Coaching is not a regulated profession in most parts of the world so many coaches assume they do not need professional liability insurance but that is not necessarily true. For Therapist-Coaches, the question is a bit easier to answer and the answer is generally, “Yes.” If you are a Therapist-Coach and you continue to practice in the mental health field, you can usually add coaching to your existing professional liability insurance that you carry for your mental health services.
We offered a short explanation in a our Legal Briefs column of TILT Magazine a few issues back: Coaching and Liability.
If you are not a Therapist-Coach and you offer services as a professional coach, you should consider professional insurance as well.
Wiki.Answers.com post is an excellent reflection on the topic:
Short answer: Yes, life coaches need liability insurance.
Longer answer: Because there is no such thing as a State Licensed Life Coach, one could well argue that the coaches liability INCREASES. (The coach would not be able to use the state licensing board to deflect accusations of wrong-doing/neglect/incompetence.) At a mimimum, a business owners’ liability insurance policy should be in effect to cover the coaches business of life lesson consultancy. An additional personal liability policy would not be a bad idea too.
The client could turn out to be in need of a real mental health professional – a shrink – and this is way above an beyond the scope of the services provided by a life coach. The client may well turn around and seek damages/restitution from the coach. The insurance to cover the liability is far, far cheaper and much quicker than being dragged into court. (Even a lawsuit that is eventually proven to be without merrit can take YEARS to discharge.)
We have created this list of insurance coverage options. Coverage is inexpensive and while you may never have to utilize it, you can rest a bit easier as you build your practice and sharpen your professional skills...
Options for Professional Liability Insurance.
Energy Medicine Professional Insurance through Online Therapy Institute
United Kingdom & Europe,