A career coach guides clients to get the right education and excel in their field. A career coach is a great help for those looking to take their career to the next level. A good coach will have experience in the client's field and know what it takes to succeed. They will work with clients on identifying career goals, building an action plan, networking, and more.
Since the nature of the job involves working with clients daily, they are at risk of being sued by their clients. A good insurance policy protects a career coach in case of a claim or lawsuit.
Risks and Liabilities
Career coaches are not immune to risk, they could easily be sued by a client for a variety of reasons.
A career coach cannot see the future or change a client's behavior and personality. They cannot guarantee their clients will achieve their goals. Some clients may feel misled and be disappointed they don't get specific results. When these results don’t materialize, the client may file a lawsuit against the career coach for negligence.
- The career coach may also be liable for their advice or guidance. For example, if a client is fired from their job while following the advice of the career coach, this could be grounds for a client to sue.
- The career coach may also be liable if they encourage their client to lie on a resume or during an interview. If the client is later called out for the lie, it could cost them their job and future employment opportunities.
- A client may not get the results they were hoping for. Suppose a client seeks help with their resume or cover letter but does not receive any coaching on creating these documents. In this case, they could become frustrated if they see no improvement in their job search. The client can file a lawsuit against the coach for negligence.
- There could be a slip-and-fall accident at the office. A client could fall down a flight of stairs and suffer from severe injuries. It could result in a lawsuit if someone is found to be negligent.
- While driving a company vehicle to work, the coach could get into a car accident and damage somebody's vehicle or cause injury. This would be considered negligence, and the coach could be legally liable for damages caused by their driving infractions.
- A fire at the office could result in a substantial financial loss to the business's assets and lost income from closing while repairs are done.
Coverages Recommended for Career Coaching
Career coaching insurance protects a career coach and their business against lawsuits. Here are the types of insurance to include for a career coaching business:
1. General liability (GL) Insurance
This coverage is designed to protect the career coach’s business if they are sued for third-party physical injury or property damage occurring on their premises or from their product or service.
For example, if a client is injured while attending a coaching session, their claim would be covered under a GL policy. It also provides coverage against any damage the coach may cause to another person’s property through negligence.
2. Errors and Omissions (E&O) Insurance
This coverage (also known as Professional Liability) is designed to protect the coach if they are negligent in the performance of their professional service that causes a financial loss to a client. It also provides coverage for financial loss a client suffers due to the coach’s mistake.
For example, if the coach gives incorrect information to their client about how best to market their business, and the client loses revenue with this idea and sues the coach, this could be covered under an E&O policy.
3. Business Owner's Policy (BOP)
A BOP includes commercial property and general liability coverage. The general liability component provides coverage for third-party claims resulting from bodily injury or property damage that occurred at the business site. Additionally, it provides coverage for advertising and personal injury that the business may face. The commercial property component provides coverage in case of damage to business property due to incidents like fire, hurricanes, and other perils. In addition, a BOP usually includes business interruption coverage which replaces income lost if the building is damaged by a covered peril which results in the business having to close down. It is cost-effective because it combines coverage for multiple insurance policies into one.
4. Cyber Insurance
This insurance provides coverage for recovery from data breaches and cyberattacks. It can also pay for data breach investigations, customer notification costs, and fraud monitoring services. This policy is specifically recommended for businesses that store sensitive customer data or have a website that gathers personal information such as credit card numbers.
5. Workers' Compensation Insurance
Workers' Compensation insurance provides coverage for medical care and rehabilitation expenses for employees who are injured on the job. It also pays a percentage of lost wages and other state-mandated benefits.
6. Commercial Auto Insurance
Commercial Auto insurance provides coverage for the costs associated with an accident involving company vehicles. Commercial auto insurance can protect the business owner from significant financial losses brought by bodily injury or property damage liability lawsuits.
How Much Does Career Coaching Insurance Cost?
The cost of career coaching insurance depends on many different factors. The services offered, location, revenue, owned asset values, building construction details, and prior claims all play a part in the premium calculation. It also varies with the kind of coverage needed and the limits purchased. For example, a company that doesn't have any employees and only offers client’s one-on-one services is likely to pay less than a big firm with multiple employees.
There are many types of insurance a career coach may need. The best way to determine the right insurance is to speak with an agent who specializes in small businesses. They can help explain the policies available and what they cover. They can guide you on how much coverage is needed. For more information, log on to www.insuranceadvisor.com.