Therapy vs Coaching
Therapy
Regulated profession: Requires state licensure (e.g., LPCC)
Focus: Healing past trauma, treating mental health disorders, improving emotional functioning
Scope: Can diagnose, assess, and treat mental illness (e.g., anxiety, depression, PTSD)
Client status: Works with “clients” or “patients” who may be in distress or crisis
Goal: Relief of symptoms, emotional regulation, mental health stabilization
Approach: Rooted in clinical models (CBT, psychodynamic, trauma-informed, etc.)
Boundaries: Bound by HIPAA, state laws, ethics codes (e.g., dual relationships, documentation, duty to warn)
Insurance: Often covered by insurance (billing codes required)
Limitations: Can only treat clients in-person and virtually in the state(s) where you’re licensed
Coaching
Unregulated profession: No formal licensure required
Focus: Forward-focused growth, performance, and goal attainment
Scope: Cannot diagnose or treat mental illness — instead helps clients improve habits, mindset, energy, or outcomes
Client status: Works with functional, goal-oriented clients (not typically in acute distress)
Goal: Personal growth, behavior change, performance optimization
Approach: Action-oriented, uses tools like accountability, planning, mindset reframes, and habit tracking
Boundaries: Not bound by HIPAA, but ethical practice still recommended (e.g., confidentiality, scope clarity)
Insurance: Not covered — paid out-of-pocket (often premium pricing)
Flexibility: Can coach clients in-person and virtually across state and country lines