My T has never hugged me, or offered to hug me. We have never talked about touching policy- but I think it would be safe to assume he has a no touching policy. I have to admit, though.. I am not sure I would take him up on that offer anytime soon if he asked if I wanted a hug.

In your case, that would have been super akward and I would have said no. Although, there is a chance it may be a comfort to know he is willing to hug- if you ever need one.