Do You Still Need Liability Insurance After Retiring from Your Healing Practice?

The room is quiet. Your last client has come and gone. Maybe your healing space is now a guest room, or your tools are carefully stored in a closet. After years of supporting others through transformation, you’ve stepped away—whether for a pause, a new chapter, or a well-earned retirement.

There’s a deep satisfaction in knowing the work you’ve done made a difference. But even after you’ve closed your doors, one practical question might still linger:

What happens if a client files a claim months—or even years—later about a past session?

It’s a scenario many practitioners don’t think about until it’s too late. And whether you’re still practicing, taking a break, or officially retired, your protection comes down to the type of insurance you had in place while you were active.

In this article, we’ll walk through exactly what that means—why the difference between claims-made and occurrence-based policies can decide whether you’re covered or not—and how to make sure the work you’ve already done remains protected long after your final session.

What’s the Difference Between Claims-Made and Occurrence-Based Insurance?

Not all insurance policies work the same way. When it comes to liability protection, the difference between a claims-made policy and an occurrence-based policy can be the difference between being protected—or not—after you stop practicing or take a break from your work.

Claims-Made Insurance

• Covers incidents if the claim is filed while the policy is active.
• If you cancel your policy and a client makes a claim afterward—even if the session happened during your coverage period—you’re not protected.
• To stay covered, you may consider purchasing tail coverage, which can be expensive and time-limited.

What’s Tail Coverage?
Tail coverage is an add-on for claims-made policies that extends your protection after the policy ends. You have to buy it separately, and it usually only covers a set amount of time (like 1–3 years)—which might sound like plenty, but in some states, the statute of limitations for filing a claim can be longer.

Occurrence-Based Insurance

• Covers any incident that happened while your policy was active, no matter when the claim is filed—even months, or even years, later.
• As long as your policy was active at the time of the session, you’re covered.

Here’s an example: Let’s say a client slipped and fell in February. You retired from your practice and canceled your insurance in March. In April, they filed a claim about the fall.

• If you had a claims-made policy and it was no longer active, you wouldn’t be covered.
• If you had an occurrence-based policy—like EMPA’s—you’d still be protected, because the incident happened while your coverage was in place.

“Occurrence-based coverage protects the work you’ve already done—even if you’ve stepped away from practice.”
Read: Understanding Claims-Made and Occurrence Insurance

What to Do When You’re Retiring or Pausing Your Healing Practice

Even when you’ve stepped away from client work, your responsibility doesn’t necessarily end. That’s why it’s important to set yourself up with a few key steps before you fully close your books:

1. Keep Good Records

Maintain your session notes, informed consent forms, and documentation of any unusual incidents or client communications. Even if you're no longer practicing, holding onto this information for several years is a wise move in case questions arise later.

2. Know the Statute of Limitations

Each state sets its own rules about how long a client has to file a claim. It varies, but many allow for claims months to years (up to 6!) — after the original session. Your safest bet is to prepare as though a claim could arise well after you've stopped practicing.

3. Understand What Your Policy Covers

If you're not sure what kind of plan you have, now’s the time to check. Not all coverage types offer protection after you cancel your policy—and finding out too late could leave you exposed.

What’s Next: Protecting Yourself After Your Final Session

You’ve spent years supporting others with care and intention. Now, as you close this chapter—whether temporarily or for good—it’s just as important to support yourself.

The work you’ve already done still matters. So does how it’s protected.

Understanding the difference between insurance types isn’t just technical jargon—it’s the difference between peace of mind and an unwelcome surprise. If you’re unsure about your current coverage, now’s the time to ask questions.

Want help making sense of what insurance actually protects and how to choose the right kind for your practice?

Download EMPA’s free resource: The Buyer’s Guide to Liability Insurance for Energy Healers

Because even after your last session, your commitment to doing things the right way doesn’t end. Choosing the right coverage is about honoring the standards you’ve carried throughout your practice.

Disclaimer: This article is for educational purposes only and does not provide legal, financial, or medical advice. The examples are general, and coverage may vary by policy. Always refer to your insurance provider or policy language for specific details, as the policy terms take precedence. For legal concerns related to your practice, consult an attorney.