2014

Insurance Policies for Executive Coaching, Career Counseling, and Executive Training Businesses

As you figure out which types of insurance you need and how much your executive coaching, career counseling, or executive training business can afford to spend, here are the basic insurance policies you should consider. These policies can help you meet your legal requirements and protect you from sudden costs and unexpected lawsuits.

General Liability Insurance for Executive Coaches, Sales Coaches, and Executive Development Professionals

Often state-required, General Liability Insurance is one of the first insurance policy that executive coaches have to purchase.

This insurance covers your business when a third party sues you over…

  • Damaged / destroyed property.
  • Physical injury.
  • Advertising injury.
  • Copyright infringement.
  • Damaged reputation.

When this happens, GLI pays for your legal defense and related expenses, including…

  • Lawyers.
  • Witnesses and evidence costs.
  • Damages or other fees you'll have to pay to the other party in a settlement or judgment.

As an executive coach, you work at other businesses' offices, which makes you susceptible to lawsuits over damaged property and other general liabilities. Let's say you're giving a presentation to a group of newly promoted managers. While walking around the conference room, you knock over a cup of coffee onto one of their laptops. Your business could be sued for the property damage. Fortunately, General Liability Insurance can pay for the lawsuit.

Many executive coaching businesses are required to carry General Liability Insurance to operate in their state. Talk with one of our agents about meeting your state's requirements.

Property Insurance for Business Coaching Professionals

Like the Homeowner's or Renter's insurance you have for your personal property, Property Insurance covers your business's offices and the equipment, supplies, and other commercial property inside them.

Commercial Property Insurance can give your business money to replace its lost or stolen property after a…

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

When someone breaks into your office, you could lose thousands of dollars' worth of electronics, equipment, and other property. Your Property Insurance can write you a check to cover your losses and help you bounce back.

If you rent your office space, you may assume that your landlord's insurance will cover your business, but that's not true. Your landlord can be held liable for your lost property if they were negligent (i.e., forgot to fix a lock on your office door), but usually your business is responsible for its own Property Insurance. In fact, your lease agreement may require you to have this policy.

Property Insurance policies also include Business Interruption Coverage, which can help your business recover from a fire or other covered event that causes you to temporarily close your office. BIC can pay your business the income it normally receives, which will help you pay your salaries, benefits, and other costs even when your business has to temporarily shut down.

Business Owner's Policies for Executive Coaches

Business Owner's Policies (or BOPs) combine Property and General Liability coverage in one policy that usually costs less than purchasing them on their own.

BOPs are a smart way for small businesses to save money on two insurance policies that they usually have to purchase to meet regulatory requirements. The coverage you get with a BOP is likely the same you would get if you bought GLI and Property Insurance separately, and BOPs offer this coverage for a discounted premium.

Not every executive training business qualifies for BOP coverage. Insurance companies don't sell these policies to businesses that are "higher-risk." Your business can qualify if it…

  • Doesn't need more than 12 months of income insurance through Business Interruption Coverage.
  • Doesn't own / rent / operate from large-scale premises.
  • Doesn't work in a "higher-risk" business or industry.

Submit our online insurance form and our agents will check to see if your business qualifies to save money with a Business Owner's Policy.

Cyber Liability Insurance for Executive Coaching, Career Counseling, and Executive Training Businesses

Cyber Liability Insurance (also known as Data Breach Insurance or Cyber Risk Insurance) protects your business from the costs associated with a cyber attack.

A cyber attack is when hackers break into your network to steal information or money from your business. Hackers may be looking for personal information like SSNs that will allow them to steal the identities of employees, customers, and other people your business has in its records.

There are two kinds of Cyber Liability Insurance…

  • First Party Response.
  • Third Party Defense.

Most likely your business will only need a First Party Response policy, which covers you if your computer network is hacked. Third Party Defense policies cover IT and IT-related consultants that install networks and software on their client's computers.

A First Party Response policy will pay for your business to…

  • Contact customers / clients / other people whose data may have been stolen.
  • Launch a new P.R. or advertising campaign to rebuild your company's reputation.
  • Hire investigators to figure out who hacked into your network and how they broke in.
  • Monitor clients' / customers' credit for potential fraud.

Cyber Liability Insurance can help your business restore the trust it may lose from its clients and prevent future attacks.

Errors and Omissions Coverage for Executive Coaches, Sales Coaches, and Job Coaching Professionals

Errors & Omissions Insurance (also known as Professional Liability Insurance or E&O coverage) pays for lawsuits over the quality, delivery, and execution of your work.

E&O Insurance can pay for lawsuits that allege your business…

  • Didn't deliver the services it agreed to.
  • Made mistakes or oversights.
  • Gave unsatisfactory business coaching to your clients.

It can be hard to please customers. Executive coaches have the hard task of teaching people how to be business leaders. When a client thinks your seminar failed to prepare one of its managers on how to prevent a harassment issue, your business could be sued.

Errors and Omissions Insurance is a claims-made coverage, which means that it doesn't cover lawsuits initiated over mistakes you made before your business was covered. That's trickier than it sounds. You can be sued today for business coaching you did two months before you were covered. In this case, your insurance won't cover you (unless you purchase special additions to your policy). E&O only covers claims about events that happened while you were paying premiums.

For this reason, it's important for executive coaches and other business coaches to get E & O coverage early on to cover their professional liabilities.

Workers' Compensation Insurance for Executive, Career, and Business Coaching Professionals

Many career and executive coaches have to purchase Workers' Compensation Insurance (also called Worker's Comp or Workman's Comp) to meet your state's requirements. Employers usually have to purchase this insurance to cover their business from the liabilities and costs of on-the-job illnesses and injuries.

When an employee gets hurt at work, Workers' Comp can pay for…

  • Employee medical costs.
  • Employee salaries while they are unable to work.
  • Your legal expenses if an employee sues you for contributing to the injury.
  • Funeral costs and support income for families of deceased employees.

If an employee falls down the stairs, you could be liable. Many Workers' Comp claims come from accidents like this. Even in an executive coaching business, employees can get hurt doing many normal, day-to-day things. Make sure your business is protected from these and other claims.

Insureon: Custom-Built Small Business Insurance for Executive Coaching, Career Counseling, Executive Training Businesses

Fill out our simple online insurance form and receive a free quote from our insurance professionals. Our agents will custom-tailor an insurance quote with policies designed for executive coaches, career counselors, business coaches and other coaching professionals. Complete our online application, or contact us today.

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