The Essentials: Protect — Coaching & Online Education

What should a coaching agreement include?

State what the engagement covers: number and length of sessions, communication between sessions, deliverables, and what is not included. Add payment terms, refund policy, cancellation and rescheduling rules, confidentiality, a statement that coaching is not therapy, legal, medical, or financial advice, and that results depend on the client's effort and are not guaranteed. Include a clause on recordings and sharing of program materials, and on how disputes are handled. Have an attorney review the template once, then use it unchanged for every client. Informal exceptions are usually where disputes start.

Do you need professional liability insurance?

E&O or professional liability insurance for coaches commonly costs a few hundred dollars a year for a solo practice, often in the range of $300 to $800, depending on coverage limits and services. It responds to claims that your advice caused financial loss or harm, and pays defense costs, which can be the largest expense even when a claim has no merit. Add general liability if you host in-person events, and cyber coverage if you store sensitive client data. Ask insurers whether your niche, such as health or financial coaching, is covered or excluded.

Where do coaching and licensed professions overlap?

Therapy, counseling, dietetics and nutrition, legal advice, tax preparation, and investment advice are regulated, and some states restrict the titles or activities of unlicensed practitioners. Providing individualized investment advice for compensation generally requires registration as an investment adviser under state or federal law. Keep marketing and sessions focused on goals, accountability, and skills, avoid diagnosis or treatment language, and refer clients who show signs of clinical need to licensed professionals. If your niche is health, money, or relationships, consult an attorney in your state on where the line sits.

How do you handle refunds and chargebacks?

State your refund policy plainly on the sales page, checkout, and contract, with the window and conditions, for example a 14-day money-back period or no refunds after the first session. Keep signed agreements, payment records, session logs, and emails, since card networks decide disputes on documentation. Stripe charges a fee of about $15 per dispute in the US, and card networks monitor dispute ratios, so high chargeback rates can lead to account reviews. Respond to unhappy clients quickly, and offer a defined remedy before they call their bank.

How do you protect your intellectual property and client data?

Register a trademark for your program name if it is core to your business; the USPTO application fee is currently $350 per class, and use of the mark in commerce matters. Copyright in your course content exists automatically, and registration with the US Copyright Office costs $45 to $65 for a typical work and strengthens enforcement. Use written agreements with contractors, editors, and assistants stating that you own the work created for you. For client data, use reputable platforms with two-factor authentication, avoid storing sensitive notes in shared documents, post a privacy policy, and follow email consent rules such as CAN-SPAM.

What is the costliest protection mistake?

Running on verbal agreements. When scope, refund terms, and disclaimers are not in writing, a client who expected more can claim they were misled, and you have little to point to. The second is making earnings or results claims you cannot back up, for example promising income figures in a business program, which the FTC has pursued. The third is ignoring privacy: collecting health or financial details in unsecured forms or shared drives. Write your agreement once, review it when you change pricing or structure, and keep the marketing claims modest and documented.

What should group programs and online courses add?

Group programs and courses need terms of use covering access, no sharing or recording of materials, and community conduct rules. State whether access is for a fixed period, and whether the program can be canceled or changed. If you accept clients outside the US, be aware of privacy laws such as the GDPR for EU residents, and disclose data practices. Display clear disclaimers for health, financial, or legal topics. For membership subscriptions, follow state automatic-renewal laws, which often require clear disclosure and easy cancellation, and keep records of consent.

How should you structure the business entity?

Many coaches form an LLC to separate personal and business assets, at state fees ranging from about $50 to $500. An LLC does not replace insurance or contracts, but it helps limit exposure from business debts. Keep business funds in a separate bank account, and use the entity name on contracts, invoices, and payment processors. Ask a CPA about S corporation election once profits justify it. Register for state and local licenses if required, and collect sales tax on digital products where your state requires it.

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