I diffused “Thieves” oil during class to “clean the air.” A student with severe asthma went into bronchospasm and had to be rushed to the ER. She sued, claiming I introduced a “noxious substance” into a confined space without warning.
Key Takeaways
- Pollution Exclusion: Many GL policies exclude “Bodily injury arising from the discharge, dispersal, seepage, migration, release or escape of pollutants.” Is essential oil a pollutant? Some insurers argue yes if it causes respiratory distress.
- Product Liability: You “distributed” the oil via the air.
- Allergy Warning: Failure to ask about allergies is negligence.
- MLM Liability: If you sell the oils too, that’s a separate commercial activity.
The “Why”: The Fumes Trap
The Trap:
You think it’s natural. The insurer thinks it’s a chemical.
If a student reacts to a chemical you released, the Pollution Exclusion is the carrier’s favorite way to deny the claim.
You need a policy that specifically covers “Aromatherapy” to override this exclusion.
The Investigation: I Quoted 3 Major Carriers
1. NACAMS (for doTERRA/Young Living)
- My Analysis: They have specific policies for Wellness Advocates. They cover the liability of using and selling the oils.
2. PHLY
- My Analysis: They frown on diffusers in studios due to the allergy risk. They might cover it, but they’ll fight you on the “Pollutant” definition.
3. Alternative Balance
- My Analysis: Covers Aromatherapy as a core modality. This is the safest route for oil-loving teachers.
[IMAGE: Graphic of “Allergy Alert” sign for studio door]
Comparison Table: Aromatherapy Liability
| Carrier | Covers Diffusing? | Covers Selling? | Pollution Exclusion Override? |
| Alt. Balance | Yes | Yes (Optional) | Yes |
| NACAMS | Yes | Yes | Yes |
| Standard | Risky | NO | NO |
Step-by-Step Action Plan
- Ask First: “Is anyone sensitive to scents?”
- Label the Diffuser: Put a sign: “Diffusing Lavender Today.”
- Ventilation: Ensure airflow.
- Add Modality: Ensure “Aromatherapy” is on your insurance.
FAQ
Can I put oil on them?
That is “Topical Application.” Higher risk. Get consent.
What if they slip on spilled oil?
Slip and Fall (GL).
Is burning sage (smudging) covered?
Fire risk! See “Rental Damage” article.