Contributed by Nicole Farley, Senior Vice President of Agency and Carrier Operations at Bold Penguin. As SVP of Agency and Carrier Operations, Farley works to streamline the commercial quoting experience for agents and business owners, working closely with several large enterprise partners and carriers to achieve mutual short and long-term goals and objectives.
Unique Risks For Evolving Industries is a six-part educational series crafted to help insurance agents navigate the unique risks of industries that have evolved in a post-pandemic world. Each month, Bold Penguin will explore one unique industry that was significantly impacted by the social and economic shifts of COVID-19. We’ll discuss how the industry has evolved, trends, associated risks, and actionable tips to ensure the entrepreneurs of today are protected.
The May installment focuses on online coach businesses and other entrepreneurs providing virtual support services. The complete Unique Risks For Evolving Industries 2025 Report will be available in July.
In this installment of the Unique Risks For Evolving Industries, we dive deep into the growth trajectory of online support services like virtual or online coach offerings, professionals who tutor online, mental health coaching, and more. We'll share how the landscape has changed and grown since COVID-19, along with key considerations for these entrepreneurs.
First, it’s important to define what an online support service provides and how it differs from a direct service. The latter provides a service directly (for example, you pay me to mow your lawn, and I mow it). A support service teaches the customer how to accomplish that task themselves (for example, if you teach me how to crochet, I now have that skill forever). Support services are vital because they teach people, to use one of the world's oldest analogies, “how to fish.”
Many of us have experienced changes in direct services; for example, health care providers in many specialties now offer a virtual visit option. That has added convenience. But on the support services side, online opportunities have expanded dramatically for entrepreneurs to find clients and deliver their services to a much broader audience.
Support services like physical training and coaching aren't new. However, online collaboration technologies came along and revolutionized support services. The result was a massive, immediate expansion of the support services industry as these technologies became available to millions of people, globally, delivered remotely and virtually.
The ease of online delivery of support services through Zoom and other video conferencing and communication tools has enabled people to receive guidance, coaching, expertise, and support from anywhere, from any provider, instantaneously. And the market for these support services expanded exponentially.
Opportunities for virtual delivery of support services by providers like an online coach or tutor changed the game for both professionals and the consumers they help. Zoom sessions replaced face-to-face interactions, streamlined and transformed scheduling, and alleviated transportation issues.
Additionally, from the providers’ perspective, social media has become a crucial, and relatively inexpensive (albeit time-intensive), tool for marketing, engagement, and brand awareness, allowing these entrepreneurs to connect with a wider audience and grow their customer base.
Then, another black swan event, COVID-19, further expanded the market for support services. While virtual, collaborative, and remote access tech expanded the reach and availability of online coach offerings, the COVID-19 outbreak escalated the demand for these services when delivered virtually.
Examples of online coach service providers could be career leadership or public speaking coaches, personal budget coaches, or resume coaches, all of whom can now meet with clients from around the corner or across the globe. For the purposes of this post, we will concentrate on online life coaches, virtual health and wellness coaches, and online tutors. These are all spaces where entrepreneurs have anticipated runaway growth and are taking advantage of the opportunity it represents.
Commercial insurance agents looking to expand their book of business should take notice of what is becoming one of the fastest-growing niche industries. Below, we will highlight some of the notable growth trends in each vertical and share some common misconceptions when it comes to protecting these online coach entrepreneurs.
We are experiencing a growth in demand for niche life coaches as people search for guidance in specific areas such as financial planning or career transitions. The U.S. life coach market is expected to reach a value of $2.76 billion by 2029 from $2.07 billion in 2023, growing at a CAGR of 4.95%, according to the U.S. Life Coach Market - Focused Insights 2024-2029. This growth is due in part to COVID-19, which made teleconferencing a household term. Since 2020, it’s become considerably easier to find and engage with an online life coach that has the exact expertise an individual is looking for, regardless of location.
Since COVID-19, adults are increasingly prioritizing their health, fueling a steady demand for health and wellness coaches. In 2021, there were approximately 128,000 health coaches and health educators whose purpose was to advise clients on healthy lifestyle habits and to help them manage chronic conditions. Because this is not a regulated industry (for now), it follows that as the demand rises, entrepreneurs can likely rush in to fill the need quickly. The lack of regulation, however, means there is susceptibility to additional risks. And for the same reasons outlined above, delivery of these services in an online platform is a natural fit for both client and provider.
A 2024 report on the platform Research And Markets titled U.S. Health Coaching Market states, “Online health coaching represents a transformative force in the U.S. health coaching market, offering a convenient, personalized, and scalable approach to improving health and wellness outcomes. With the ever-changing landscape of healthcare, online health coaching stands poised to play an increasingly important role in shaping the future of health and wellness for generations to come.” Indeed, according to Statista, revenue in this health and wellness-focused online coach market is expected to show an annual growth rate of 4.81%, resulting in a projected market volume of $5.29 billion by 2029.
The U.S. (and global) online tutoring services market is another industry poised for continued post-COVID-19 growth. Online tutoring allows for a customized curriculum for a range of students’ needs. Maybe it’s a student who fell behind during COVID-19, or one who is seeking a competitive edge for standardized tests like the SAT and ACT. Online delivery of academic guidance allows students to learn at their own pace, schedule when convenient, and is often more affordable than in-person tutoring. Beyond traditional academic tutors, there are also opportunities for an athletic online coach to help athletes sharpen their sports skills during the off-season.
As of January 2025, Technavio reported that the U.S. online tutoring services market size is forecast to increase by USD 50.29 billion at a CAGR of 19.5% between 2024 and 2029. The flexibility that online tutoring provides, coupled with easy access to video conferencing platforms, facilitates tutoring as a natural side hustle for entrepreneurial teachers, coaches, and other subject matter experts. It’s also worth noting that the majority of these teachers-turned-entrepreneurs will have personal lines of insurance already. Agents who are able to serve both personal and commercial lines to these customers can leverage these opportunities for growth.
Many of these professions, some of which are not even regulated, have low barriers to entry. That means more entrepreneurs are entering these fields and expanding into corollary ones. Many are leveraging this demand to supplement their income as a side hustle, or to “dip their toe in the water” before making larger career transitions.
For example, a health and wellness entrepreneur might have started with a few virtual clients seeking healthier eating habits. But as time progresses, she might begin to make or sell meal kits as well. That additional source of revenue comes with additional risks. The insurance agent should understand the full scope of services (and now the products) the online coach provides.
In a recent interview, Geneie Andrews, Director of Partnerships with biBERK, stated, “One of the most notable trends we have seen is regarding the entrepreneurial spirit of small business owners. Businesses created to service a specific need find themselves needing or wanting to expand into new areas. These business owners adapt and pivot in ways they may not have expected when they first obtained insurance coverage.” She continued, “While many new services they expand into may likely be acceptable, it’s important to review the changes in direction and services with your agent or carrier to ensure that proper coverage is in place and there are no unexpected surprises.”
There are several common, potential pitfalls when working to protect the investments of these entrepreneurs. It’s best to be cognizant of popular misconceptions like those outlined below in order to ensure the right coverage for the right risks.
Depending on what service the entrepreneur is providing, he might need more than the usual foundational business insurance products. Andrews stated, “Without clients visiting a fixed location, there can be a likely assumption that a business might only need a General Liability policy to be good to go. While this can be true, many General Liability policies exclude professional services. Coverage for those services may require a Professional Liability policy for the professional services they provide.”
COVID-19 also gave massive growth to work-from-home (WFH) and hybrid arrangements. If an entrepreneur works from home, she might assume that her homeowner’s policy is the only coverage needed to be protected.
Andrews went on to clarify, “Even though clients may not visit your office, an online business owner may still have some necessary business personal property, like computer monitors, laptops, tablets, phones, and printers that are essential to their day-to-day operations. Many standard Homeowners policies have a standard limit of $2,500. A business owner’s policy (BOP) will provide coverage for the necessary business personal property, which may easily exceed $2,500, and general liability coverage in a very cost-effective policy.”
Some customers will have contractual obligations that require large contract limits. Many assume their current policy will satisfy these agreements, when in fact it does not.
Andrews pointed out, “Another item often overlooked is the limits of liability insurance which a contract for a particular client may require. These contracts often require limits of more than $1M.” She shared that agents should spend the time to ensure that their current policy limits align or recommend an umbrella policy as a cost-effective way to satisfy those requirements.
Cyber criminals don’t just attack big businesses. In fact, entrepreneurs with limited resources for robust security measures are prime targets for cyber attacks. Online coach service providers might not think cyber insurance is necessary due to their size or limited scope of work. But any business that stores personal data, accepts online payments, or delivers its services virtually should consider cyber insurance. Agents should take a few minutes to review the insured’s operational model to ensure they are properly protected.
The rise of the online coach and similar support services is more than just a trend—it's a shift creating new opportunities for savvy insurance agents ready to grow their business. As life coaches, wellness coaches, and online tutors continue to expand their reach, they also face new challenges and risks.
Commercial insurance agents who understand these risks—and who proactively offer customized coverage solutions—can position themselves as trusted advisors and capture a fast-growing, loyal client base, some of whom are already clients with personal lines. Now is the time to connect with entrepreneurs in the online support services industry, educate them on the exposures (and the misconceptions), and ensure their coverage grows along with their ambitions.
The preceding article is part five of a six-part educational series crafted to help insurance agents navigate the unique risks of industries that have evolved in a post-pandemic world, with the purpose of keeping commercial insurance agents abreast of industry trends. The complete Unique Risks For Evolving Industries 2025 Report will be available in July.
Contact Bold Penguin with questions about this series or how we can work together.
The fifth installment in the Bold Penguin series addresses how the landscape has changed for online coaches and other support services businesses since COVID-19, and the unique risks these entrepreneurs now face.
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