Yes, you manage your business online and have no physical overheads, but does that mean you don’t need security? Not quite. While the internet is resourceful, it can be a dangerous place. Even the smallest e-businesses must invest in a comprehensive insurance policy.
That’s because an insurance policy is an umbrella for your business’s proverbial rainy day –– whether in-person or online. It protects your livelihood and property, predicts unforeseen circumstances that could impact your practice, and adds an extra layer of professionalism to your services so clients feel comfortable working with you. These are all positive — even invaluable — benefits for your coaching company.
Online coaching businesses manage different risks from those of in-person practices, such as data breach and hacking. Coaches with physical locations may want to get insured for bodily injury in case a client slips while walking into the office or for property damage if a burst pipe destroys their computer.
But what about virtual coaches?
Here’s all you need to know about the ins and outs of insurance for online businesses, including why virtual coaches should protect themselves with the right small-business insurance.
Why online businesses need insurance coverage
Although e-businesses are less likely to be held liable for a physical accident or property damage, other risks exist. A certificate of insurance protects you against the following:
- Hacking: Hackers attack your company’s websites, servers, and social media accounts. These cybercriminals gain access to sensitive information and misuse it, selling it to third parties or committing identity theft.
- Malware: Malicious software damages your computer and changes the normal functioning of the equipment, potentially rendering it unusable.
- Data breaches: Unauthorized parties acquire access to sensitive information about your clients, such as their medical histories, which you store on PCs. Data breaches can be both intentional (a hacker gaining access to your client database) and accidental (one of your employees or you inadvertently sharing client information on the internet. For example, if a coach sends an email with private data to the wrong client, it’s a breach of confidentiality, albeit unintentional.
You’ll rest easier if you use a customer relationship management (CRM) tool with built-in security measures for client data. But purchasing a specific business insurance policy is still wise because you must uphold the contractual privacy obligations to your clients. You want to demonstrate that in addition to using secure software to save their data, you have an insurance policy that covers breaches. And during a dispute, this policy clarifies misunderstandings about what you can be held liable for.
What kind of cyber insurance do coaches need?
Online business owners, including coaches, must protect their clients’ confidential information. Insurance policies for online companies cover the following:
- Cyber liability insurance for online businesses: This policy protects against data breaches or cyberattacks. This is hacking insurance and also helps replace your equipment if malware damages your system.
- Business income insurance: Online coaches depend on their computers for business operations. If accidents, hacking incidents, or other circumstances prevent you from working, business interruption insurance provides you with capital to cover expenses during this period of lost income.
- Data breach insurance: Like cyber liability coverage, data breach insurance covers policyholders when sensitive client information leaks. The insurance company also notifies clients of the violation.
- Business property insurance: You may overlook property insurance because you work remotely. But what if someone steals your work equipment or tools, such as a computer, phone, or desk? Don’t worry –– property insurance helps you replace these items and keep working.
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How to choose the best insurance for your business
When you start a coaching business, you create a marketing and overhead budget –– but why not also set aside funds to protect your company and show clients they’re in good hands? Here’s how to choose the right business insurance coverage:
- Account for your business needs: Yes, you may want protection against malware damage, hackers, and data breaches, but chances are you own equipment and even a workspace, such as an office, that you wish to insure. Now’s the time to listen to the part of your brain that conjures up worst-case scenarios to ensure you choose a policy that covers anything that could go wrong.
- Find insurance companies that cover these needs: Research what online business insurance agencies offer. If you don’t see a ready-made plan that meets your needs, get in touch with an insurance agent and customize the best coverage plan.
- Set a budget: It’s wise to research online insurance costs before you set a number so you don’t aim too low. We know that shelling out for one more expense is challenging when trying to make a profit, but remember that business insurance costs are an investment for your company’s security.
- Seek quotes from insurance providers: Even if you think a specific insurance company or policy doesn’t fall within your budget, reach out to agents or get business insurance quotes online. Consider all the quotes and factor in their pros and cons before making a decision. Here are a few examples:
- Huckleberry: The company promises quick quotes and dedicated client support. It specializes in insuring small businesses.
- Thimble: The company allows clients to make modifications even after they purchase a policy, ensuring seamless aftersales support.
- CoverWallet: The company helps clients by comparing multiple options and offering the best deal.
- Next Insurance: The company aims to support small businesses and solopreneurs by providing the most financially stable policies.
Extras to cover
Your online business insurance policy should cover many of the potential incidents your company could face. But if you want an added layer of security, consider insuring yourself against the following issues as well:
- Public relations (PR) assistance: As a coach, you may encounter clients who even after multiple sessions are dissatisfied with your services, resulting in poor reviews or bad press. Consider investing in a policy that helps during a PR crisis.
- Legal fees: Check out policies that cover legal services to safeguard yourself under unfortunate conditions, such as a court case.
- Medical bills: If you run an online business, you’re an entrepreneur. And entrepreneurs must provide for their own medical expenses. . Consider both life and health insurance policies.
Keep client data safe from the start
One of the most significant risks that online businesses face is a data breach. We recommend keeping your data as safe as possible from the beginning to avoid a potential issue.
And remember to keep client information secure using a reputable CRM program. Practice’s client management feature, designed with coaches in mind, allows you to safely store client data, send messages and documents (such as your coaching contracts), and receive payment.
Although a reliable CRM tool can’t replace a cybersecurity insurance policy, it definitely organizes clients’ files and histories and makes the client relationship smoother. Try us today.
