2014

Insurance Policies for Corporate Trainers, Coaches, and Mentors

Corporate trainers have a variety of liabilities that insureon's business insurance can protect. Here are some of the policies your business may need to protect itself from lawsuits and other unexpected expenses that could threaten your corporate training business.

General Liability Insurance for Corporate Training Programs, Training Classes, and Job Training

General Liability Insurance protects corporate trainers from lawsuits that could financially cripple their business. General Liability Insurance pays for your small business's legal expenses when it is sued by third parties who claim it…

  • Damaged property or created an environment that led to property damage.
  • Caused a physical injury.
  • Caused an advertising injury.
  • Committed libel or slander.

Third parties are your trainees, customers, clients, vendors, and other people your business doesn't employ.

Corporate trainers are constantly traveling to other businesses and interacting with their trainees, which makes them susceptible to lawsuits regarding damaged property or physical injuries.

Let's say one of your training sessions includes a classic group activity: the trust fall. What happens when the trust fall doesn't go as planned and the falling trainee slips out of the hands of their coworkers and falls to the ground, dislocating their shoulder.

In this situation, your business could face a lawsuit. When you do, General Liability Insurance can pay for your legal bills, which might include…

  • Lawyers.
  • Paralegals.
  • Court room expenses.
  • Damages paid to a third party (their medical bills, pain and suffering, etc.).

Property Insurance for Corporate Coaches and Trainers

Property Insurance reimburses your business when its equipment, corporate training materials, supplies, offices, and other property is lost or damaged in a…

  • Fire.
  • Theft.
  • Act of vandalism.
  • Covered weather event.

Let's say you're coming back from a training class. When you get to your office, you find the back door has been kicked in. Someone has broken in to your office and stolen some tablet computers, a projector, and other electronics. When this happens, your commercial Property Insurance can pay for the value of the lost property.

When you purchase Property Insurance, you'll have to set a value for your property. You'll have two options: an actual cash value policy or a replacement value policy.

Actual cash value policies usually cost less, but give you lower coverage. They insure your property for its "cash value," which is its current value. Electronics and other property depreciate after you purchase them. Your old laptop might be worth $500 now, even though you bought it for $1,200.

Your other option is a replacement value policy, which, as the name suggests, covers your property for the cost to replace it with new gear. With a replacement value policy, your old laptop would be covered for its replacement value ($1,200). These policies ensure that you'll be able to purchase new equipment and supplies to replace the old.

Many Property Insurance policies include Business Interruption Coverage. This coverage pays your business for the income it loses when you are forced to close temporarily because of a fire, weather event, or other covered claim. This policy can make sure you're able to pay your bills, salaries, and other financial obligations.

Business Owner's Policies for Corporate Training and Coaching Businesses

Business Owner's Policies (aka BOPs) combine the first two insurance policies we've discussed: General Liability Insurance and Property Insurance.

Like a combo meal, BOPs give you multiple policies for a lower price than purchasing the items separately.

In order to get this discount, your corporate training business will need to qualify as a "lower-risk" small business. Typically, insurers will offer these plans to business that…

  • Don't need Business Interruption Coverage for more than a year's worth of income.
  • Don't work as a part of a hazardous or risk-prone industry.
  • Don't have large offices or workplaces.

Many of our customers qualify for these discounts and can get their business insurance for less. When you submit our online insurance form, our agents will check to see if your business qualifies for a BOP and send you a free quote.

Cyber Liability Insurance for Corporate Trainers, Coaches, and Mentors

Cyber Liability Insurance (also called Data Breach Insurance or Cyber Risk Insurance) protects your corporate training business when its networks or computers are hacked. This insurance comes in two varieties…

  • First-Party Response.
  • Third-PartyDefense and Liability.

As a corporate coach, a First-Party Response policy probably makes the most sense. This coverage helps your business respond to a cyber attack on its computers.

What is a cyber attack? Cyber criminals (aka hackers) break into a business's network to steal money, attempt to extort money from you by threatening to install viruses, or steal information (often with the purpose of stealing the identities of your customers).

Despite what you may expect, these attacks are usually targeted at small businesses. Over 70% of cyber attacks occur at small businesses. When your network is hacked, your business will often have to inform any clients, trainees, and other people whose information may have been stolen.

To respond to these attacks, First-Party Response CLI can pay for…

  • Crisis management.
  • Credit monitoring for customers whose data was breached.
  • Alerting customers about the attack.
  • Advertising campaigns to rebuild your reputation.

Your business probably won't need Third-Party Coverage, which covers businesses that install or maintain networks for their clients. When a client's network is hacked, this IT insurance covers their liabilities.

Errors and Omissions: Business Insurance for Corporate Training Programs, Training Classes, and Job Training

Errors and Omissions Insurance (also called Professional Liability Insurance or E&O Insurance) covers the professional liabilities of corporate trainers.

Because corporate coaches teach new skills to trainees, they accept some responsibility for the performance and improvement of their clients' employees. If a client is dissatisfied with your training or its effects, E&O Insurance can pay for the lawsuit.

Errors and Omissions Insurance can pay for lawsuits where your clients allege your business…

  • Delivered substandard training.
  • Made mistakes or oversights.
  • Failed to deliver agreed-upon goods or services.

Here's how E&O Insurance could protect your small business: A corporate technology coach makes a mistake in their training materials, which ends up causing the trainees to repeat an accounting error in their spreadsheets. When the client sues the corporate training professional, Errors and Omissions Insurance can pay for their legal defense, as well as any settlements or judgments assigned.

Workers' Compensation Insurance for Corporate Coaches and Trainers

State laws hold businesses responsible when their employees are injured or made ill by their jobs…

    to cover these liabilities, your state government usually requires your business to purchase Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp).

    Workers' Comp pays for…

    • Medical bills for injured employees.
    • Wages for employees who are unable to work while they recover from an on-the-job injury / illness.
    • Employer's legal defense in a Workers' Comp lawsuit.
    • Funeral costs for deceased employees.

    If one of your employees trips over a power cord in your office and fractures their ankle, your business could be responsible for their medical bills, lost wages, and other liabilities. Workers' Comp can cover these expenses and prevent a lawsuit from draining your bank accounts.

    Insureon: Customized Business Insurance for Corporate Trainers, Coaches, and Mentors

    Don't settle for generic insurance policies. Our agents will customize your insurance to fit the needs of your business and the liabilities of corporate trainers.

    Fill out our simple, online insurance form. It only takes a few minutes, and our agents will send you a free quote designed to protect your business.

    Get instant small-business insurance quotes
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