Course Liability Coverage: What You Need to Know Before Selling Online Courses

When you sell an online course, a structured digital learning product sold to students for a fee. Also known as e-learning program, it can be a powerful income stream—but only if you protect yourself legally. Most new course creators think their biggest risk is low sales. The real danger? A student gets hurt, blames your material, and sues you. That’s where course liability coverage, legal protection that covers claims arising from your course content or delivery. It’s a type of professional liability insurance for educators. Without it, even a single lawsuit can wipe out your savings, your business, or both.

Liability isn’t just about physical harm. A student might claim your trading strategy caused them to lose money. Or someone might say your course misled them into quitting their job. Even if your content is accurate, people still sue. Courts don’t care if you meant well—they care if someone suffered harm and linked it to your course. That’s why course terms of service, the legal agreement students accept before enrolling. It’s your first line of defense. A solid TOS sets clear expectations: no guarantees of profits, no medical advice, no liability for misuse. But a TOS alone won’t stop a lawsuit. You need insurance to cover legal fees and settlements. And if you’re teaching anything tied to health, finance, or safety—like CPR training or crypto investing—the risk goes up fast.

Many course creators skip liability coverage because they think they’re too small to be targeted. But lawsuits don’t care about your revenue. A single angry student with a lawyer can start a claim that costs $20,000 to defend—even if you win. Insurance costs less than $500 a year for basic coverage. It’s not about being paranoid. It’s about being smart. You wouldn’t drive without car insurance. Don’t teach without course liability coverage.

What you’ll find below are real guides from creators who’ve been there: how to write a bulletproof terms of service, how to spot when your course needs legal protection, what to include in your disclaimers, and how to handle complaints before they turn into lawsuits. These aren’t theory pieces. They’re tools used by people who run live courses, sell digital products, and sleep better at night because they covered their bases.