Coaching can be an immensely valuable service for a business owner. Over the years, I've had some fantastic experiences with coaches who made a significant impact on my business journey. However, as the coach, it's crucial to make sure that you are running your business with an unwavering commitment to risk mitigation.

If you’re a long-time listener, you would have heard me talk about why a risk mitigation strategy is critical for small businesses. In today’s episode, I’m focussing specifically on how to protect your coaching business, focusing specifically on your legal documents, often referred to as your coaching agreement.

The Importance of Tailored Agreements

A coaching agreement is a vital document that outlines the terms of your service engagement with clients. It should be specific to you and drafted with your unique business in mind. This contract should include:

Your services: What you do and how you do it.

Exclusions: What you don't do.

Payment terms: How you get paid.

Termination clauses: Your policies on ending the contract.

Disclaimers and Liability Clauses

The most critical parts of a coaching agreement are the disclaimer and liability clauses. These are the sections that will truly protect your business.

Disclaimer Clauses: These clarify explicitly what you are not promising to do, which guarantees you are not making, and what you are not responsible for. This clear communication gives your client absolute clarity about what you are not offering, which helps to prevent misunderstandings and misaligned expectations.

Liability Clauses: These outline what you, as the coach, will not be responsible for. They limit your liability and define very clearly what you undertake to do. Knowing where you're liable and how to limit that liability is crucial.

Why Templates Won’t Suffice

If you’re tempted to use a template or copy someone else’s agreement, think again. Templates do not take into consideration the nuances of your specific business and, in most cases, won’t cover you against risk. You won’t know whether these documents work as intended until you need to rely on them, and by then, it might be too late.

Ask yourself these questions:

Do you have a tailored coaching agreement aligned with your business operations?

Are your disclaimer clauses and liability provisions adequate and correctly worded?

If the answer is no to any of these questions, it's time to consult with a business lawyer or reach out to me for a discussion. Ensuring you have the proper documentation in place will provide the confidence and peace of mind you need to serve your clients effectively.

LINKS:

Discover the Masterclass Series here

Check Your Legals with the Essential Legal Checklist here

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