You open your phone to a missed call from the police stating your client was found unconscious after an attempt, and they found a text from you on her phone sent two hours prior. You freeze, replaying the last session where she seemed down but not “imminent,” and now the family is threatening to sue you for negligence because you didn’t call 911. You frantically search your contract to see if you are defined as a “Mandated Reporter” or just a “Life Coach,” praying your insurance covers the legal defense if the family blames you.
Key Takeaways
- Coach vs. Therapist Distinction: Therapists have a legal “Duty to Warn.” Coaches generally do not, unless they voluntarily assumed that duty in their contract.
- The “Bodily Injury” Clause: In a suicide attempt lawsuit, the “injury” is the attempt itself. You need Professional Liability (Malpractice) that covers bodily injury resulting from your advice (or lack thereof).
- Documentation Defense: Your only shield is your notes. If you didn’t document “Assessed for risk: Low,” the jury assumes you were negligent.
- The “Unauthorized Practice” Trap: If you acted like a therapist (analyzing trauma), insurance might deny the claim because you were practicing outside your scope.
The “Why” (The Trap): The Duty to Warn Gap
The trap here is the blurred line between “Coaching” and “Therapy.”
Standard Life Coach policies cover you for “Error and Omissions” regarding advice on goals and habits. They often exclude “Medical or Psychological Treatment.”
If a client attempts suicide, the plaintiff’s lawyer will argue you were treating depression (medical). If your insurance agrees, they cite the “Unauthorized Practice of Medicine” exclusion and deny your claim. However, if you are a licensed therapist, the trap is the “Duty to Warn”—if you failed to predict the attempt when a “reasonable” therapist would have, you are liable for malpractice.
[IMAGE: Screenshot of a policy exclusion listing ‘Psychological Treatment’ as a non-covered activity for Coaches]
The Investigation: Coverage for “Failure to Prevent”
I called three major carriers to see how they handle suicide-related claims in 2026.
1. CPH & Associates (Mental Health Focus)
- My Analysis: Designed for therapists and authorized coaches.
- The Good: They understand “Duty to Warn.” They provide immediate legal consultation (pre-claim) if a client is at risk.
- The Verdict: Essential if you touch on mental health at all. They cover the defense costs to prove you weren’t negligent.
2. Hiscox (General Business Coach Policy)
- My Analysis: I asked about a suicide lawsuit. The rep hesitated.
- The Risk: Their policy focuses on financial loss (e.g., “You made me lose my job”). A bodily injury claim from a suicide attempt might trigger a “Medical Services” exclusion.
- My Advice: Dangerous for “Mindset” coaches dealing with deep emotional work.
3. HPSO (Healthcare Providers)
- My Analysis: Great for Counselors/Social Workers.
- The 2026 Context: They now use AI to scan your case notes during a claim. If your notes are sparse, their settlement algorithm suggests paying out (which hikes your rates) rather than fighting.
Comparison Table: Liability for Client Harm
| Role | Legal Duty to Warn? | Insurance Covers Suicide Suit? | Key Exclusion to Watch |
| Licensed Therapist | Yes (Mandated) | Yes (Malpractice) | Sexual Misconduct |
| Life Coach | No (Usually) | Maybe (Depends on Policy) | Medical/Psych Services |
| Hybrid (Coach w/ License) | Yes (Held to higher std) | Yes (If licensed) | Scope confusion |
Step-by-Step Action Plan
- Check Your Contract: Does it explicitly say: “I am not a therapist; I do not treat mental illness; Call 911 for emergencies”? If not, update it today.
- Buy “Professional Liability”: Do not rely on General Liability. You need Malpractice/E&O coverage.
- Document “Referrals”: If a client mentions depression, email them a list of therapists immediately. Save that email. It is your proof that you stayed in your lane.
- The “Pre-Claim” Call: If a client attempts self-harm, call your insurance carrier’s legal helpline before the lawsuit arrives. Open a file.
FAQ Section
If I’m just a coach, can I still be sued for negligence?
Yes. Anyone can be sued. The jury will decide if you acted “reasonably.” Insurance pays for the lawyer to argue that you did.
Does insurance cover me if I call 911 and the client sues for breach of privacy?
Usually, yes. Good Faith reporting of imminent harm is a standard defense covered by most professional policies.
I have a psychology degree but no license. Am I a therapist?
To the law, no. To a jury, maybe. Insurance rates you as a “Coach,” so don’t perform therapy tasks, or you void coverage.