Life Coach Insurance: Cost, Coverage & Providers 2023

Frequently called errors & omissions (E&O), this coverage is essential for businesses that provide some form of advice because it covers the intangible liability of someone claiming your advice had a negative impact on their life or business. A life coach can be sued for negligence over their advice, for breaching confidentiality, or for giving bad career or investment advice.

If a manager hires you to help them develop a professional growth plan, and after following your advice instead of getting promoted they get fired, they could turn around and sue your business. Professional liability helps your business by handling legal defense, costs, and any resulting settlement or damages.

E&O insurance is a more narrow form of liability that doesn’t cover every scenario. Life coaches should consider general liability insurance to cover the broader exposures they have, and general liability covers three broad categories: third-party injuries, property damage, and advertising injury. This helps by handling medical bills, repairing or replacing the damaged property, and providing legal counsel and defense if the claim ends up going to court.

Some examples of a general liability claim are:

• A client tripping on a step as they enter your office
• A fire at your office that causes smoke damage to a neighboring shop
• Accidentally breaking a Ming Dynasty vase in a client’s office

The size of your business will impact whether this first-party coverage is necessary or not. If you own a property or rent an office and have furniture inside of it, then you will want to consider Most property policies have a blanket limit for all the property at one location and cover named perils like fire, vandalism, and theft. Endorsements are usually available and can cover events like equipment breakdown.

Coverage is usually limited to the listed location on the policy. If you have expensive equipment you take with you when visiting a client, then you‘ll want to review your policy and may need inland marine insurance. Inland marine is also a first-party coverage that protects equipment you move around.

If you need both general liability and property insurance, many providers will only provide a quote for a BOP. This policy is a combination of both liability and property and, when bundled, often results in some form of savings.

Cyber liability insurance not only covers the restoration of computers after a cyberattack or data breach but also your public relations (PR) and crisis response to protect your business’s reputation. Life coaches may keep files containing highly personal and confidential material related to their clients. If a cyberattack occurs, this could lead to a potential lawsuit from clients. Cyber liability may be available as an endorsement on a BOP or general liability policy.

Hiscox is very involved in the small business space. We received multiple life coach insurance quotes from Hiscox from a variety of brokers. One quote was for two policies: general liability and professional liability.

The general liability carried $1 million per occurrence and $2 million aggregate limits and cost $57.90 monthly. The professional liability was for a total limit of $1 million and cost $46.33 monthly. The option to purchase both or only one policy was available.

Hiscox is available in all 50 states and Washington, D.C.

If you are unsure of what coverages you may need, there is a 20-second quiz to help you. Online, you can get a quote, purchase your policy, manage it, and get a certificate of insurance (COI).

While Hiscox is only available from Monday thru Friday, 7 a.m. to 10 p.m. Eastern time, you can file a claim online 24/7. Once the claim is submitted, you’ll be provided with contact information for emergencies.

Hiscox has been offering insurance since 1901 and is a global corporation. It has a strong rating of A (Excellent) from AM Best.

Many providers view relationship coaches as borderline counseling, and the rates reflect the risk. However, Insurance Canopy’s rates for life coaches start at $21.08 monthly.

To get a quote, you’ll need to create an online account or sign in through your Facebook or Google account. From there, it is a matter of answering a few questions about your business and then a quote will be generated, allowing you to purchase the policy.

The general liability policy has limits of $1 million per occurrence with $2 million aggregate, while the professional liability carries a total limit of $1 million. Malpractice insurance is included in its policy. There is also $2,000 in coverage for equipment available.

Insurance Canopy offers products in all 50 states.

The policy for life coaches is through Fortegra, and complaints against Fortegra are well under the national average as measured by the National Association of Insurance Commissioners (NAIC).

The quote and purchase process is simple and fast. After the policy is purchased, you can manage it through an online dashboard. Here you can file a claim, add insureds to your policy, and get an instant COI.

Insurance Canopy is a broker that works with multiple providers. The life coach insurance policy is through Fortegra, which has an A- (Excellent) rating from AM Best.

The Hartford has every policy a life coach may need, including a BOP, general liability, and workers’ compensation. We were unable to get an online quote for professional liability, but we did receive one for a COP for $707 annually. This included $15,000 in property with a $1,000 deductible and liability limits of $1 million per occurrence and $2 million aggregate.

Right before finalizing a quote, The Hartford gives you four options to choose from: good, better, best, and custom. Good offers minimum coverage with offerings increasing at each level. Custom is completely customized, allowing you to select whatever coverage you need. We added data breach coverage to our quote.

The Hartford offers a range of limits on liability, from $500,000 to $4 million. It also offers a no-hammer clause, meaning the amount it pays out is limited by whether you approve of the settlement and coverage for pre- and post-judgment interest.

The Hartford is available in 48 states and Washington, D.C.

For your life coach business, you can get a quote online or through an agent. It has 24/7 claim services online and over the phone.

Customers are happy with The Hartford as complaints are lower than the national average.

The Hartford is more than 200 years old and insures more than 1 million small businesses. It has a rating of A+ (Superior) from AM Best.

Quoting takes minutes and allows you the option to go back and make any changes necessary to alter the coverage for the quote. We received a quote for professional liability for $1 million in total coverage with a $1,000 deductible. The price was $584 annually.

biBERK states that by eliminating brokers and agents (the intermediary), its policyholders can save up to 20% on insurance.

While not every coverage is available nationwide, biBERK’s professional liability is available in all 50 states and Washington, D.C.

biBERK is part of the Berkshire Hathaway Insurance Group, which has lower-than-average complaints.

If you purchase your policy through biBERK, all policy documents, including a COI, are available instantly. Through the online portal, you can manage the policy, get the necessary documents, and file a claim.

If you need to call, it is available Monday through Friday, from 7 a.m. to 9 p.m. ET.

The Berkshire Hathaway Insurance Group is a financially stable organization. AM Best rated it A++ (Superior).

We received two quotes from SimplyBusiness. One was for professional liability with $1 million in total coverage costing $566 while the other was for general liability with a limit of $1 million per occurrence and $2 million aggregate for $370.

The policies could be purchased together or separately, and there were additional options for a BOP. We had to call to answer a few questions to finalize those quotes.

SimplyBusiness works with top-rated carriers, such as CNA and Travelers, and offers insurance in all 50 states and Washington, D.C.

It works by providing quotes from multiple carriers and, if requested, for multiple coverages online. You can then purchase the policy and manage it online. You can get a COI, but some require up to 24 hours to process.

If you have a claim, you will need to contact the carrier directly. It does provide the contact information for its partners.

The quotes we received were from Hiscox, an A- Excellent carrier. SimplyBusiness is owned by Travelers, which has a rating of A++ (Superior).