Is Life Coaching Covered by Insurance? An Expert's Perspective

Learn about the risks associated with life coaching and how to protect yourself with professional liability insurance.

Is Life Coaching Covered by Insurance? An Expert's Perspective

As a psychotherapist and coach, many of my clients ask if they can use their health insurance to pay for life coaching services. Unfortunately, in the United States, this is almost never possible. However, there are other ways to protect yourself and your business from potential risks. Most life coach insurance policies include professional liability coverage, which helps cover legal defense fees, settlements, and judgments associated with covered claims.

The ultimate goal is for the health coaching CPT to be reclassified as Category I, but in the meantime, there is still a process you can follow to bill insurance for Category III services. Fortunately, life coaching is not considered a high-risk occupation when it comes to obtaining life insurance. That means you should have no problem getting coverage. The best way to protect yourself and your business is to opt for a customizable business owner policy (BOP).

This policy usually includes professional liability coverage, which can help protect you from claims arising from your services. The cost of life coach insurance depends on several factors, including risk, location, and claim history. When looking for life insurance for life coaches, it's important to remember that anything you can do to reduce the risk in your life will show your insurer that you are dedicated to living a long and healthy life. It's also important to remember that life coaches don't have a licensing board to which they can divert certain lawsuits against them.

While your job as a life coach isn't high-risk, you may have other risk factors that increase your rates. In any of these circumstances (or almost any other situation), a client can claim that their life coach had a negative impact and attempt to seek financial compensation for that impact.