Illustrative Case Study: A Yoga Instructor Faces a Client Injury Claim and How PI Responded

Disclaimer: This case study is an illustrative example only. Actual claim costs, insurer responses and outcomes will vary depending on the circumstances of the claim and the applicable policy terms, conditions, limits, exclusions and eligibility requirements. 

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At a glance

• A client alleges that a yoga instructor’s assessment, exercise programming and instruction contributed to an injury.
• After receiving a compensation demand, the instructor  notifies their Professional Indemnity insurer.
• During the investigation, training records, client communications and other relevant evidence are reviewed.
• The insurer and appointed representatives assess liability, policy coverage and potential defence or settlement options as the claim develops. 
• In this illustrative example, the claim is settled without an admission of liability, with PI insurance responding to eligible claim costs subject to the policy terms, conditions, limits and exclusions. 

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A yoga instructor takes on a new client who discloses a pre-existing knee issue during the pre-exercise screening. Based on the information provided, the instructor develops a program designed to build strength and gradually increase the client’s training load.

Over several sessions, the client progresses through the program. During one session, the client’s knee pain worsens after a weighted lower-body exercise. The client seeks treatment and alleges that the exercise was unsuitable for their condition and should have been modified or excluded.

The client seeks $40,000 in compensation for alleged treatment costs and lost income, claiming that the yoga instructor’s professional assessment, exercise programming and instruction contributed to the injury. The instructor disputes the allegation of negligence. 

Because the allegation relates to the yoga instructor’s professional assessment, exercise programming and instruction, Professional Indemnity insurance may be relevant. The illustrative case below follows the claim through notification, investigation, legal defence and resolution. 

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The Yoga Instructor Notifies Their Professional Indemnity Insurer

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Once the instructor receives the client’s compensation demand, they notify their Professional Indemnity insurer in accordance with the policy requirements rather than trying to negotiate the claim themselves.

The insurer receives details of the allegation and injury, when the instructions  occurred and the professional services involved.

Timing is particularly relevant because PI insurance is generally written on a claims-made basis. This usually means the policy must be active when the claim is made and notified, subject to the policy wording. Any applicable retroactive date also determines how far back prior professional work may fall within the policy’s scope.

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The Insurer Investigates What Happened 

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The insurer then reviews both sides of the allegation. The question is not simply whether the client suffered an injury, but what information the instructor had, what professional decisions they made and whether those decisions may have contributed to the outcome. 

During the investigation, the instructor needs to cooperate with the assessment process by providing information, answering questions and clarifying details about the work they performed and how it was carried out. They may be asked to provide records and information such as: 

• client’s pre-exercise screening information
• original yoga program and any modifications
• session notes, including exercises completed and any reported pain or difficulty
• emails, text messages or other written communications between the instructor and client
• instructions or technique guidance provided during yoga sessions
• evidence of the instructor’s qualifications and agreed professional scope 

An independent expert is engaged to assess the yoga programming and the connection between the disputed exercise and the client’s injury. Together with other investigation work, these costs reach approximately $4,000.

This information does not automatically prove or disprove negligence. It provides the factual basis needed to determine what happened and whether the evidence supports the allegation. 

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The Insurer Assesses Liability and Whether the Policy May Respond 

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Once the evidence has been gathered, the insurer and appointed representatives assess whether the instructor’s professional services may have fallen below the standard reasonably expected of a yoga instructor in those circumstances. 

They consider the client’s disclosed knee condition, the exercise selected, how the program was progressed and whether the instructor responded appropriately to the client’s condition and any pain or difficulty reported during the yoga session. They also assess causation, meaning whether the alleged error or omission caused or contributed to the injury.

The insurer separately considers whether the claim falls within the PI policy terms. This is different from deciding whether the instructor was legally responsible for the injury. The instructor may deny liability, while the insurer assesses whether the claim is covered under the policy. 

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Legal Defence Begins as the Claim Develops 

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As the claim progresses, legal representatives are appointed to respond formally to the client’s allegations and work towards a resolution. 

Solicitor fees, evidence review, correspondence and negotiations add approximately $8,000 in legal defence costs.

Combined with the earlier investigation and expert costs, the claim has now incurred around $12,000 in investigation and legal defence costs, even though the instructor has not been found negligent. These costs show how a professional allegation can create significant expenses before liability has been established. 

The instructor may also need to pay the applicable policy excess, which is the amount to be contributed toward an eligible claim before the insurer pays the remaining covered costs. The amount and how it applies depend on the specific policy.

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The Claim Reaches an Outcome

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After the evidence is reviewed and negotiations take place, the parties agree to settle the claim for $25,000 without an admission of liability.

In this illustrative example, the total cost of the claim is:

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Professional Indemnity insurance may cover eligible investigation, defence and settlement costs, subject to the policy terms, conditions, exclusions and indemnity limit. For a broader breakdown of where PI cover may and may not respond, read our guide to what Professional Indemnity insurance covers and excludes. 

The limit of indemnity is the maximum amount the insurer may pay under the relevant cover, subject to the policy wording. If eligible claim costs exceed the available limit, the instructor may need to fund the amount above that limit themselves. 

For example, if the instructor had a $30,000 indemnity limit and the covered claim costs totalled $37,000, the instructor could be responsible for the $7,000 above the policy limit, in addition to any applicable excess.

If the policy covered all $37,000 of claim-related costs and a $1,000 excess applied, the instructor may need to contribute $1,000 towards the claim. The insurer may then cover the remaining eligible costs, subject to the policy terms. Without PI insurance, the instructor could potentially have had to fund the full claim costs themselves. 

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What began as a client injury became a professional claim when the instructor’s assessment, programming and instruction were challenged. The case also shows why records kept throughout the engagement are important and how quickly investigation and legal costs can build before liability is established.

For yoga instructors, suitable PI cover can help manage that financial exposure if a claim falls within the policy terms. Sami Insurance offers professional indemnity insurance for yoga instructors and other eligible allied health professionals, with cover available up to $10 million. 

If you are reviewing your cover or looking for a PI insurance quote, you can request a quick quote online with Sami. Eligibility requirements, terms, conditions, limits and exclusions apply.

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FAQs

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Does a waiver or client consent form prevent a yoga instructor from being sued?

Not necessarily. A waiver or consent form does not prevent a client from making a claim. Its relevance will depend on the wording, the circumstances of the incident and whether the instructor met their professional obligations. It may form part of the evidence considered, but it does not automatically eliminate the instructor’s liability.

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Can a yoga instructor’s PI policy respond to work completed before the current policy started?

Potentially. This depends on the policy’s retroactive date, which determines how far back eligible past professional work may fall within the policy’s scope. The policy generally also needs to be active when the claim is made and notified, subject to the policy terms. Work completed before the retroactive date may fall outside the policy’s scope.

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Should a yoga instructor notify their insurer about a complaint before the client threatens legal action?

Potentially, yes. If a complaint or circumstance could reasonably lead to a claim, the policy may require the instructor to notify their insurer before formal legal action begins. Prompt notification helps ensure the insurer can assess the issue early and that any policy notification requirements are met.