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While both life coaches and licensed therapists can offer valuable support within their scope of practice, it's important to recognize some key differences between the two, particularly in terms of education and liability. Licensed therapists must have advanced degrees, thousand of clinical residency hours and pass a state exam. Therapists are held legally and ethically accountable for the care they provide to clients. They are required to follow professional standards and maintain confidentiality. Therapists are required to carry malpractice insurance, which protects clients in case of negligence or misconduct. If a therapist fails to meet these professional standards or causes harm, they can face legal consequences, including lawsuits or loss of licensure.