As a coach, you're juggling a million responsibilities—building your brand, acquiring customers, delivering products or services, and managing your team. But there’s one crucial responsibility that often gets overlooked: protecting yourself legally and that can get coaches sued.
The truth is, no one starts a business expecting to get sued, yet legal disputes are one of the biggest risks coaches face. And the #1 mistake that get coaches sued?
Not having clear, legally binding contracts in place.
Let’s dive into why this mistake is so costly, what you can do to avoid it, and how to safeguard your business starting today.
Why Not Having Contracts Is a Recipe for Disaster
Contracts aren’t just boring legal documents—they’re your safety net. When you skip having a contract or rely on vague agreements, you leave yourself wide open to misunderstandings, disputes, and even lawsuits. Here’s why:
1. Misunderstandings Can Spiral into Disputes That Get Coaches Sued
Without a written agreement, each party may have a different interpretation of what was agreed upon. For example:
- A client might expect unlimited revisions when you only planned for two.
- A partner could assume they’re entitled to a 50/50 split when you were thinking 70/30.
These misunderstandings often escalate into costly legal battles.
2. You Lose Legal Protection & Coaches Get Sued
A contract clearly outlines the rights and responsibilities of all parties involved. It’s your best defense if someone doesn’t hold up their end of the bargain. Without one, you’re essentially relying on goodwill, and that won’t hold up in court.
3. Scope Creep and Payment Issues
Ever had a client ask for “just one more thing” that wasn’t part of your original agreement? Without a contract, it’s hard to push back. Even worse, if a client refuses to pay for completed work, you may have no recourse. And Coaches get sued by clients for verbal contracts, when a written one is missing.
4. Intellectual Property Disputes Can Get Coaches Sued
If you create content, designs, or ideas for a client or partner, who owns them? Without a contract, you could lose ownership of your intellectual property—or end up in a dispute over who has the rights.
5. Compliance Problems
Whether you’re hiring employees or working with contractors, misclassifications and unclear terms can lead to lawsuits or government penalties.
Real-Life Examples of What Could Go Wrong
Here are a few scenarios to illustrate the risks:
- Freelancers and Service Providers: You deliver a project, but the client refuses to pay, claiming it wasn’t what they expected. Without a contract defining the deliverables, timeline, and payment terms, you’re stuck chasing them for money.
- Partnership Disputes: Two entrepreneurs start a business without clarifying roles or equity splits. When disagreements arise, neither has a legal framework to resolve them, leading to lawsuits or the dissolution of the business.
- Customer Refund Requests: A client demands a refund, but your refund policy wasn’t clearly stated. Now, you’re facing a chargeback or legal action.
How to Protect Yourself and Your Business
The good news? This mistake is 100% avoidable. Here’s how to make sure you’re covered:
1. Use Written Contracts for Everything
Whether you’re hiring a contractor, selling a service, or entering a partnership, always get a contract signed. Even basic agreements are better than nothing.
2. Be Specific in Your Terms
Clearly outline:
- Scope of work
- Payment terms
- Deadlines
- Responsibilities of each party
- Ownership of intellectual property
- Dispute resolution processes
3. Get Professional Legal Advice
Don’t rely on templates from random websites. Work with a business attorney to draft contracts tailored to your specific needs.
4. Create Clear Policies
If you’re running an online business, make sure your website has:
- Terms and conditions
- Privacy policy
- Refund and cancellation policies
5. Document Everything
Keep records of emails, agreements, and communications to protect yourself if disputes arise.
Avoiding Mistakes Is Easier Than Fixing Them
Here’s the thing: preventing legal trouble is much easier (and cheaper!) than dealing with a lawsuit. By putting contracts and policies in place now, you’re protecting your business, your reputation, and your future success.
If this feels overwhelming, don’t worry—you don’t have to figure it out alone.
Get Your Free Legal Protection Checklist
To make it easier for you, I’ve created a Legal Protection Checklist that outlines everything you need to safeguard your business. This checklist will help you:
- Identify the key areas where you’re vulnerable
- Understand what contracts and policies you need
- Take actionable steps to protect your business today
Don’t leave your business open to unnecessary risks. Download the Legal Protection Checklist now and take the first step toward peace of mind.
By taking proactive steps to protect yourself legally, you can focus on what you do best—growing your business and serving your clients—without worrying about unexpected legal troubles.
