Life coach insurance is professional liability coverage, or additional coverages, that protects your business from losses by helping provide defense and settlement of the claim. As a professional who offers advice as a service, professional liability insurance is the most important—but not the only—coverage to consider. A business owner’s policy (BOP) offers additional protection for your property and other forms of liability not found in professional liability. Costs for these combined policies can range from $1,735 to $4,100 annually.
Life coaches looking for affordable coverage without sacrificing quality can compare quotes through Simply Business. This small business broker specializes in tailored policies to fit your business and can have a quote available in minutes.
Who Needs Life Coach Insurance
Any life coach working with clients to assist them in changing habits, reaching goals, and overcoming obstacles needs to consider life coach insurance. If a client has problems after following your advice on leadership, career, spirituality, wellness, relationships, or other topics—especially if they claim your advice led to some sort of financial loss—they could sue your business.
Average Life Coach Insurance Costs
These estimates are taken from multiple quotes obtained while researching this article. The coverages listed would be the most important ones for a life coach.
Policy | Estimated Annual Premium | Coverage Amount | Deductible |
|---|---|---|---|
Professional Liability | $580 to $1,150 | $1 million total coverage | $500 per occurrence |
General Liability | $350 to $700 | $1 million per occurrence and $2 million aggregate | None |
BOP | $485 to $850 | $1 million per occurrence and $2 million aggregate liability with $15,000 in property coverage | $500 for property losses |
Cyber Liability | $320 to $1,400 | $1 million total limit | Varies from $0 to $2,500 |
While you would only need workers’ compensation insurance if your business has enough employees to satisfy the state requirement, we think it would still be helpful to have an understanding of how the premium is figured. Workers’ compensation cost is calculated using a formula that includes your industry, claims history, and the number of employees, so the price can vary significantly even within the same industry.
When calculating the cost of insurance for life coaches, providers consider a number of factors like risk, location, and revenue. Additional considerations are:
- Claims history: Insurers typically ask for the last three to five years of claims history.
- Number of employees: Having more employees increases the risk for your business, and depending on location, you will probably need workers’ compensation insurance. A solopreneur carries less risk than a life coaching firm with multiple employees.
- Services provided: Health and wellness coaching services can increase your premium, but so can other types of coaching, like career advice.
- Property value: Insuring a free-standing building will cost more than mobile business equipment.
- Financial advice: The type of advice offered, and whether you provide any financial advice—investment or otherwise—will be taken into consideration.
- Mental health: Insurers will want to know if your coaching touches on substance abuse or other mental health topics.
- Location: The location of your business, say California or Ohio, will impact the cost of the premium. Additionally, if your business operates across state lines will be taken into consideration when determining the premium.
Premiums aren’t necessarily fixed. There are ways to save money on business insurance.
Common Life Coach Insurance Policies
Type of Insurance | What It Covers |
|---|---|
Professional Liability | Legal costs from lawsuits over professional errors, omissions, and negligence |
General Liability | Bodily injury or property damage claims by third parties |
Commercial Property | Business-owned property and equipment |
BOP | General liability, commercial property and, usually, coverage for loss of business income |
Cyber Liability | Costs from cyberattacks and data breaches |
Some providers call professional liability errors & omissions (E&O) insurance. This is essential for businesses whose service is advice because it covers the intangible liability of someone claiming your advice had a negative impact on their life or business. As a life coach, professional liability is the most important coverage you can purchase because a life coach can be sued for negligence over their advice, for breaching confidentiality, or for giving bad career or investment advice.
Let’s say 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 narrower form of liability that doesn’t cover every scenario. So, life coaches should also consider general liability insurance to cover the broader exposures they have. 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
Life coaches should consider general liability if they maintain some sort of physical office space visited regularly by clients.
Many providers will offer a general liability policy that includes professional liability with its own separate limits. If you need both policies, see if this option is available, as it is usually cheaper than purchasing each policy separately.
The size of your business will impact whether this first-party coverage is necessary or not. While this policy is probably unnecessary for many life coaching businesses, if you do own property or rent an office and have furniture inside of it, then you may need commercial property insurance.
Most property policies have a blanket limit for all of the property at one location and cover named perils like fire, vandalism, and theft. Insurance 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 will want to review your policy and may need inland marine insurance, which is also a first-party coverage that protects equipment you move around.
Depending on the size of your life coach business and your assets, you may want to consider a BOP. It is a combination of both liability and property and, usually, will include lost business income coverage, too.
There are several advantages to purchasing a BOP over the separate policies. The first is that when these coverages are bundled together, it usually results in some savings. The next is convenience—you have one policy for multiple coverages with the same company.
Learn more about the differences between a BOP vs general liability insurance.
Cyber liability insurance not only covers the restoration of computers after a cyberattack or data breach but also your public relations and crisis response to protect your business’ 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.
This is a coverage that isn’t always necessary to purchase as a standalone policy. Cyber liability may be available as an endorsement on a BOP or general liability policy.
Best Life Coach Insurance Companies
In evaluating insurance for life coaches, we considered whether professional liability was available, what type of coaching they insured, and the support services for claims, billing, and policy documents. Here are the best life coach insurance companies:
- Simply Business: Best overall for life coach insurance
- Hiscox: Best for home-based life coaches
- Insurance Canopy: Best for marriage and relationship coaches
- The Hartford: Best for professional liability
- biBERK: Best for fast quotes
Simply Business: Best Overall for Life Coach Insurance
Simply Business, an online broker offering quick comparisons among multiple providers, is the overall best insurance company for life coaches. One of its advantages is, it allows you to get a quote online or over the phone in just minutes. It will provide multiple quotes that you can compare and even adjust limits and coverages online, with the premium updating in real-time.
While it is a great option for comparing costs and finding the right policy at the right price for your business, one downside is that as a broker, it can make some modifications to your policy—but some things will take time. It also doesn’t handle any claims directly. If you prefer to work with one company for the duration of the policy, then you’ll want to consider an insurer like Hiscox or The Hartford. If you want to learn more about the broker, however, read our review of Simply Business.
We received two quotes from Simply Business. 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. For all of these quotes, to finalize the purchase we would need to call to answer a few more questions.
Simply Business works with top-rated carriers, like CNA and Travelers, and offers insurance in all 50 states and D.C. It is open Monday through Friday from 8 a.m. to 8 p.m. EST. Helpfully, it also updates hours when holidays are coming up, so you know when it will be open or closed.
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 usually get a certificate of insurance (COI) online instantly, but some requests do 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. Simply Business is owned by Travelers, and AM Best’s rating of Travelers is an A++ (Superior).
Get a Quote from Simply Business
Hiscox: for Home-based Life Coach Insurance
Small business insurer Hiscox is a great option for home-based life coach businesses. This is because if your business is home-based, it will offer limits appropriate to the risk and sometimes provide a discount for home-based businesses. It offers professional liability, along with property and general liability, for life coaches. The policy comes with flexible coverage that fits your business, and you can get a quote online in minutes.
The provider, which you can learn more about through our review of Hiscox, is slowly adding coverages for small businesses. It recently started to sell workers’ compensation. However, as a dedicated provider, it will only offer one quote for itself. If you prefer to compare prices from different companies simultaneously when shopping, then check out the broker Simply Business.
As a dedicated small business insurer, 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:
- General liability carried $1 million per occurrence and $2 million aggregate limits and cost $57.90 monthly.
- Professional liability was for a total limit of $1 million and cost $46.33 monthly.
The option to purchase both or only one was available. You can purchase the insurance online or call and speak with a representative before buying. Helpfully, Hiscox is regularly available for same-day coverage.
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 COI.
While Hiscox is only available from Monday through 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.
While Hiscox is relatively new to the small business space, it maintains a healthy financial position. Hiscox received an AM Best rating of A (Excellent).
Insurance Canopy: Best for Marriage & Relationship Coaches
Online broker Insurance Canopy is the best provider for marriage and relationship coaches. Its purchase system is simple, and it offers the key policies a life coach business needs. It is also an excellent option for finding affordable insurance. It offers general liability, professional liability, cyber liability, and equipment coverage with an appetite for relationship coaches.
The broker works with one provider, and while you have options for which coverage you wish to add to your policy package, you cannot compare quotes. It lets you manage your policy online, but the claim will be handled by the actual provider. So, if you like being able to manage your policy and only have one point of contact, then consider Hiscox. It has great online options for managing your account and handles claims directly.
Many providers view relationship coaches as borderline counseling, and the rates reflect the risk. However, Insurance Canopy’s rates for life coaches start at just $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, and AM Best rated Fortegra an A- (Excellent).
Get a Quote from Insurance Canopy
The Hartford: Best for Professional Liability
The most important coverage for life coaches is professional liability. As one of our best professional liability insurance companies, it should be no surprise that The Hartford offers professional liability for a wide range of categories that can function as life coaches. These include consultants, business coaches, and career coaches.
The professional liability of The Hartford can be customized to meet your business needs. It is the only insurer listed in this guide that maintains a 24/7 claims call center for its customers and has every policy a life coach may need—including a BOP, general liability, and workers’ compensation. You can see if it fits the bill by reading our review of The Hartford.
However, if you are looking for an affordable way to purchase life coach insurance online, then Insurance Canopy is a great option. Simply Business is also a great choice if you are looking to compare prices.
We were unable to get an online quote for professional liability, but just because we couldn’t get one doesn’t mean your business wouldn’t be able to do so. You can also always call and speak with an agent to get a quote.
We did, however, receive a quote for a BOP 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, while 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. The Hartford also provides excellent online account access for customers where you can file a claim or create an instant COI.
Customers are happy with The Hartford, as complaints are lower than the national average. The Hartford publishes customer reviews for how it handles claims for all lines of business and the reviews are all overwhelmingly positive. For example, there are around 840 reviews for general liability[1] and about 25 reviews for professional liability[2] and both have the same average of 4.8 out of 5 stars.
The Hartford is more than 200 years old and insures more than 1 million small businesses. The Hartford’s AM Best rating is A+ (Superior).
biBERK: Best for Fast Quotes
Sometimes, you need insurance fast, and biBERK can give you a quote for professional liability with an online purchasing option in minutes. Its quoting process for life coaches is simple and quick. Usually, when it generates a quote, it will give you several options for coverage with different limits and types of insurance, giving you some freedom as with a brokerage to purchase insurance.
biBERK works like a provider in that it is a one-stop shop for customer service and claims. However, its coverages outside of professional liability are limited both in what it sells and geographically. If you want something that is available nationwide and has a wide range of options, check out The Hartford or Simply Business.
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, which biBERK is a part of, is a financially stable organization. AM Best rated Berkshire Hathaway an A++ (Superior).
How We Evaluated the Best Insurance for Life Coaches
We determined which insurance companies would be the best for your life coaching business through our in-house proprietary evaluation system. In our evaluation, we focused on the customer’s needs. We also paid particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder for a specific provider.
Frequently Asked Questions (FAQs)
Life coaching insurance is a policy, or several policies, that protects a life coach business from financial harm caused by claims. The claims can be liability claims of negligence by the business or first-party claims of damage to business-owned property. The most important policy for a life coach is professional liability insurance.
Because a life coach provides important advice to individuals or corporations, which can influence significant decisions, the job brings inherent risks. It is important to ensure the life coach is protected in case the advice results in harm, especially financial harm to their clients.
From the quotes we received, the cost of professional liability for life coaches runs from $580 to $1,150 annually. These carried a limit of $1 million with a deductible of $500 per occurrence.
A deductible is the amount the policyholder agrees to pay when a claim is filed. If the claim is covered, the insurer will pay the remaining amount up to the limit of the policy. Policyholders can usually lower or raise the deductible. While general liability does not carry a deductible, professional liability does. It is important to understand your responsibility with a deductible when considering the amount of the deductible.
Bottom Line
Because of the important role a life coach can play in the life of a person or the trajectory of a company, they face potential lawsuits from dissatisfied clients and the risk of loss due to an accident that injures others or damages property. Life coach insurance helps protect the business by handling the costs of investigating and resolving claims.
By purchasing professional liability or a BOP from Simply Business, life coaches can better focus on helping their clients achieve their goals while also saving money by comparing quotes.
User review references:
[1]The Hartford | general liability
[2]The Hartford | professional liability
