
Editorial Disclaimer
This content is published for general information and editorial purposes only. It does not constitute financial, investment, or legal advice, nor should it be relied upon as such. Any mention of companies, platforms, or services does not imply endorsement or recommendation. We are not affiliated with, nor do we accept responsibility for, any third-party entities referenced. Financial markets and company circumstances can change rapidly. Readers should perform their own independent research and seek professional advice before making any financial or investment decisions.
Thinking About Starting A Wellness Coaching Business?
The wellness industry is HOT right now.
Global health and wellness coaching market size is expected to reach USD 37.96 billion by 2034.
And here's the problem with that…
Most newbie wellness coaches are too busy taking action and learning how to build their business to really think about healthcare law and how it applies to them.
The truth…
Healthcare law DOES apply to wellness coaches. Many wellness coaches run into problems because they don't know how healthcare law applies to them. From HIPAA compliance to Scope of Practice regulations there are legal landmines everywhere for wellness coaches who aren't sure what they should and should not be doing.
If you want to learn how to build a legit coaching business you need to understand healthcare law. Not only that, but working with a healthcare law firm can help you grow your wellness coaching business without any costly legal mistakes.
This post will teach you exactly how healthcare law applies to wellness coaches…
Here's the thing…
Unlike traditional healthcare professionals such as nurses and doctors, wellness coaches operate in a bit of a grey area. For the most part, wellness coaches are not licensed healthcare providers.
But…
As a wellness coach, you're giving advice to your clients that often relates to their health.
Nutrition. Stress. Exercise. Sleep. Diet. Weight loss.
Coaches dive into these topics with their clients all the time. Topics that can quickly become medical advice if you're not careful.
Talk about legal trouble…
The US Department of Health and Human Services' Office for Civil Rights has collected more than $144 MILLION in fines for HIPAA violations. And that's just HIPAA violations. If you're caught practicing medicine without a license you could lose your business.
Yikes.
The point is…there are laws that apply to you and your wellness business. You just may not know it yet.
If you've heard the term "scope of practice" before, it's probably because you've already run into trouble with it.
In each state, there is a list of what wellness coaches are allowed to do and NOT allowed to do.
And some states require wellness coaches to be licensed before practicing "medical nutrition therapy" or "dietetics."
If you provide these services in one of those 12 states, you'll need to become licensed before you can offer those services.
Offering "medical nutrition therapy" or "dietetics" services without a license can result in you being charged with the practice of medicine without a license.
Many wellness coaches struggle with where to draw the line. Here's a good rule of thumb…
Here's what wellness coaches can do:
Here's what wellness coaches SHOULD NOT do:
Stick to coaching your clients on their wellness journey. Don't give medical advice.
Ah yes, the ever-popular healthcare law that applies to nearly every person working with clients.
You may or may not be subject to HIPAA based on how you run your wellness coaching business.
Does HIPAA apply to wellness coaches?
It can.
If you are working under a healthcare system or with medical professionals then any interaction with your clients will need to be HIPAA compliant.
Essentially, if you have anything in your coaching business that can connect information to a specific client then you need to take data measures to protect their information.
You don't want to be on the list.
Here are examples of HIPAA fines the Department of Health and Human Services' Office for Civil Rights has collected.
You get the picture.
Violating HIPAA can cost you your business.
Here's what you need to do to make sure you're HIPAA compliant.
If HIPAA applies to your business, then you need to take steps to make sure any client health information you collect is secure.
Don't make promises to your clients that you can't keep.
The FTC has rules about advertising that you need to be aware of when marketing your coaching business.
Your advertisements cannot promise certain results. This includes curing diseases. Don't make boasts that your coaching program will give your clients guaranteed results.
Here are a few examples of things you SHOULD NOT say:
Here are some examples of what you can say:
When using testimonials, make sure they are typical results that your clients can achieve by signing up for your coaching program. You don't want to mislead your potential clients.
One of the best ways to cover your business is to have a good contract.
Every new client should sign a contract before you begin working with them.
Your contract should outline:
Having a good contract cannot be stressed enough.
Additionally, you should have your clients sign a waiver before you begin working with them.
Your waiver should state that they know there is a risk involved when making lifestyle changes and that they will not hold you liable if they don't reach their goals.
But a contract and waiver won't protect you from everything.
You should also look into getting professional liability insurance. You can read all about that below.
You should have professional liability insurance.
Otherwise known as errors and omissions insurance, this is insurance that will protect you if a client tries to sue you claiming that your advice caused them harm.
Think of it as your safety net.
It's not very expensive and is well worth the investment.
You should know enough about healthcare law to at least know what you need to do to run your wellness business without getting in trouble.
You don't need to be a healthcare attorney.
However, if you want to make sure you have everything covered and aren't leaving any room for liability then you should hire an attorney.
Attorneys can help you with…
Not only will they help you avoid any possible legal troubles, but they can help save you money in the long run.
You don't want to be forced to pay thousands in fines when you could have hired an attorney to prevent those issues from happening.
Yes, absolutely. Because you provide advice on health-related topics like diet, stress, and exercise, you operate in a space where healthcare regulations are relevant. Laws concerning your scope of practice, client data privacy (HIPAA), and truthful advertising are all designed to protect you and your clients.
One of the most serious errors is accidentally providing medical advice. This is called violating your 'scope of practice' and could be seen as practicing medicine without a license. You should always stick to coaching and refer clients to qualified medical professionals for any diagnoses or specific treatment plans.
It depends on your business structure. If you work with medical professionals, receive client referrals from them, or handle any identifiable health information, you likely need to be HIPAA compliant. Protecting client data with secure systems is essential to avoid huge fines.
No, you should never guarantee results. The FTC has strict rules against making promises you can't keep, such as 'lose 10 pounds in 10 days guaranteed' or claiming to cure a disease. Your marketing should be honest about the support you provide, noting that client results may vary.
A strong contract is a fantastic start, but it's just one piece of the puzzle. You should also use a client waiver and secure professional liability insurance. This multi-layered approach provides a much stronger safety net for your business. For comprehensive protection, consulting a legal expert like the team at Robin Waite Limited can be very beneficial.
Thinking About Starting A Wellness Coaching Business?
The wellness industry is HOT right now.
Global health and wellness coaching market size is expected to reach USD 37.96 billion by 2034.
And here's the problem with that…
Most newbie wellness coaches are too busy taking action and learning how to build their business to really think about healthcare law and how it applies to them.
The truth…
Healthcare law DOES apply to wellness coaches. Many wellness coaches run into problems because they don't know how healthcare law applies to them. From HIPAA compliance to Scope of Practice regulations there are legal landmines everywhere for wellness coaches who aren't sure what they should and should not be doing.
If you want to learn how to build a legit coaching business you need to understand healthcare law. Not only that, but working with a healthcare law firm can help you grow your wellness coaching business without any costly legal mistakes.
This post will teach you exactly how healthcare law applies to wellness coaches…