New To Professional Liability Insurance?

If you are new to the world of liability insurance, you have come to the right place. You will leave this page with the knowledge you need to make an informed decision on your professional liability insurance.

Content Summary:

What is Professional Liability Insurance?

Liability insurance is an important form of professional insurance which provides financial protection for individuals in the event they are sued due to errors or omissions in their provision of services. In other words, it helps to protect the professional from the financial consequences of any legal proceedings or claims that are brought against them.

What is the Difference Between Business Owner Insurance and Liability Insurance?

Business owner insurance is designed to provide financial protection for business owners in the event their business suffers a physical loss due to circumstances such as property damage due to theft or natural disasters, bodily injury or personal and advertising injury. This type of insurance covers losses suffered by a business and can help cover costs associated with fixing or replacing damaged property or equipment.

Individual liability insurance is a type of insurance that covers the individual, rather than the business, in case any legal action is taken against them. This kind of coverage helps to protect individuals from lawsuits or claims related to negligence, errors and omissions, personal injury, property damage, and libel or slander. It can also provide financial protection for costs associated with settlements or judgments incurred due to a claim.

Who Needs Professional Liability Insurance?

Individuals who provide professional services, such as yoga instructors, massage therapists, consultants, freelancers, independent contractors, and small business owners may need individual liability insurance in order to protect themselves from any lawsuits or claims that could arise from their work. In some professions, this insurance is required.

What to Look for When Purchasing Insurance?

As with most decisions you have to search for what makes sense for you. When purchasing insurance Pilates instructors, yoga teachers, group fitness instructors, reiki healers, and so many more wellness pros should look for an insurance policy that provides adequate coverage for the services they provide. Read all 450+ modalities covered. They should also look at the price, benefits of the policy, and if the policy covers any equipment used during classes.

Common Misconceptions of Liability Insurance

  • I don’t need a liability waiver
  • There is a copay with liability insurance
  • People in my industry don't get sued
  • If my employer has professional liability coverage, I don't need it
  • If I use good risk management practices, I don't need coverage
  • Liability insurance is not necessary if you don't have many assets
  • Liability insurance is too expensive
  • Liability insurance is only for businesses

Insurance Liability Definitions

  • Professional Liability: A.K.A. malpractice insurance is a type of insurance that provides coverage for claims of negligence, malpractice, or bodily injury that may arise as a result of providing your services.
  • General Liability: A.K.A. slip and fall insurance is a type of insurance that provides protection against claims of bodily injury, property damage, or personal injury that may occur on the premises of the service.
  • Product Coverage: A type of insurance that safeguards professionals against claims of bodily injury or property damage resulting from the use of their products. E.g. Cleaning chemicals at a yoga studio, allergic reaction to hair color, etc.
  • Occurrence Form Coverage: A type of liability insurance policy that provides coverage for claims that arise from incidents that occurred during the policy period, regardless of when the claim is made. This means that if an incident occurs while the policy is in effect, the policy will cover any claims related to that incident, even if the claim is not filed until after the policy has expired. Occurrence form coverage is the industry's preferred option. NACAMS has opted for this type of liability insurance.
  • Annual Aggregate: Annual aggregate is the maximum amount of coverage available to you for all incidents that occur during the active policy. NACAMS offers an annual aggregate of $3 million.

How to File a Claim

If you have received a claim, as a NACAMS customer either call us directly or go to your member portal and find the headline “File A Claim”. You will be directed to email our claims customer service representative and they will be able to assist you in this process.

What is a Certificate of Insurance?

This is the document you receive physically or digitally that shows proof of your insurance. This certificate is issued by the insurance company after you purchase the policy.

Do You Need My License Number to Get Insurance?

No, NACAMS does not require you to provide your license number when purchasing a liability insurance policy. Only upon the investigation of a claim do we look into any state-required certifications or licenses as it is up to the individual to ensure they are following their state & profession’s requirements. We highly recommend staying up to date with any legal requirements.

State Requirements

Based on your profession, NACAMS asks the professional to acknowledge they have the proper licenses or certifications to safely practice their profession based on your state’s requirements. If a claim is filed against you, we will investigate and if it is found you were not properly certified your insurance is null.

Professional Liability Insurance Frequently Asked Questions

Do I Have to Have Different Insurance Policies Since I Teach Yoga and Fitness Classes?

With a NACAMS policy, you are protected for yoga instruction and group fitness classes. We recommend choosing the type of teaching you do more often as the primary modality when purchasing our insurance but you are covered for over 450 modalities automatically. This goes for all our policy offerings except the Member benefits-only program.  

Do You Offer Microblading Insurance?

Yes, NACAMS now offers Microblading for $499 as an additional add-on. 

What’s Included in the 450 Modalities You Cover?

This policy includes coverage for disciplines within the yoga, beauty, massage, and fitness industries.


Unfortunately, we cannot offer coverage for every wellness modality. To see what we don't cover, click here.

 

Can I Purchase a Student Policy After I Graduate from My Certification Course?

No. The student policy is only eligible to purchase if you are actively enrolled in your first 200HR YTT or first certification course.

I Am in My First 200HR YTT Do You Have a Student Policy?

Yes, we have a discounted student policy that goes for $55 for the entire year. As long as you are currently enrolled you are eligible to purchase. If you have received your 200HR YTT certification from your studio or training center you are no longer eligible to purchase a student policy with NACAMS.

I Only Teach Online Fitness Classes Do I Need Insurance?

Yes, we highly recommend still purchasing insurance if you are an online instructor. A NACAMS policy offers coverage for live-streaming & pre-recorded online classes.

I'm Traveling to Teach in Costa Rica for a Yoga Retreat, Am I Covered?

Unfortunately, we do not offer any international instruction.

How Many People Can I Add to My Policy to Be Covered?

You can add an unlimited amount of additional insureds to your policy. It is $10 per additional insured or $30 for unlimited additional insureds.

What is an Additional Insured and Why Do I Need Them or Can I Add My Employees to Be Covered for the Services They Do?

An additional insured is a person or organization that is added to an insurance policy to provide them with coverage for a specific event or project. It is a way to extend your insurance liability coverage to another party who may also be held liable for any damages or injuries that occur during the event or project. Most employers or events will ask to be added as an additional insured to your policy. 

Can I Increase the Coverage Limit Amounts?

We do not offer an option to increase coverage amounts. We have designed a high-coverage policy that protects wellness professionals in the event an incident occurs.

Does NACAMS Cover My Small Pilates Studio as Well?

We are an individual liability insurance policy that only covers the individual against any claims. If you own a business, you will need to purchase a Business Owners Policy in addition to a professional liability insurance policy.