2014

Need-to-Know Insurance Policies for Career Coaches, Mentors, and Career Development Professionals

At insureon we like to make insurance simple for career coaches and other small-business owners like you. If you've ever felt overwhelmed by insurance, you're not alone. Rather than giving you another thing to worry about, we make insurance easy to understand and tailor your insurance to meet your needs.

Here's a breakdown of the basic policies your life coaching business needs to consider.

General Liability Insurance for Life Coaches, Career Test Administrators, and Job Coaches

Liability insurance policies pay for lawsuits, and General Liability Insurance covers lawsuits that come from third parties who claim your career-coaching business…

  • Damaged their property.
  • Harmed their reputation.
  • Caused a physical injury.
  • Created an environment that led to an injury or damaged property.

Practically speaking, this means that General Liability Insurance pays for many common lawsuits that could affect any business, which is why state governments often require businesses to purchase this insurance. GLI keeps your business afloat when certain common lawsuits threaten to sink it.

When a FedEx carrier slips coming up your stairs on an icy day, your business may be liable. General Liability Insurance can pay your legal bills when the deliveryman sues you. These expenses include…

  • Legal defense costs (lawyers, paralegals, etc.).
  • Court costs (evidence, witnesses, etc.).
  • Settlements or judgments paid to the injured party.

In the example above, let's say the FedEx carrier slips down the stairs, twisting their ankle and smashing their head on the concrete. Their ankle needs reconstructive surgery. The concussion they suffer leads to a series of MRIs and medical tests. These costs add up to tens of thousands of dollars. In addition, the carrier misses time at work, which causes them to lose income. When they sue your business, your GLI can pay for this five-figure legal bill.

Property Insurance for Mentoring and Career Coaching Small Businesses

In order to protect your equipment, supplies, offices, and other commercial property, your business will need to purchase Property Insurance.

Property Insurance doesn't pay for lawsuits. Instead, it can reimburse your business for lost or damaged property in the case of…

  • Fires.
  • Burglary / theft.
  • Acts of vandalism.
  • Weather events.

Many severe weather events aren't included in standard Property Insurance policies, so if you want to be covered for hurricane or flood damage, you may need to ask an agent about adding that to your coverage.

Here's how Property Insurance can protect your mentoring or life coaching business. You've been out of town traveling to lead a seminar in career development. When you get back to your office, you find that one of your windows is open. Someone has broken in and stolen you computers, a few pieces of office equipment, and other property. After calling the police and reporting the incident, you talk with your insurance agent, who takes down the details. They receive a copy of the police report and send you a check for the value of the property you've lost.

Property Insurance prevents one unfortunate incident - like a fire, theft, or storm - from ruining your business.

Business Owner's Policies for Life Coaches, Mentors, and Career Development Coaches

Business Owner's Policies (or BOPs) don't offer your business any new coverage. Instead they package two other policies under one name, and can offer a discount on this insurance.

BOPs bundle Property and General Liability Insurance into one policy. Insurance companies offer this discount to small businesses that qualify as "lower-risk." Typically, you can qualify if your business…

  • Doesn't have a large office space / building.
  • Doesn't do dangerous or high-risk work.
  • Doesn't need more than 12 months of Business Interruption Insurance with its Property Insurance.

Business Interruption Insurance is included with Property Insurance and can pay for some of the difficulties that occur when a business's office is destroyed. BII can reimburse your business for the income it would normally receive but can't when it has to temporarily close its doors after a fire or other covered Property Insurance claim.

If you meet the criteria for a "lower-risk" small business, you could qualify to save money on your business insurance.

Cyber Liability Insurance for Career Coaches, Mentors, and Career Development Professionals

Cyber Liability Insurance (also called Cyber Risk Insurance or Data Breach Insurance) is an important insurance that covers the growing cyber liabilities that businesses face. The simple fact of being connected to the Internet introduces your business to a variety of risks.

Cyber Liability Insurance pays many costs your business may face when a hacker breaks into your network. There are two types of Cyber Liability coverage…

  • First-party response. This policy covers your firm when its own network is hacked.
  • Third party coverage. This policy is usually for IT professionals who install networks for their customers. It covers a business's liability when their customers' computers are hacked.

As a career development coach, you'll probably only want first-party coverage, which can pay for…

  • Credit monitoring for customers, clients, and other people whose data is exposed in a cyber attack.
  • P.R. / marketing campaigns to restore your business's name after an attack.
  • Crisis management to help guide you through your tricky legal and professional obligations after an attack.
  • Forensic investigation to help you determine the source of the attack and the weakness in your network.

If a cyber criminal hacks into your business, you'll often have to inform all your customers, patrons, and other people. The emails and letter you send out can damage your reputation with your clients and cast your business in an unprofessional light.

Cyber Liability Insurance can help your business bounce back after hackers breach your security.

Errors and Omissions Coverage for Life Coaches, Career Test Administrators, and Job Coaches

To cover your professional liabilities, your career coaching business will need to purchase Errors & Omissions Insurance (also called E&O or Professional Liability Insurance).

As a mentoring professional, you have liabilities for the advice and mentorship you give to your clients. When one of your clients is dissatisfied with the results of your coaching, E&O Insurance can protect you from a lawsuit. Just as clinical psychologists require professional insurance, career coaches have Errors and Omissions Insurance to protect their liabilities.

E&O insurance covers lawsuits where clients allege your business…

  • Gave bad or misleading advice.
  • Made mistakes or errors in judgment.
  • Failed to deliver promised goods and services.

If you administer a career test that suggests a client should go to medical school, your business could be liable for the recommendation. Errors and Omissions Insurance can pay for these lawsuits, even your customer is wrong. It doesn't take a mistake on your part to be sued. Often, customer will file a meritless lawsuit. But if your business doesn't have insurance, you'll have to pay out-of-pocket to defend yourself.

Workers' Compensation Insurance for Mentoring and Career Coaching Small Businesses

To protect you and your employees, many states will require your career-coaching business to purchase Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp).

This insurance pays for the costs related to an employee's on-the-job illness or injury. These costs include…

  • Lost wages to employees who cannot work while they recover from an injury.
  • Employee medical expenses.
  • Employer's legal defenses and other costs arising from a lawsuit.

Worker's Comp claims don't have to happen in a "dangerous" workplace. The most common cause of a Workman's Comp injury is simply a fall. If one of your employees trips over an extension cord and breaks their wrist, your business may be liable. WCI can pay for the cost of the lawsuit as well as the employee's medical expenses.

Insureon: Custom-Designed Business Insurance for Career Coaches, Mentoring, and Career Development Professionals

If you'd like to work with insurance agents who know the ins and outs of business insurance for career coaches, contact insureon.

Our agents specialize in particular fields, and we have specialists in insuring career coaches, life coaches, and other professional mentoring small businesses.

Working with an expert will save you time and may save you money. Our agents customize each insurance policy to fit the needs of your industry. They'll cut out unnecessary policies. You'll get the insurance you want, without any extras that don't protect your business.

Complete ouronline application today for a free quote.

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