance Companies.
Common Situations That General Liability Insurance May Cover For A Life Coach
Example 1: A client visiting your office trips on the steps while entering and suffers a bad fall. General liability insurance would likely cover any injuries they sustained.
Example 2: You’re unable to deliver on promises made in marketing materials, and a client sues for false advertising. General liability insurance would likely cover the lawsuit.
Example 3: General liability insurance may be required to reserve spaces at tradeshows or for teaching classes.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.
Learn more about the risks covered by general liability insurance.
Cost Of General Liability Insurance
The average life coach in America spends between $350-$650 per year for $1 million in general liability coverage.
Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Other Types Of Coverage Life Coaches Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all life coache should obtain:
Professional Liability Insurance
Professional liability insurance helps protect workers who give advice as part of their job. This insurance covers lawsuits that clients might file if they find advice misguided or faulty.
As a life coach, your entire business centers around the expertise you have and advice you give. You likely make big promises, and big promises often come with big potential liabilities. Make sure the professional liability insurance you select has broad coverage definitions and high limits so that you’re well protected.
Professional liability insurance can be purchased by itself or with other coverage in a package policy.
Home-Based Business Insurance
Many life coaches have a home office and therefore need home-based business insurance. This is an insurance that fills in gaps left by homeowner’s insurance policies, which frequently don’t cover accidents related to business activities.
Home-based business insurance is sometimes available through a business owner’s policy (BOP) or as an endorsement on a homeowner’s insurance policy.
Data Breach Insurance
Assuming you offer some life coaching services online (even if only to email clients occasionally), data breach insurance is an important protection to consider. Should confidential information about clients be leaked, the resulting consequences could be significant and potential lawsuits might be expensive. This insurance covers many types of possible data breaches and associated legal fees.
Data breach insurance can be purchased by itself or with other coverage in a package policy.
Types Of Coverage Some Life Coaches May Need
In addition to the policies outlined above, there are a few other types of coverage your life coaches may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Commercial Property Insurance
If you own an office space or meeting area, your business should have commercial property insurance. Property coverage typically insures buildings, other commercial spaces, and equipment that businesses own.
Commercial property insurance can be acquired with other coverage in a BOP.
Commercial Auto Insurance
If you use a vehicle for work-related driving, regardless of whether it’s registered as a personal or commercial vehicle, you should have some form of commercial auto insurance. Vehicles driven on public roads need to be insured, and those that are used for business typically require commercial coverage.
Commercial auto insurance can be purchased by itself or with other coverage in a package policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.
With this in mind, here are several things you can do to better protect your business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
- If your business is an LLC, look into LLC Insurance.
Steps After Getting Business Insurance
Depending on where you are in your business building process, here are some other actions you may need to take before getting started:
- If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
- After finding the perfect name, get a logo with our Logo Generator.
- Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.
Business Insurance is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
FREQUENTLY ASKED QUESTIONS
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a business?
You should invest in insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my business from everything?
Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.