You rearranged a home office according to Feng Shui principles. The next week, the client’s stock portfolio crashed, and their spouse filed for divorce. The client, distraught and irrational, sues you for “Creating Negative Chi” and causing financial/emotional ruin.
Key Takeaways
- Duty to Defend: The most valuable part of insurance is the “Duty to Defend.” Even if the lawsuit is absurd (magic/luck), the insurer must hire a lawyer to get it thrown out.
- “Bodily Injury” Definition: Financial loss and bad luck are not “Bodily Injury” or “Property Damage.” A standard GL policy might initially deny the claim because there is no physical damage.
- Professional Liability for “Holistic” Services: If you market energy work/Feng Shui, you need a policy that covers these specific modalities, not just “cleaning/organizing.”
- Contract Waiver: Your contract needs a specific “No Guarantee of Results” clause regarding intangible outcomes (energy, luck, productivity).
The “Why” (The Trap): The Definition of Damages
Insurance covers Tangible Damages.
The client is suing for Intangible Damages (Bad Luck).
Standard carriers might say: “There is no coverable ‘occurrence’ here.” However, if the client alleges “Emotional Distress” (which causes physical symptoms), the “Bodily Injury” clause might trigger the defense.
The Investigation: Insuring the Intangible
I checked “Holistic” insurance providers.
1. Alternative Balance
- My Analysis: They insure Feng Shui consultants specifically.
- The Benefit: They understand “energy work” liability and frivolous claims regarding outcomes.
2. Standard Business Policy
- My Analysis: A claim for “Bad Chi” would likely be laughed at, but you still need a lawyer to file the Motion to Dismiss. If your GL denies coverage because there’s no “property damage,” you pay the $5,000 retainer yourself.
Comparison Table: Frivolous Claims
| Claim Type | Duty to Defend? | Likelihood of Payout? |
| “You broke my lamp” | Yes | High |
| “You gave me bad luck” | Yes (If insured correctly) | Zero |
| “You didn’t fix my life” | Yes (E&O) | Low |
[IMAGE: Screenshot of a ‘No Guarantees’ clause in a Feng Shui contract]
Step-by-Step Action Plan
- Don’t Engage: Do not argue regarding energy flow via text. It validates their premise.
- File a Claim for Defense: Send the lawsuit to your insurer immediately. Demand they defend you against the “alleged negligence.”
- Motion to Dismiss: Your lawyer will file this immediately. Courts do not recognize “Bad Luck” as a cause of action.
- Review Website Copy: Remove promises like “Will bring wealth” or “Guaranteed happiness.” Use “Designed to promote balance.”
FAQ Section
Can I countersue for legal fees?
Yes, if the suit is deemed “frivolous,” but collecting money from a broke/distraught client is hard.
Does this cover me if I burn sage and trigger the smoke alarm?
Yes, that is physical “Property Damage” (smoke/water damage).
Is Feng Shui considered religious?
Legally, usually “Cultural/Philosophical,” but insurance categorizes it as “Coaching/Consulting.”