Interior designers work on a variety of residential and commercial projects, from single-family homes to large office buildings. Their work is complex and exposes them to potential liability risks. That’s why having the right insurance coverage is crucial for interior designers.
There are several key types of insurance interior designers need in order to protect themselves, their business, and their clients. This includes general liability insurance, professional liability insurance, commercial property insurance, workers compensation insurance, and business owner’s policy insurance.
General Liability Insurance
General liability insurance, often referred to as GL insurance, is one of the most important policies for interior designers. It protects against third-party bodily injury and property damage claims. For example, if someone slips and falls in a home or office you designed, GL insurance helps cover medical bills and legal expenses. It also covers damage to a client’s property caused by the insured or their employees.
Key Details
- Covers legal fees, medical bills, settlements
- Protects against third-party claims
- Typically $1 million to $2 million in coverage
Professional Liability Insurance
Also referred to as errors and omissions (E&O) insurance, professional liability insurance is crucial for interior designers. It protects against claims alleging the insured was negligent in their professional work or failed to perform services. An interior design mistake, like specifying the wrong materials or layout, could be very costly without this policy.
Key Details
- Covers legal defense fees and damages
- Protects against negligence claims
- Typically $1 million to $5 million in coverage
Commercial Property Insurance
For interior designers who operate an office, studio or showroom, having commercial property insurance is important. It covers damage to your business location and contents due to covered causes like fire, smoke, vandalism, theft and more. You can also add coverage for expensive items like computers, software, furnishings, inventory and valuable equipment.
Key Details
- Covers damage to office/studio
- Option to add coverage for valuables
- Typically equal to reconstruction cost value
Workers Compensation Insurance
In most states, businesses with employees must carry workers compensation insurance. It provides medical, rehabilitation and wage replacement benefits to employees who suffer job-related illnesses or injuries. This protects interior designers from expensive claims and lawsuits from injured workers.
Key Details
- Covers medical bills and lost wages
- Required by law in most states
- Premiums based on payroll, job duties
Business Owner’s Policy
A business owner’s policy (BOP) packages common coverages like property, liability and business interruption insurance into one policy. It’s a cost-effective way for interior designers to get broad, essential protections for their business. BOPs can also include coverages like commercial auto, equipment breakdown and cyber insurance.
Key Details
- Bundles multiple policies together
- Typically includes general liability, professional liability, property
- Can customize with other coverages
Getting the Right Insurance Package
Every interior design firm has unique risks and insurance needs. Partnering with an experienced insurance agent or broker who serves the design industry is key. They can evaluate your firm’s exposures and build a customized insurance portfolio to cost-effectively protect your business.
Factors that influence your insurance needs include:
- Size of projects and clients
- Types of projects – residential, hospitality, healthcare, etc.
- Number of employees
- States you operate in
- Annual revenues
- Years in business
- And more
An insurance professional will analyze these details before recommending a suite of policies to properly cover your interior design practice. Be sure to work with someone who understands the unique risks designers face.
Protect Your Livelihood
Operating an interior design business comes with substantial risks – allegations of negligence, property damage, employee injuries and more. Carrying adequate insurance is the best way to defend against potentially bankrupting legal claims or losses.
Partner with a commercial insurance expert to make sure you have the right mix of coverages and limits. While no insurance can eliminate all risks, having robust policies in place allows you to run your design firm with greatly reduced exposure.
