You use NLP “anchoring” techniques to help a client overcome a phobia. The client has a panic attack, claims you re-traumatized them, and sues for practicing psychology without a license. You look at your Life Coach policy and wonder if “NLP” is a covered modality or an excluded “mental health service.”
Key Takeaways
- NLP is Unregulated: Since NLP is not a licensed profession, it sits in a gray area. Insurance often classifies it under “Coaching” or “Hypnotherapy.”
- The Scope Trap: If you use NLP to treat trauma or phobias (medical conditions), you are practicing therapy. Life Coach insurance covers “Goal Setting,” not “Curing Phobias.”
- Designated Services: You must ensure “Neuro-Linguistic Programming” is explicitly listed on your policy declarations.
- Informed Consent: You need a waiver stating: “NLP is a coaching tool, not a medical treatment.”
The “Why” (The Trap): The “Treatment” Exclusion
I read a standard Coach policy exclusion list.
“Excluded: Services intended to diagnose, treat, or cure any mental or physical condition.”
If your marketing says “Use NLP to cure your anxiety,” you just voided your insurance. You must frame NLP as “Performance Enhancement” or “State Management,” not “Cure.”
The Investigation: Covering NLP
I called niche brokers who understand this modality.
1. Westminster Insurance / BGI
- My Analysis: They are British/Global carriers with strong US presence for “alternative” modalities.
- Coverage: They list NLP specifically as a covered activity.
- Requirement: Proof of certification (Practitioner or Master Practitioner level).
2. Alternative Balance
- My Analysis: Covers NLP under “Holistic Wellness.”
- The Benefit: Allows you to combine NLP with other tools like Reiki or Hypnosis under one policy.
3. Standard Business Liability
- My Analysis: Risky. They don’t understand what NLP is and might deny a claim based on the “Mental Health” exclusion.
Comparison Table: NLP Coverage
| Framing | Insurance Status | Risk Level |
| “NLP for Success” | Covered (Coaching) | Low |
| “NLP for Anxiety” | Excluded (Therapy) | High |
| “NLP for Trauma” | Excluded (Therapy) | Extreme |
Step-by-Step Action Plan
- Update Your Policy: Call your broker. Ask: “Is NLP a covered modality?” Get it in writing.
- Scrub Your Website: Remove “Treat,” “Heal,” “Cure,” “Trauma,” and “Phobia.” Use “Overcome,” “Shift,” “Change,” and “Fear.”
- Waiver: Client signs: “I understand the practitioner is not a licensed therapist and NLP is not psychotherapy.”
- Scope of Practice: If a client reveals deep trauma, refer them to a therapist. Do not try to “fix” it with the Fast Phobia Cure unless you are also a licensed clinician.
FAQ Section
Is NLP considered Hypnosis?
Insurers often group them together. If you do NLP trance work, ensure you have “Hypnosis” coverage too.
Does my NLP certificate count as a license?
No. It is a private certificate. It holds no legal weight with the State Board.
Can I do NLP on kids?
Higher risk. Parents are litigious. Ensure your policy covers “Minors.”