Podcast Summary

Podcast: Private Practice Startup
Episode: 105 – The Legal Documents You NEED When Starting an Online Coaching Business
Hosts: Dr. Kate Campbell & Katie Lemieux
Guest: Christy Westerfield, Attorney
Date: September 29, 2018

Overview

This episode focuses on the essential legal steps clinicians and therapists must take when starting or expanding into an online coaching business. Attorney Christy Westerfield shares actionable advice on separating coaching from therapy, legal obligations, and the required documents to protect both practitioners and clients. The conversation unpacks misconceptions, gray areas, and offers clear, practical takeaways for compliance and risk reduction in the digital space.

Key Discussion Points & Insights

1. Christy Westerfield’s Background & Inspiration

[04:11–07:25]

• Christy transitioned from a traditional law firm to supporting online coaches, primarily women, after starting virtual health coaching herself.
• She noticed growing demand for legal help among online health coaches and entrepreneurs, leading her to launch her own niche legal practice.
  Quote (Christy, 05:19):

“I was [working in] a more traditional law firm route...but I just kind of had that realization: is this what I’m doing for the next 30 plus years? I want to be doing something more.”

2. Understanding the Online Coaching Legal Landscape

[10:54–13:57]

• Anyone transitioning from therapy to coaching must treat each as a separate service.
• Christy strongly recommends a separate business entity and website for coaching versus therapy to avoid confusion and meet licensing requirements.
• State boards’ biggest concern: clients being misled to think coaching can substitute for therapy.
• Clear separation helps define what's being offered and for whom. Quote (Christy, 11:33):

“The most important thing...when you are a clinician moving into coaching is: it’s got to be something separate from your private practice.”

3. Critical Legal Documents for Online Coaching

[16:02–19:46]

• Disclaimers:
  • Must be on the website (footer), making clear coaching isn’t therapy or a substitute for therapy.
  • Add a robust disclaimer in the coaching client agreement, reiterating to clients that services are distinct from therapy.
  • Advise clients to consult their doctor or therapist as appropriate, especially if coaching covers health/wellness.
• Terms and Conditions & Privacy Policy:
  • Both are required on every website (footer) for legal compliance and risk mitigation. Quote (Christy, 16:12):

“It’s all about the disclaimer...This is affecting not our customers yet, not our clients yet, but just people on our site...reminding them that everything there is not meant as therapy.”

4. Boundaries and Ethical Concerns: Dual Relationships, Duty to Report, and Scope

[20:00–23:32]

• Duty to Report: Licensed clinicians are still mandated reporters (e.g., abuse) even in a coaching context.
• Recommendation: Always obtain sufficient client/emergency contact information and research local regulations, especially when coaching across state lines.
• No Blurring Roles: Never coach and provide therapy to the same individual; refer out or clarify roles if therapy needs emerge. Quote (Christy, 22:15):

“If you have duties to report things...it’s also a good idea if somebody signs up with you as a coach...and you see they are in need of some therapy—you’re only their coach—it’s important to remind them and refer [them] appropriately.”

5. State Board Compliance and Reducing Legal Risk

[23:39–24:50]

• Always check with your state board before launching a coaching venture.
• Email or call for written clarification of state-specific rules—this provides peace of mind and an additional layer of documentation. Quote (Christy, 24:45):

“...for kind of additional peace of mind, I always recommend just email them, call them, just get the okay, let them know what you’re doing...”

6. Takeaways and Resources

[24:56–28:08]

• Legal compliance is essential from the start—there’s no “small business threshold” for legal requirements.
• It does not have to be overwhelming or expensive; with proper planning and resources, legal setup is manageable.
• Christy provides legal document templates and a “Legal Roadmap” checklist for online coaches (linked in the show notes). Quote (Christy, 25:34):

“The main things I want people to take away...there are legal precautions you need to take...but it’s absolutely manageable and doable. It doesn’t have to be a scary, tricky thing.”

Notable Quotes & Memorable Moments

• On Differentiating Services:
  “You have to make it very, very clear that it’s a separate option...it’s a different service.” – Christy Westerfield [12:48]
• On Website Disclaimers:
  “You need the initial disclaimer on your website—that’s for your website traffic. Then...the client agreement...needs an additional disclaimer...” – Christy Westerfield [17:28]
• On Contacting State Boards:
  “I always feel better once some governing body has said, ‘Oh yeah, what you’re doing is fine.’” – Christy Westerfield [24:36]
• On Risk Reduction:
  “I always look at lowering risk...I would still recommend having some type of emergency contact just as a safeguard.” – Dr. Kate Campbell [21:23]

Timestamps of Major Segments

• 04:11 – Christy’s career journey and motivation
• 10:54 – Key advice for clinicians going into coaching
• 14:42 – Real-world challenges of gray area between coaching and therapy
• 16:02 – Deep dive into legal documents: disclaimers, privacy policy, T&C
• 20:00 – Navigating mandated reporting and emergency situations
• 22:10 – Not coaching and providing therapy to the same client
• 23:39 – Importance of checking state board requirements
• 24:56 – Main takeaways and encouragement
• 26:06 – Available resources and further support

Resources & Next Steps

• Christy Westerfield’s Legal Document Bundles for online coaching businesses (accessible via episode show notes).
• “Legal Roadmap” Checklist—a summary guide to what documents are needed (linked in the show notes).
• Hosts’ Customizable Therapist Paperwork, also referenced for those continuing clinical practice.

Closing Thoughts

This episode demystifies the legal side of starting an online coaching business for therapists. Christy Westerfield delivers straightforward, concrete advice: separate your services, get your documents in order, and never ignore compliance. Listeners are reminded that legal protection is not just a formality but an integral part of building a sustainable, ethical online business.