My client was going through a divorce. During sessions, we talked about it. I gave advice: “You should cut him off,” “Stand your ground,” “Stop taking those meds, they make you gain weight.” The client spiraled into a mental health crisis and attempted self-harm. Her family sued me for “Negligent Psychotherapy” and practicing medicine without a license.
Key Takeaways
- The Scope Gap: You are a CPT, not an LCSW (Social Worker). “Life Coaching” is often unregulated, but “Psychological Advice” is heavily regulated.
- Medical Malpractice Exclusion: Standard trainer policies exclude claims arising from medical or psychological services. You have zero defense coverage here.
- “Undue Influence”: As a trainer, you have power over the client. Courts view this as a fiduciary relationship. Abusing that trust to give life advice is dangerous liability.
- Medication Interference: Telling a client to stop meds is a crime in some jurisdictions.
The “Why”: The Professional Services Definition
The Trap:
Policy Definition of Services: “Personal Training and Fitness Instruction.”
Not Included: “Mental Health Counseling,” “Relationship Counseling,” “Medical Management.”
If the lawsuit alleges you caused harm via psychological advice, the carrier denies the claim as “Outside Scope of Coverage.”
The Investigation: I Quoted 3 Major Carriers
1. CPH & Associates
- My Analysis: They specialize in Mental Health liability. If you are actually a “Life Coach” or “Health Coach,” buy a policy from them. It covers the talking part. A standard gym policy does not.
2. Lockton Affinity
- My Analysis: Strict limits. They explicitly exclude any liability arising from advice regarding “prescription medication.” If you touched the meds topic, you are on your own.
3. Philadelphia (PHLY)
- My Analysis: They cover “incidental” advice (e.g., “Keep your chin up”), but if the advice becomes the primary cause of injury (mental anguish), they will scrutinize your credentials.
[IMAGE: Diagram showing “Referral Network”: When to refer to a therapist]
Comparison Table: Scope of Advice
| Role | Policy Type | Covers “Talk Therapy”? | Covers Med Advice? |
| Trainer | Fitness Liability | NO | NO |
| Life Coach | Allied Health Liab | Yes (Non-Medical) | NO |
| Therapist | Med Malpractice | Yes | Yes (Psychiatrist) |
Step-by-Step Action Plan
- Stay in Your Lane: “I am not a therapist. I can listen while we squat, but I cannot advise.”
- Build a Referral Network: Have cards for local therapists. Handing one out is a great defense.
- Check Policy for “Health Coaching”: If you do “Life Coaching,” ensure that code is on your policy.
- Never Touch Meds: Never. Ever.
FAQ
Can I call myself a “Holistic Coach”?
Sure, but ensure your insurance knows that. “Holistic” implies broad advice.
Is listening negligence?
No. Active advice (“Leave your husband”) is negligence.
What if they cry during a session?
Hand them a tissue. Do not diagnose the source of the tears.