About General Liability Insurance

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 (or CGL).

Some of the risks CGL 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 CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.


Learn more about the risks covered by general liability insurance.

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.

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 CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • 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.

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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 three 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) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.