Author Topic: professional liability insurance (coaches, writers, etc)  (Read 3041 times)

scrubbyfish

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professional liability insurance (coaches, writers, etc)
« on: February 04, 2014, 04:34:40 PM »
Other coaches, writers, independent social workers or counsellors, etc, out there?

To keep it super simple, let's say that with no education or background, I provide coaching in a very specific area. The coaching is very effective, so we're all good on that count.

When the coaching became quite successful -meaning, more clients/contact- it occurred to me it was time for professional liability insurance, just in case something ever went awry.

Last year, a competitor was successful in near-destroying my tiny business, so now I have to ruthlessly re-examine costs. (Ideally, the legal costs involved in protecting my business from this person would have been covered by the liability insurance, but I didn't realize that in time to request coverage in advance.)

Questions

Is it insane to pay $3000.00 (three thousand dollars) each year for professional liability insurance?
Or is it insane NOT to pay $3000.00 (three thousand dollars) each year for professional liability insurance?
Where is the wiggle room? Or alternatives?

lcg377

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Re: professional liability insurance (coaches, writers, etc)
« Reply #1 on: February 04, 2014, 05:01:59 PM »
Is there a professional association that is aligned with your service? My husband was a massage therapist, and gets coverage through his membership in a national professional group.  He paid less than $300/year for membership, and is covered for something like $1 million.

scrubbyfish

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Re: professional liability insurance (coaches, writers, etc)
« Reply #2 on: February 05, 2014, 04:20:01 AM »
Brilliant, lgannon! I will ponder what associations might be accessible to me. Premiums are due in June, so I have some time. Thanks!

scrubbyfish

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Re: professional liability insurance (coaches, writers, etc)
« Reply #3 on: February 07, 2014, 08:27:14 AM »
Any additional thoughts on this topic, folks?

Daleth

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Re: professional liability insurance (coaches, writers, etc)
« Reply #4 on: February 07, 2014, 08:35:45 AM »
Any additional thoughts on this topic, folks?

I agree with Igannon. On a related note, shop around (including by googling "liability insurance life coach" and related terms). It sounds like you have a quote for $3000--you need more than one quote. They can vary wildly. Also, examine what would be covered by that $3000 and evaluate whether it covers anything you don't need.

scrubbyfish

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Re: professional liability insurance (coaches, writers, etc)
« Reply #5 on: February 07, 2014, 08:39:45 AM »
Thanks, Daleth! Funny, I shop around for my $300/yr tenancy insurance, but it didn't occur to me to do so for this one! Oy! That's why I come to the forum, yep.

swick

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Re: professional liability insurance (coaches, writers, etc)
« Reply #6 on: February 07, 2014, 11:05:01 AM »
Sounds like it might be a good plan, and should be a business write-off anyways.

Especially worth considering if you are: 1. in the USA  where you have a higher chance of being sued in general. 2. Have a lot of assets in your name. 3. Depending on the structure of your company, if your personal assets are at risk. 4. Depends on your area of work - if there is any chance that your advice could run you amok of any governmental or regulatory agencies.

Definitely look into associations that support your field!

ShortInSeattle

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Re: professional liability insurance (coaches, writers, etc)
« Reply #7 on: February 07, 2014, 01:00:02 PM »
I pay about half that for E&O. Shop around a bit.  I do think it's a wise investment.

Daleth

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Re: professional liability insurance (coaches, writers, etc)
« Reply #8 on: February 08, 2014, 10:29:10 AM »
Just FYI, insurance is not just for people with lots of assets to protect. If you have liability insurance and you get sued for some kind of professional malpractice, your insurer will PAY FOR YOUR LAWYERS. That's nothing to sneeze at. Google "insurer's duty to defend" for more info.

chucklesmcgee

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Re: professional liability insurance (coaches, writers, etc)
« Reply #9 on: February 08, 2014, 01:41:28 PM »
Just FYI, insurance is not just for people with lots of assets to protect. If you have liability insurance and you get sued for some kind of professional malpractice, your insurer will PAY FOR YOUR LAWYERS. That's nothing to sneeze at. Google "insurer's duty to defend" for more info.

Yeah, but people usually sue people with assets. Rich people are the primary targets of malpractice suits because they've got a load of cash. They can easily pay whatever damages are awarded and juries aren't sympathetic to rich people. You go after an ordinary person and juries will balk at awarding large sums because they can more easily imagine themselves in that person's shoes. And most attorneys are going to be deterred from taking a case against a small potatoes defendant might not be worth fighting out for 2-3 months.

Unless you're really in a position to seriously physically injure someone, are very wealthy or work with very wealthy clients, I'd be very hesitant to take on a costly insurance policy.