Legal Essentials You Might Be Overlooking In Your Health Coaching Business

As a health coach, you’ve worked hard to build a business that helps others thrive. But are you taking the right steps to protect yourself and your practice? Legal pitfalls can catch even the most well-meaning health coaches off guard. From staying within your scope of practice to safeguarding your intellectual property, the legal side of your business is just as important as the services you provide.

Let’s explore a few key areas that every health coach should consider—and how addressing these issues can save you time, stress, and money in the long run.

Are You Staying Within Your Scope of Practice?

Did you know that something as simple as recommending a specific supplement could put you at risk for the unlicensed practice of medicine? Health coaches are not licensed to diagnose, treat, or prescribe, yet many unknowingly cross these lines in their client sessions.

➡️ Have you defined clear boundaries in your practice? Do your contracts include a disclaimer to protect you?

If you’re unsure where your role ends and a licensed healthcare provider’s begins, it’s time to take a closer look at your scope of practice. Failing to address this could lead to fines and in some instances even imprisonment.

Are Your Client Agreements Working for You?

Many health coaches rely on generic agreements—or worse, none at all. Your service agreement is more than just paperwork; it’s your first line of defense against misunderstandings and disputes.

➡️ Does your agreement clearly explain your role? Does it set expectations about refunds, cancellations, or results? Does it address items specific to health coaches like scope of practice, liability and privacy of healthcare information?

If you don’t have a professionally crafted agreement, tailored specifically for health coaches you could be leaving yourself open to liability. This is an issue you don’t want to overlook.

Are You Protecting Client Privacy?

Even if HIPAA doesn’t directly apply to your coaching practice, respecting client confidentiality is non-negotiable. Mishandling sensitive client information could damage your reputation—and potentially lead to legal action. But the truth is HIPAA does apply to health coaches in certain instances and if you don’t know when those instances are, you could be acting in violation of federal law.

➡️ Are you using secure systems to store client information? Do you have a privacy policy that protects both you and your clients?

Privacy compliance isn’t just for medical professionals. If you’re not taking it seriously, it’s time to rethink your approach.

Is Your Business Structure Putting Your Assets at Risk?

Choosing the wrong business structure—or failing to set one up altogether—can leave your personal finances vulnerable. Many health coaches don’t realize the potential consequences of not having a legal entity in place. In the alternative, if you do have a legal entity but are not currently using it or making a significant amount of money, it could be more harmful than helpful to have that entity in place.

➡️ Have you considered forming an LLC or Corporation to separate your personal and business liabilities? Or if you have a separate business entity already have you taken stock of whether it is working for you or against you?

The right business structure can protect you, but it’s not a one-size-fits-all solution. What works for another coach may not work for you.

Are You Complying with FTC Rules for Marketing?

If you promote supplements, wellness products, or other services, you might be subject to Federal Trade Commission (FTC) guidelines. Even a small oversight in your marketing efforts can lead to significant penalties.

➡️ Are you disclosing affiliate relationships? Are you making claims that could be considered misleading?

Marketing is a powerful tool, but it comes with responsibilities. Don’t let a lack of knowledge about these rules jeopardize your business.

What You Don’t Know Can Hurt You

Many health coaches don’t realize they’re operating on shaky legal ground until it’s too late. The good news? These problems are preventable. By addressing potential legal blind spots now, you can build a business that’s not only impactful but also protected.

Next Steps

Feeling a little overwhelmed? Don’t worry—you’re not alone. Legal compliance doesn’t have to be confusing or intimidating. That’s why I’ve created customizable contract templates and resources specifically for health coaches. They’re designed to help you protect your practice without spending hours researching or guessing what’s needed.

➡️ Explore our Shop Contracts section to find the tools you need to safeguard your business today and make sure to get on our mailing list so you don’t miss legal and product updates!