What Health Coaches Need to Know About Liability Insurance

As a health coach, you invest countless hours into building a business that reflects your values and supports your clients’ well-being. It’s essential to protect that work—and yourself—with appropriate liability or “health coach insurance.”

At FMCA, we strongly encourage our health coaches to carry liability insurance. It’s an important part of a professional coaching practice and can help safeguard your business and your finances in the event of unexpected legal claims. Insurance isn’t just about risk management; it’s a way to support both coach and client in a relationship built on trust and professionalism. 

To learn how liability insurance works and what type of coverage may be right for your practice, keep reading.

Disclaimer: This article is for educational purposes only and is not intended as legal or insurance advice. For guidelines specific to your situation, consult a qualified attorney or insurance professional.

What is Liability Insurance, and Why Do Health Coaches Need It?

Coaching is deeply personal work. Clear contracts, intentional communication, and strong professional boundaries go a long way, but when you’re working with clients around sensitive health goals, there’s always some risk. Misunderstandings, unmet expectations, or dissatisfaction can arise, and in some cases, they may lead to legal action.

With liability insurance in place, you can stay focused on your work, knowing you’re legally and financially supported if a claim arises. It also signals to your clients that you take your role seriously and operate with high professional and ethical standards.

There are many types of liability insurance, including commercial, auto, and product liability insurance, but for the majority of health coaches, two types matter most: Professional Liability Insurance (PLI) and General Liability Insurance (GLI).

• Professional Liability Insurance (PLI)*, also known as Errors and Omissions (E&O) Insurance, covers claims related to the professional services or advice you provide. This includes accusations of misinformation, negligence, or harm caused by your recommendations.
• General Liability Insurance (GLI) covers claims of bodily injury, property damage, or accidents that occur during in-person sessions or events.

*Professional liability insurance is sometimes confused with malpractice insurance, but the two are not the same. Malpractice insurance applies to licensed medical providers. Most health coaches need professional liability coverage tailored to their scope of practice.

Understanding the importance of coverage is the first step in protecting your practice. Next, we’ll explore how to choose the right insurance policy for your needs.

Types of Liability Insurance for Health Coaches

Here’s a breakdown of the most common types of liability insurance that health coaches might consider, depending on the setup of their practice:

TYPE OF INSURANCE	WHAT IT COVERS	BEST FOR
Professional Liability Insurance (PLI)	Covers claims related to the professional services or advice you provide, including claims of negligence, misinformation, or failure to deliver promised results	All coaches; especially important for virtual and one-on-one coaching practices
General Liability Insurance (GLI)	Covers claims of bodily injury, property damage, and accidents that happen on your premises (e.g., at a gym, during in-person meetings)	Particularly useful if you meet clients in a shared office or studio, or if you run group sessions
Cyber Liability Insurance	Covers data breaches, cyberattacks, or loss of sensitive client information	Not required for most coaches, but good to know about if you offer online coaching, use client portals, or store sensitive client data
Business Owner’s Policy (BOP)	A bundled policy that includes liability insurance and property coverage	Most relevant for coaches who see clients at a physical office location
Workers’ Compensation	Helps with costs related to workplace injuries or illnesses	Required if you have employees or hire contractors

Your ideal policy mix depends on how and where you work, as well as whether you work alone or as part of a team. Next, we’ll look at where to find coverage and what it typically costs.

Note on HIPAA: While liability insurance can help protect you financially in case of legal claims, it doesn’t automatically make you HIPAA-compliant. If you work with protected health information (PHI), especially in partnership with licensed providers, you may also need to consider your HIPAA responsibilities and ensure that your systems and processes are secure.

Who Offers Liability Insurance, and What Does It Cost?

Finding the right insurance provider depends on where you live, how you practice, and the kind of coverage you decide you need. We’ve compiled a non-exhaustive list of companies that FMCA health coaching students have successfully used to obtain liability insurance coverage. FMCA does not have relationships or affiliations with any insurance or brokerage company—think of this list as a helpful starting point, not an endorsement.

Premiums vary widely by provider and policy type and may range from $150 to $400+ USD per year for basic professional liability insurance (coaches can usually deduct the cost of premiums from their tax bill). Some providers offer bundled coverage that includes both general and professional liability, while others allow you to customize your plan based on your coaching model—whether you’re virtual, in-person, or both; lead individual or group sessions; operate solely as a coach or in combination with other credentials, etc.

As you research providers, consider what best aligns with your practice, budget, and risk profile. Choosing the right insurance is not just about cost—it’s about creating a secure foundation for your business and peace of mind for you and your clients.

How to Choose the Right Liability Insurance Policy

Once you understand what type of coverage you need, the next step is selecting a policy that fits your practice. Not all insurance marketed to wellness professionals is appropriate for health coaching, so it’s worth reading the details carefully. 

When evaluating a potential liability insurance policy:

1. Make sure the policy is intended to cover health coaches specifically. If it’s recognized by your training organization or certifying body like NBHWC, that’s usually a good sign it aligns with health coaches’ needs.
   
2. Confirm that it supports the way you work, especially if you coach online, lead group sessions or retreats, see clients internationally, or combine coaching with another health and wellness role. Keep in mind that health coaches are held to the legal and ethical obligations of their highest license, so if you carry liability insurance for another role, make sure your coaching is also covered.
   
3. Check the policy’s coverage limits, exclusions, and premiums, and make sure it suits your needs and risk tolerance.
   
4. Note whether the policy is occurrence-based or claims-made. Occurrence-based policies cover incidents that happen while you’re insured, even if the claim is filed later. Claims-made policies only cover claims filed while the policy is active, which can affect your protection if you switch providers or cancel your policy.

The right policy should reflect your actual services, offer peace of mind, and be easy to maintain as your practice evolves.

What Happens When I File A Claim?

If a client brings a claim against you, your first step is to notify your insurer as soon as possible via their claims filing process. Prompt communication is key—delays could impact your coverage. It also helps to have detailed records on hand, including session notes, client agreements, and communication logs. Documentation can play an important role in your defense.

Once your claim is filed, the insurance company typically assigns a legal team to your case. They’ll investigate the situation, manage communications with the other party, and represent you in court if necessary. Your policy should also cover the cost of legal fees, settlements, or judgments up to the limits of your policy.

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Bringing It All Together

Liability insurance may not be the most exciting part of your work as a health coach, but it’s important. It helps protect your practice, finances, and reputation—no matter how or where you work with clients. Whether you’re just starting your coaching journey or you’ve got years of experience, securing the right coverage shows that you take your role seriously and are committed to building a sustainable professional coaching business for the long term.